The British electorate’s momentous decision to vote to leave political union with Europe has caused shockwaves across the continent, and left the British economy in a state of uncertainty. Amongst all the debates, little has been made of what Brexit could mean for the average British motorist. British motorists’ experience of driving abroad is expected to change in a myriad of ways.
Below is a run-down of what British car-owners could possibly expect to happen in the next few months and years.
Buying a car could become a lot more expensive.
As in any field of business, the negative shock caused by Brexit has created an uncertain automotive market, which spells bad news for the consumer. Car dealers need stable markets in order to run successful business plans and meet financial targets, so prices of cars are likely to rise as the British government continue to delay triggering Article 50 of the Lisbon Treaty and begin formal negotiation of a trade deal with the European Union. Uncertainty in the market continues until this is done. This is the view held by Rupert Pontin, a Valuation Director at the automotive valuations company, Glass’s Guide. He has said that because Britain is venturing into unchartered political and financial territory, motorists should expect a “period of instability for new and used car sales.”
Filling your car up at the petrol pumps will cost more in the short-term.
The price per litre of petrol and diesel was predicted to sharply spike in the aftermath of Brexit. RAC believe the prices could rise by 5% in the short-term, which will affect those who drive to work every day. This may be short-lived though, as RAC do stress that the market will stabilise itself fairly quickly. But don’t be surprised to see more expensive stops at the garage for the next few months.
Brexit could make driving abroad a lot more expensive and time-consuming
Once Britain has formally left the European Union, holidaymakers can potentially expect lengthy delays when crossing borders of EU countries, as their passports will have to be checked a lot more rigorously than before. Renting cars abroad will also become more costly, as the pound continues to trade at a poor exchange rate against the Euro, which is the currency of 19 out of 28 EU member states.
Car insurance could benefit from the relief of EU regulation
Currently, all car insurance policies have to fall into line with costly regulations imposed by Brussels. Unfortunately, this has been very damaging to smaller insurance companies, and a future of regulation free insurance premiums in the market could see a higher level of competition and insurance premiums going down for motorists in the medium to long-term.
Like everything Brexit, none of these scenarios is certain, but it is certainly possible that you may see some or all of these conditions apply to you in future. Whilst Brexit isn’t necessarily going to be disastrous for British motorists, it is important to understand some of the potential consequences.