BREXIT - The impact on importing cars?

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?

First Up

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

What's not to like?

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

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.

Lellostag

Je_suis_Jean wrote: »

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!)!

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?

Quazzie

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

colm_mcm

http://www.boards.ie/vbulletin/showthread.php?p=98818692

CiniO

Duke O Smiley wrote: »

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.

Duke O Smiley

colm_mcm wrote: »

http://www.boards.ie/vbulletin/showthread.php?p=98818692

Ah

Don't mind me so

Mods do close

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...

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.

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.

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.

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.

Charles Babbage

Bring back the Triptyque!!

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

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.

jackinthemix94

Jimmy Garlic wrote: »

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.

Jimmy Garlic

jackinthemix94 wrote: »

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.

deco nate

jackinthemix94 wrote: »

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

JohnBoy26

jackinthemix94 wrote: »

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.

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

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.

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.

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.

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.

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??

Mister Jingles

Yes

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

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.

philstar

and how about VRT is there a legal loophole....buying a car from a country thats outside the EU??

is VRT relevant in such a case?

drunkmonkey

It could go to parity yet 1 for 1, it's way to early to tell, sterling was going well probably at full value, it's going to take a hammering. US and Euro markets yet to open today probably have a better idea later today, it's a gamble today could be the day to buy as the swings are massive or you could hold tight and hope sterling collapses.

drunkmonkey

philstar wrote: »

and how about VRT is there a legal loophole....buying a car from a country thats outside the EU??

Oh Jazus, vat+Vrt

goochy

With sterling after dropping after result , it will make it cheaper to import a car now but what will happen when the offically leave ?

buzzing147

Think positive..maybe this brexit carry on will mean vrt will be set at 400euro, instead of 4000euro, ah one can dream!
Hopefully not too damaging because i wouldnt buy a car in an irish dealership, usually a lot less spec and way overpriced, yet the salesmen still explains how great this 141,000 miles car is....

Del2005

goochy wrote: »

With sterling after dropping after result , it will make it cheaper to import a car now but what will happen when the offically leave ?

More taxes when they leave. You'll have to pay VAT on the landed cost, including ferry, and then VRT.

Caliden

I sincerely doubt VRT rates will drop overnight once they officially leave.

Once they do leave it seems that customs will also need to be paid on top of VRT.

millington

philstar wrote: »

and how about VRT is there a legal loophole....buying a car from a country thats outside the EU??

is VRT relevant in such a case?

VRT has nothing got to do with the EU

When the UK leaves, there will be 10% customs, 23% VAT and VRT on any imported UK cars

maximum12

millington wrote: »

When the UK leaves, there will be 10% customs, 23% VAT and VRT on any imported UK cars

Neither you or anyone else has any idea what will happen if/when the UK leaves the EU.

Extremely unlikely they will be out within 2 years due to the legal complexities.

The only thing we know is that Sterling has fallen so UK cars are cheaper today than they were yesterday.

colm_mcm

Fallen but not crashed, down 6% or something, on the day this is announced.

jelutong

Duke O Smiley wrote: »

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?

Time to go L.H drive perhaps?

Del2005

maximum12 wrote: »

Neither you or anyone else has any idea what will happen if/when the UK leaves the EU.

Extremely unlikely they will be out within 2 years due to the legal complexities.

The only thing we know is that Sterling has fallen so UK cars are cheaper today than they were yesterday.

We know that there are import duties and VAT on items imported from outside the EU. We know that the UK wants to restrict EU citizens right to work in the UK. We know that Switzerland is not in the EU and that we have duty free allowances when travelling there and when they tried to impose restrictions on EU citizens right to travel they were told in no uncertain words that you can't pick and choose which parts of the EU principles you implement.

So for the next 2 years we've no idea what's going to happen, there might not be a UK then, but once they leave there will be extra taxes on UK imports unless they do the exact opposite of why they voted to leave.

Mr. Farage

The days of importing cheap(er) cars and motorbikes from the UK are over. The UK is out and you might as well be bringing in a motor from India.

maximum12

Del2005 wrote: »

We know that there are import duties and VAT on items imported from outside the EU.

There's no VAT on goods imported from outside the EU.

Import duties are not blanket duties on all goods. Entirely plausible that UK-EU would agree not to apply duties to the movement of cars.

bear1

Duke O Smiley wrote: »

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?

Malta and Cyprus drive on the left.

shietpilot

Well if dealers start importing cars from mainland Europe maybe it's a good chance to switch over to LHD cars in Ireland?

bazz26

Not going to happen, more involved in changing than there would be to benefit from it.

Marcusm

drunkmonkey wrote: »

It could go to parity yet 1 for 1, it's way to early to tell, sterling was going well probably at full value, it's going to take a hammering. US and Euro markets yet to open today probably have a better idea later today, it's a gamble today could be the day to buy as the swings are massive or you could hold tight and hope sterling collapses.

Currency markets are 24hours globally traded. GBP rose to 1.30 at 10pm in expectation of a Remain win. When Sunderland result came in, it dropped close to 1.20 and has since recovered to 1.24 or so. This is still within the range for earlier this year.

Market participants are more bearish on the EUR side of the trade with some predicting 1.35-1.4 by 2017. The problem is that while the uncertainty is negative for GBP, it now introduces greater instability within Euro zone as a whole - both political and currency instability.

ei9go

Maybe a lot of people don't remember importing goods from the UK before the single market.

When you bought mail order, you didn't pay UK vat so paid 17.5% less for the item.

Mostly you got away with not paying the Irish VAT so it was a huge win.

millington

maximum12 wrote: »

Neither you or anyone else has any idea what will happen if/when the UK leaves the EU.

Extremely unlikely they will be out within 2 years due to the legal complexities.

The only thing we know is that Sterling has fallen so UK cars are cheaper today than they were yesterday.

Yes today they're cheaper but assuming they actually leave and are to be treated like any other non-EU country, there will be 10% customs duty & 23% VAT on cars.

maximum12 wrote: »

There's no VAT on goods imported from outside the EU.

Yes there is that is just 100% incorrect.