Home > BREXIT – WHAT IT MAY MEAN FOR YOUR NEW VEHICLE AND SERVICES

BREXIT – WHAT IT MAY MEAN FOR YOUR NEW VEHICLE AND SERVICES

On 31 December 2020 the Brexit transition period comes to an end. This means that from 1 January 2021 the UK will no longer have access to the beneficial tariff arrangements within the EU’s single market and the customs union. Tariffs are a tax or a duty which is added to imported goods. If they are added to new vehicles and parts to keep vehicles running, it could have an impact on the price we all pay for them.  Like many other businesses in the UK, what this means for our customers and products has been a keen area of focus for some time. We’re doing all we can to minimise any impact on service to you. To help, we’ve compiled some key questions and answers for you below.

FREQUENTLY ASKED QUESTIONS

What could happen if a zero tariff trade deal isn’t secured?

While talks continue between the UK and Europe, our industry is still awaiting clarity from the Government to confirm any potential impact that tariffs may have on access to imported vehicles and products. Our industry’s trade bodies and the UK Government is working to help secure a zero-tariff trade deal, however, as we get closer to the deadline, we need to make you aware of what this might mean for new vehicle orders and services.

Could the price of a new vehicle on order change?

Current Government analysis indicates that if a no-deal situation occurred, that World Trade Organisation tariffs could apply to vehicle imports. For cars, this is 10% and for Light Commercial Vehicles (LCVs) different tariff rates may apply. Vehicle manufacturers are also preparing for a no-deal scenario and are deciding if tariffs will be applied to the cost of new vehicle orders. If a manufacturer does apply an import tariff to a vehicle order, it will in turn be added to the price of the vehicle. If you have ordered a new vehicle and its price does increase as a result of a tariff being added by a manufacturer, we will be in touch with you. We’d like to reassure you that if a tariff is applied and the increase makes the vehicle you’ve ordered unaffordable, you have the right to cancel your order within 15 days of notification of the price increase.

What about servicing, maintenance and repairs?

If you have a guaranteed maintenance agreement with us, its pricing will not be affected if tariffs are added on vehicle parts. Manufacturers and our supply partners have also been building up a supply of parts to try to reduce any impact during this period of the transition to help protect against any potential delay.

What about access to electric vehicles?

You may have seen some coverage on this topic and we would like to reassure you that, as one of the UK’s largest leasing companies, we have always taken a bold approach to EVs and use our financial strength to purchase large volumes for our customers. We work closely with manufacturers to secure stock of key car and Light Commercial Vehicles (LCV) models into 2021 and beyond, so we don’t believe there will be an issue at this point in time.

What about travel to other countries?

You can find out the most up to date information on travel to other countries, with your vehicle, on gov.uk and the AA also has further information.

We keep an up-to-date list of the restrictions and requirements of cross-border-travel to ensure that our customers always have the latest knowledge of the regulations. The Arval Driver Desk has the most up to date information on this on – 0370 600 4499 – if you are looking to travel overseas.  

After Brexit, it is expected that:

  • All GB vehicles will need to display GB stickers, regardless of whether they have a GB icon on their number plate
  • Drivers are likely to need a “green card” from their insurer and a driver permit to drive in Europe, which for customers with Arval Total Care can be obtained by emailing: TotalCare@arval.co.uk  
  • If the contract includes a guaranteed maintenance agreement the breakdown cover provided will continue to include the EU

Is there more information on Brexit?

For more information and the most up-to-date positon on the trade negotiations visit gov.uk.