Brexit and the used car market

Brexit

What does `Brexit mean for the UK motor industry?

In a nutshell nobody knows and whilst my main concern is the used car market in Northern Ireland, the motor industry as a whole will be affected one way or another. Depending on the negotiations and result, either the new or used car market will suffer and, in my opinion, it will be the new car market that will feel the pinch the most.

If Britain does leave the UK, it is likely new cars will cost around 10-20% more which will subdue the new car market and drive consumers to the used car market. With natural supply and demand laws, used car prices will rise in cost as dealers have increased competition for good stock and initially profit margins will suffer but inevitably the price increase will be passed onto the consumer.

The price of the pound is constantly fluctuating during negotiations and if/when Britain leave the UK, we may see the business from Ireland dry up here in Northern Ireland. At the minute there is a constant flow of visitors and buyers from R.O.I to look at our used cars in Auto Q Belfast with sales every week. It will be interesting to see which way the pound goes to see if these sales continue.

One buying pattern or emotion we have experienced recently is people being less committed to buy due to the uncertainty of Brexit. A car, is after all, the second most expensive purchase in a typical life. Whilst the Brexit cloud hangs around, it clouds the judgement and decisiveness of your average buyer but when there’s a cloud there’s always a silver lining.  At Auto Q we have our own workshop facilities, so whether its routine maintenance, large repairs or simply a freshen up on the paintwork or alloy wheels, we can do it all on site at a fraction of the cost of franchise garages.

If you would like to call past, grab a coffee and pick our brains, please be our guest and we can talk you through your vehicle options. We don’t have all the Brexit answers, but we have all the facilities here to help you out.