To buy a car or not to buy a car? Post-Brexit questions

The new and used car market is set to be shaken by the Brexit vote, but it might not be all bad news like you may think

This is not, you will be pleased to hear, in any way a political blog.

What is clear, however, is that the sound Brexit will have an impact on new and used car market.

Despite early predictions of economic apocalypse, the anecdotal evidence coming through from new car dealers that they are as busy as ever.

How long this will last is less certain, and will be mainly driven by the economic confidence of consumers and the reaction of producers to the falling value of the pound.

Brexit: what car makers think?

Now, it is still a buyer's market. Such is the competition for the sale, no one anticipated list price increases as a result of the impending threat of Brexit, even if it is proven that the cost of production and exports or imports have increased.

Instead, the key indicator to watch for is the discount rate, which is at record levels before the sound Brexit. We've not seen much change in the budget for car manufacturers usually three to six months in advance, predict demand and work of their crops.

Thus, incentives (read discount) manufacturers are put in place - largely on the assumption that the UK live in Europe (and the pound remains strong) - are still available, and will be for almost all automakers until at least September, and among the planners long term to the end of the year ,

But if the value of the pound is still low compared with the Euro, the liklihood is that extra margin UK seller once can use to stimulate sales will decline. Or, in other words, bargaining that will no longer satisfying as ever.

the future of Vauxhall in the UK following question Brexit

That is not to say that the bargain hunters have to rush out and buy a car now, though, because there's potentially good news on the way - and the good news like that that may not have a short-term threat attached to it.

It comes in the form of interest rate much discussed and sometimes hang cuts that the Bank of England is rumored to be preparing to introduce. Most of the cars purchased on PCP or PCH lease deals today, and any reduction in interest rates will positively impact on most of the deals.

So you buy now while the discount is strong, gambling on a decline in interest rates earlier and double the savings, or wait and see what comes out in the wash?

This is where we cop out. We are not here to give financial advice. But the good news for car buyers is that there is still good news to be found.

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