Are New Car Prices set to Increase?

Kwik Fit have just published a report that may suggest an increase in the prices of new cars in the upcoming year due to the uncertainty revolving around Brexit negotiations.

Indeed, Kwik Fit have just revealed that 57% of UK motorists are anticipating an increase in the price of new cars once Brexit negotiations have officially been concluded. It has also been revealed that 17% of those surveyed expected price increases to be dramatic. On the other hand, only 3% of those asked in the survey thought that prices of new cars would actually decrease as a result of Brexit.

Now, let’s talk about the used car marketplace – 35% of drivers expect that Brexit will result in an increase in used vehicle prices. Comparatively, 5% expect a decrease in the used car marketplace.

The price of new and used cars are not the only things in discussion however, 53% of those asked in the survey also expected the price of petrol to increase, alongside the increase in the price of replacement parts (51%), motor insurance (43%) and vehicle servicing (40%).

When it comes to the topic of how Brexit will affect our choice of cars, Kwik Fit found that 71% of drivers stated that Brexit would make no difference in their car buying decision, whilst 13% said that it would influence their decision, as they would be more likely to buy a British-built car.

Roger Griggs, communications director at Kwik Fit, commented: “The cost of motoring is understandably a major concern for people as the country prepares to leave the European Union and this perhaps is one reason for last month’s fall in new car sales. While Brexit may make people think twice about buying brand new, drivers must keep up with maintenance and ensure their car is safe to drive and running efficiently.

“For anyone opting to buy a used car, we would urge them to ensure that the previous owners have not skimped on maintenance, as regular servicing will help retain the car’s value in the long term, as well as keeping running costs lower day to day. Whatever Brexit brings, we will always remain focused on helping drivers make their motoring budget go as far as possible”.