Brexit
How will Brexit affect my lease?
It seems to have gone under the radar a bit, and understandably for most, but the Brexit is on it’s way and could affect your new vehicle purchase or lease. On the 31st of December, if the UK does not reach a trade deal with the EU, we could see a 10% tariff applied to cars imported from the EU, in line with World Trade Organization (WTO) rules. This means different things depending on where you are in your buying process.
Car manufacturers have been announcing their plans and they really do vary. For example, Audi has announced that it’ll price protect all orders placed now for delivery before March 31st 2021, whilst Ford, Mercedes & Peugeot have confirmed that in the event of a no-deal Brexit, their prices will need to be reviewed. This means if you have a vehicle on order and it’s due to arrive next year, you could see an increase in your purchase or lease cost.
If your lease price goes up
If you have a vehicle on order that is yet to be delivered and has not been price protected, you could see an increase in the event of a no-deal Brexit. Should that happen, your lease will need to be re-quoted based on the new value of the vehicle. If your lease cost goes up, then you’ll need to decide whether to keep it or cancel it.
Of course, if you were to cancel, there won’t be any charges to do so and the fee you’ve paid will carry over to any other deal you take with motorlet in replacement (this could differ if you’ve ordered elsewhere).
If you’re looking to lease
There are two options if you are looking to lease a vehicle; taking delivery of a vehicle before 31st December & taking delivery of one after. Leasing a stock vehicle and taking delivery before the 31st means you can avoid any potential price increases and be on your way for a few years.
If you don’t need a new lease until next year, then I’d recommend looking at deals on brands that are price protecting their orders. Failing that, you could gamble and order a vehicle of your choice, then cancel it if the price does increase.