Car owners could face a 10% rise in the cost of their car repairs when the UK leaves the European Union without a trade deal – with the overall bill of repairs in Britain possibly reaching the lofty heights of £2Billion due to tariffs as a result of hard Brexit.
The prediction comes after a variety of industries look set to be affected by this, speaking about the motor trade, the chief executive of SMMT, Mike Hawes said: “If we don’t secure a new trading relationship with the EU that is free of tariffs and customs checks, British consumers could face significant increases to their annual car repair bill due to new tariffs and other trade barriers.”
“The Government must now prioritise an interim arrangement that maintains single market and customs union membership until the right trade deal with the EU is implemented.”
Meanwhile, quotas, replacement parts, subsidies, customs delays and regulatory barriers could add an additional costs – resulting in a £2.14bn rise in the UK’s collective car maintenance bill.
The SMMT said: “Some 80% of replacement car parts fitted to British cars are imported, with almost three-quarters of these coming from EU-based suppliers. However, the manufacture of components in the UK is growing, making the risk of tariffs on British products sold in Europe and other key global markets another major concern.”
“Until then, uncertainty will likely remain high on what the transitional deal might involve, as UK ministers have not yet discussed this in any depth.
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