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Car prices are set to increase as firms will be hit with a 10 percent import tariff on their models which will drive up costs. It means family models such as the Ford Fiesta could increase by just over £1,000 in value while more lucrative models could see shaper rises up to £1,500.
The increase will be even more destructive for premium models with costs set to soar.
A brand new BMW X5 SUV model could increase in value by over £3,700 if a 6.3 percent increase is applied.
Analysis by Which? has revealed that overall costs would rise by around £1,800 on average but this will vary between models.
Costs are only set to increase by over six percent instead of the full 10 percent due to how the tariffs are applied
Import tariffs are levied on the custom price of a vehicle at the time of import rather than the final price of the sale which could end up being much higher.
Speaking to Express.co.uk, Harry Rose, Editor of Which? Magazine, said: “With a no-deal Brexit looming and the threat of price hikes of between £1,500 and the best part of £4,000, we’ve found car buyers could be in for a nasty shock after December 31st.
“Even if a deal is reached, this doesn’t necessarily mean prices won’t rise, so if you are in the market for a new car make sure you complete the purchase soon if you want to minimise what you pay.”
American based Ford has confirmed it will price-protect car orders placed before the UK leaves the transition period.
However, in a no-deal scenario, they have confirmed that prices for Ford’s most popular cars would rise by “between £1,000 and £2,000”.
The company has revealed it would provide more details “if or when the situation dictates” to keep customers fully updated.
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Vauxhall, Peugeot, Citroen and DS
The four firms have confirmed that any additional duty “will be passed on to customers” in a major blow to prospective buyers.
They reveal that cars already based in the UK will be “price-protected” but models still abroad will be subjected to extra charges.
Unlike many other firms, Honda has revealed to Which? that the firm “are not immediately putting up prices after Brexit”.
Instead, the Japanese Firm has promised to “periodically review prices in liner with the marketplace”.
As Honda is based outside the EU they already pay 10 percent tariffs on models coming into the UK.
However, a new UK trade deal signed with the nation will mean that car manufacturers would benefit from reduced tariffs on some parts.
Audi, Seat, Skoda and Volkswagen
Volkswagen’s four car brands have confirmed they “may need to adjust prices” and will “continue to monitor” any changes.
The models are mostly imported from the continent and the firm are focused to ensure “continuity of operations” if there are delivery delays and border distraction come the new year.
Both Toyota and Lexus have confirmed they will apply price-protection to all customers who have ordered vehicles prior to a no-deal outcome.
Toyota models are popular in the UK with the Yaris model the 10th best selling vehicle in the UK.
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