FLEETS face the prospect of a significant change in new vehicle data if there is a no-deal Brexit outcome.
The vehicle data provider cap hpi says it is preparing to handle large volume shifts in pricing from manufacturers should a no-deal scenario arise
The company says that it is currently working with OEMs on the scenarios relating to the potential changes. Where car 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.
cap hpi said the data would be available from 01 January to ensure vehicles can be priced accurately and leased at the correct monthly rentals.
No-Deal Tariff Rise
In the event of a no-deal, tariffs will come into force on 01 January 2021, which will have a significant effect on vehicle pricing. Car makers will be required to amend their vehicle and options prices to take these tariffs into account.
Jon Clay, Head of Vehicle Identification, 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.
Potential Impact Of No-Deal Brexit On Used Values
cap hpi is also offering 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 three 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.
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