cap hpi preparing for no-deal Brexit
cap hpi, the UK’s leading provider of new vehicle data, is prepared to handle any large volume shifts in pricing from manufacturers that may arise from a no-deal scenario.
Manufacturers are working with cap hpi on the scenarios relating to the potential charges and where the manufacturers have used the cap hpi template, the new pricing change data will be ready in cap hpi’s system and visible in the event of a no deal Brexit.
Data will be available from 1st January to ensure fleets can continue to price vehicles accurately and easily.
Despite the Government’s target date of 31st October for a final decision, negotiations appear to be ongoing, If the protracted discussions end in a no deal and no further talks are agreed, tariffs will come into force on 1st January 2021.
The impact is significant with vehicle manufacturers having to amend their vehicle and options prices to take these tariffs into account.
Jon Clay, head of vehicle identification at cap hpi said: “The team at cap hpi has worked diligently with partners to ensure the new vehicle data systems are prepared for any eventuality. If a no-deal Brexit is enforced, cap hpi has ensured it has the teams in place to process the data supplied in an agreed format with the manufacturers.”
Vehicle manufacturers have been working closely with cap hpi on a wide range of scenarios for some time to ensure a smooth transition for customers. Any pricing changes will start to be visible as early as the manufacturer allows, but most likely changing from 1 January. The changes will be made on a model range by range basis.
Experts at cap hpi have offered guidance on the potential impact of Brexit on used car values.
Andrew Mee, head of forecast UK at cap hpi, said: “As yet there is no evidence that Brexit concerns are having a negative effect on used car values. An outcome that sees tariffs on new cars may result in a reduction in new cars sales, which would be good news for used values. In the short term, higher new car prices may pull up some used prices, especially for newer cars. However, used values are still likely to fall during 2021 as the negative impact of Coronavirus on consumer confidence (which could be worsened if Brexit has further negative impact on GDP and unemployment) is likely to outweigh the positive impact of higher new prices. In the longer term, say from 3 years into the future, the reduction in used supply should help lift used values, which by then we expect will have recovered from the Coronavirus impact.
We will not be altering our future value forecasts until we know for certain that tariffs are being introduced, how long they might last for, and post Brexit economic forecasts are updated, so that we can fully assess the broader picture.