October 1, 2016, 12:45 am
As the UK prepares to leave the European Union (EU), people are discussing the many ways the move will affect numerous sectors of the economy. Several motoring topics tend to arise in these discussions. Will cars become more expensive? Will gas prices soar?
Though nothing can be known absolutely for certain, experts have been weighing in with their theories of what will occur. After researching some trusted resources, some likely scenarios come to light.
While some people have suggested that car prices may rise after Brexit, experts point out that the auto industry is too competitive for companies to pass any added costs to the consumers. Therefore, the price for cars is likely to remain stable. As for used cars, the general feeling is that buying used cars will continue to be an excellent value for car buyers.
Before the UK joined the European Union, car insurance companies commonly charged women lower rates than they did for men. Insurance companies view female drivers as lower risk. However, the EU imposed a rule that insurance policy prices had to be gender neutral. This required insurance companies in the UK to charge women drivers higher prices to match those that men are paying. After Brexit, some experts speculate that insurance companies may abandon the gender-neutral pricing and return to giving women a fair price based on risk.
Fuel costs are another hot topic in Brexit discussions. The UK is already one of the more expensive countries in Europe with regards to fuel prices. The prices fluctuate based on changing costs of importing fuel. Petrol prices will continue to fluctuate. Many experts agree that Brexit is likely to cause a rise in the prices, though the degree of change to expect is still debated.
Several finance experts are expecting the Bank of England to lower interest rates in the coming months. This move would be to stimulate the economy and counteract the effects of Brexit. A lower interest rate is good news for car buyers who want to find a good deal for financing. The low interest rate allows consumers to get lower monthly payments.
It’s important to point out that the result of the Brexit vote on 23 June 2016 was the beginning of a rather lengthy process of leaving the EU. The actual severing of ties to the EU could take several years. A lot of work must be done for the UK to extricate itself from the EU while negotiating advantageous trade deals.
The examination of the facts and expert opinions about how Brexit will affect UK motoring helps to assuage any fears of rampant changes resulting in empty wallets. Brexit will cause some changes, but the average car shopper is unlikely to be negatively impacted by Brexit.
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