Brexit and the recent triggering of Article 50 has already affected many areas of our lives. For motorists in particular, our departure from the European Union will mean many more things just won’t be the same. The car industry in the UK is particularly vulnerable following the Brexit vote and with more and more people renting vehicles for everyday use and special occasions, changes won’t stop at the production line.
As a premier provider of vehicle rentals for all occasions, we keep a firm eye on the latest to ensure our customers and fellow drivers throughout the UK can gain a clear picture of what’s ahead. In this article, we take a closer look at how Brexit could impact on your car rental experience.
Renting a car after Brexit
New car prices are just one factor that will be influenced by the trade deals we are able to secure during Brexit negotiations. As a country we have a proud history of vehicle manufacturing, however an unfavourable deal may put this sector, like many others, in a difficult scenario. We are home to a variety of vehicle manufacturers, and brands like Honda, Jaguar, Land Rover, Mini, Nissan and Toyota also all have factories in the UK.
As well as UK based car makers being affected, the purchase of vehicles manufactured overseas will become more expensive. The latest statistics from the Society of Motor Manufacturers and Traders (SMMT) suggest that the average price for a foreign built vehicle could rise by some £1,500, but how will this affect people who are renting, not buying, vehicles? The increased cost of vehicle buying may have to be passed onto customers, which means the cost of rental could rise.
Paying at the pump
Fuel prices are likely to rise as Brexit negotiations and the path of our departure from the EU becomes apparent. The cost of fuel is likely to fluctuate in accordance with currency value changes, whilst the price of oil will also be affected. The AA has stated that the cost of fuel could equate to £500 more every year for the average two-car family. This figure is also based on the premise that the families will fill up once every fortnight.
Insuring your vehicle
Whether you are renting a vehicle or operating your own, insurance is an unavoidable expense. Insurance premiums however are unlikely to change as a result of Brexit negotiations. Due to the revision of many EU laws as part of the Brexit process, the equality law presented in 2012 that resulted in the gender discrepancies in the insurance industry being abolished could be turned on its head with cheaper car insurance premiums for women being reintroduced.
Driving in Europe
Our selection of European travel ready vehicles make it easier for people looking to drive to and throughout Europe, but how will Brexit affect this freedom of movement for families looking to holiday on the continent or business customers looking to travel outside of the UK?
Around 20 million people every year make the short crossing from Dover to Calais and vice versa, and the proposed changes to customs may result in delays to this usually quick journey. The freedom of movement that we currently enjoy throughout Europe is unlikely to be affected by Brexit due to the abolished border control in 26 European countries. The change to customs however is likely to impact on what you can bring back from Europe, especially when it comes to alcohol and tobacco. The suspected return to traditional duty free shopping could see prices slashed on goods even if allowances are lower.