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BREXIT - The impact on importing cars?

  • 22-02-2016 9:16pm
    #1
    Registered Users Posts: 7,389 ✭✭✭ 54and56


    Hi all,

    So, with the UK Brexit referendum on June 23rd what impact will it have on the importation of cars and when will any such impact take effect? If the "Leave" campaign win the the UK exits the EU what would the timing be for that? I assume it won't be the next day as trade treaties would have to be terminated and new border arrangements put in place etc but how long would that take?

    One potetial benefit of Brexit (already being felt) is a drop in the value of Sterling which makes UK imports cheaper for us. Sterling dropped almost 2% today which turns a £20,000 car costing €26,180 last Friday into a €25,667 today, a saving of €513.

    If the vote is "yes" sterling might strengthen back up again and if the vote is "no" tariffs could be imposed which could make imports prohibitively expensive.

    Consequently I'm thinking there might be a short window of opportunity whilst Sterling is weak but the UK is still part of the EU to get cars in!!

    Is there any merit in my hypothesis?
    Tagged:


«134567

Comments

  • Registered Users Posts: 14,770 ✭✭✭✭ First Up


    Duty Free when popping over to London or Holyhead! Maybe D/F shops on the border?

    What's not to like?


  • Registered Users Posts: 7,389 ✭✭✭ 54and56


    First Up wrote: »
    Duty Free when popping over to London or Holyhead! Maybe D/F shops on the border?

    What's not to like?

    You always see the positive in everything First Up, you even like the poxy Bernival restaurant on the Oscar Wilde. :P


  • Registered Users Posts: 72,623 ✭✭✭✭ colm_mcm


    Exise duty when importing a car though?
    Even if it goes ahead which it won't, they'd more than likely have a trade agreement like other countries have.


  • Registered Users Posts: 269 ✭✭ Lellostag


    Is there any merit in my hypothesis?

    Yes I would think so, what happens after the vote is hard to predict, but it's unlikely the sterling will drop an awful lot more so soon might be a good time to go for it.

    A friend of mine is planning on doing just that, he's just hoping for the sterling to drop a bit more while searching for the right car over there...

    Then again this is just armchair speculation so it could go either way, as always... ;)

    Good luck if you decide to go for it (you might need it!)!


  • Registered Users Posts: 12,043 ✭✭✭✭ Duke O Smiley


    Firstly this isn't a thread to discuss Brexit in its entirety..there is a thread for that over in the politics forum. Mods I hope you don't mind this thread being started either, just genuinely curious to hear other people's views on this as car enthusiasts.

    So if Britain leaves the EU, Ireland will be the only right hand drive country left in Europe. So of course any car imported from outside of the EU will be liable for VAT, customs duty etc on top of VRT and what have you.

    Will it be the end of UK imports, and will out only market be the home market?

    Will it spell the end of imports into the country and encourage more people to buy more new cars here or will we just see a slight decline in the reams of A4s and Insignias, Passats etc coming in?


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  • Registered Users Posts: 26,916 ✭✭✭✭ Quazzie


    The exchange rate is having more of an effect than Brexit will.


  • Registered Users Posts: 72,623 ✭✭✭✭ colm_mcm




  • Registered Users Posts: 16,041 ✭✭✭✭ CiniO


    So if Britain leaves the EU, Ireland will be the only right hand drive country left in Europe.
    There's still Malta and Cyprus which are part of EU, and are RHD countries. It's not much relevant to car sales here, but we won't be the only one.
    Will it be the end of UK imports, and will out only market be the home market?

    Will it spell the end of imports into the country and encourage more people to buy more new cars here or will we just see a slight decline in the reams of A4s and Insignias, Passats etc coming in?

    If cars imported from UK would need VAT + import duty, then I think most likely market for importing those cars will die.


  • Registered Users Posts: 12,043 ✭✭✭✭ Duke O Smiley


    colm_mcm wrote: »

    Ah

    Don't mind me so

    Mods do close


  • Registered Users Posts: 7,282 ✭✭✭ Supergurrier


    VRT already has pretty much a closed borders effect on cars coming into us anyway so meh

    Gotta protect that massive Irish car manufacturing industry...


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  • Registered Users Posts: 3,646 ✭✭✭ realitykeeper


    I have a question. If trade with the UK is stymied by a brexit, would this lead to an increase in trade (albeit not necessarily enough to replace Britain) with the rest of the EU. If so, would that put the port of Dublin at a slight geographical disadvantage relative to the Port of Cork? The reason I mention this is because the new container terminal in Ringaskiddy, Co Cork will be able to handle even more freight than the existing terminal in Tivoli near Cork City. Also, Cork has good rail and road connectivity with the rest of the country.


  • Registered Users Posts: 12,593 ✭✭✭✭ bear1


    ..what will it mean if you want to import a car?
    Thought came to me that I imagine it will be financially uneconomical as the government charges more for cars bought outside the EU.


  • Banned (with Prison Access) Posts: 1,571 The Sidewards Man


    Less rust buckets coming into the country for one, yes folks not every car is a rust bucket underneath but alot are.


  • Registered Users Posts: 72,623 ✭✭✭✭ colm_mcm


    There would likely be a trade agreement between us and the U.K. as there was before.
    I doubt it will come to that though.


  • Registered Users Posts: 4,342 ✭✭✭ Charles Babbage


    Bring back the Triptyque!!


  • Closed Accounts Posts: 3,268 visual


    Could always import oil burners (petrol) from Japan like we did in the late 90s
    Lots of white cars with smokey exhausts

    As England never adopted the euro and we always had trade agreements with England our biggest trading partner it woild have very little difference other than varying exchange rates


  • Registered Users Posts: 4,349 ✭✭✭ Jimmy Garlic


    If the UK leaves we need to do the same. The EU is a millstone around our collective necks that has taken more that it has given. F it. We don't need it.


  • Closed Accounts Posts: 293 ✭✭ jackinthemix94


    If the UK leaves we need to do the same. The EU is a millstone around our collective necks that has taken more that it has given. F it. We don't need it.

    LOL I understand why the Brits want to leave - Ireland on the other hand has done remarkably well out of it.


  • Registered Users Posts: 4,349 ✭✭✭ Jimmy Garlic


    LOL I understand why the Brits want to leave - Ireland on the other hand has done remarkably well out of it.

    A well cultivated myth. What we got from the EU wouldn't even cover what was plundered from our fisheries.


  • Closed Accounts Posts: 9,340 ✭✭✭ deco nate


    LOL I understand why the Brits want to leave - Ireland on the other hand has done remarkably well out of it.
    Until a few years ago.. NOW look at us... Paying 40% of the EU debt


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  • Registered Users Posts: 8,548 ✭✭✭ JohnBoy26


    LOL I understand why the Brits want to leave - Ireland on the other hand has done remarkably well out of it.

    I'd love to live in the Ireland you live in, wherever it is.


  • Registered Users Posts: 7,389 ✭✭✭ 54and56


    Please keep the political and economic discussion focused on the possible impact on importing cars from the UK.

    If you want to debate the pro's and con's of EU membership the political forum is that way
    > http://www.boards.ie/vbulletin/forumdisplay.php?f=1728


  • Registered Users Posts: 12,593 ✭✭✭✭ bear1


    I thought the eu said that we wouldn't be able to have any special agreements in place with the UK in the event they left?
    If sterling falls significantly though in case of a yes then id imagine there will be long queues to ferries to get cars.


  • Registered Users Posts: 269 ✭✭ Lellostag


    I don't think it will make any difference at all to Ireland if the UK left the EU, as they no doubt would just revert to being members of EFTA and EEA (like for example Norway) which anyway gives them the same trading rights within the EU as full EU-members and free movement of people and all that, so all in all it is unlikely any trading between the UK and Ireland will be affected adversely, if at all.

    In other words no special agreements will need to be signed or anything like that, it'll be business as usual in that regard.

    The sterling will probably temporarily fall, but so might the euro as if the UK leaves then that will perhaps signal the start of other countries starting to seriously reconsider their membership which in turn will lead to doubts about the viability of the euro in the long run.

    That's just my thoughts on all this.


  • Registered Users Posts: 1,283 ✭✭✭ millington


    I think a lot of people in here are blind to the amount of cars being imported from the UK :eek: almost all small car dealers source their stock from the UK and a lot of private buyers too.

    If the sterling rate stayed the same but there was 10% customs & 23% VAT on UK cars, the market prices in Ireland would skyrocket.


  • Registered Users Posts: 269 ✭✭ Lellostag


    millington wrote: »
    If the sterling rate stayed the same but there was 10% customs & 23% VAT on UK cars, the market prices in Ireland would skyrocket.

    It is though unlikely there will be customs or anything like that just because of Brexit, this as the UK will no doubt become an EFTA and EEA member instead which will give them pretty much exactly the same trading rights as they currently have within the EU.


  • Banned (with Prison Access) Posts: 2,986 philstar


    Is this a good time to buy cars in the uk? after the brexit result?

    will the value of sterling plummet against the euro as a result??


  • Closed Accounts Posts: 2,190 ✭✭✭ Mister Jingles


    Yes


  • Closed Accounts Posts: 1,579 Mr McBoatface


    philstar wrote: »
    Is this a good time to buy cars in the uk? after the brexit result?

    will the value of sterling plummet against the euro as a result??

    Was thinking the same. Expect to see a flood of UK regs at Irish car dealers


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  • Registered Users Posts: 12,590 ✭✭✭✭ R.O.R


    And a loss of value in the car you currently own.

    About 2 years I reckon to bring in a cheap car from the UK, before import tax becomes payable on non-EU imports.

    Hopefully we won't see another huge crash in the Irish car market.


This discussion has been closed.
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