What Brexit means for driving in Europe
On the 23rd June, Britain voted to leave the EU in a referendum, to the result of 51.9%. This will have profound changes to how everything is done, but we will have to wait at least two years before Britain does exit the EU.
Fuel prices
Just to stay at home for now, the referendum result has resulted in a drop in the value of Pound Sterling to the US Dollar. Now considering the price of fuel in done in dollars, this has resulted in the cost of fuel to rise. Whilst this may not be of huge concern, it is something to watch out for.
Cost of cars
Before the vote, the sales of cars in the UK were healthy and many of the manufacturers recommended remaining in Europe. The reason was obvious. By being in the EU and the Single Market, British based manufacturers had access to a large export market. With the result being to leave, this arrangement is now under threat.
Depending upon the final trade agreement, we could see restrictions introduced on raw materials and components imported for use, which could then drive up costs in British motor manufacturing. These could then result in more expensive vehicles for British drivers.
We could also see tariffs places upon the sales of cars when Brexit occurs. Again this will raise the costs for those looking to buy a new car after the exit. This could be an opportune time to get a new car in car finance to avoid the rise in car costs before the real changes come in.
Driving abroad
After Brexit, we will likely see the introduction of additional Custom controls at ports. This will most likely lead to additional delays on both sides of the channel. However, once you enter the passport-free Schengen area, you should have no trouble crossing into different countries. Schengen area stretches across 26 states from Norway to Malta. Your stay however, could be limited by visas.
Insurance costs
Before 2012, insurance companies were allowed to take gender into account when offering insurance premiums. This was because male drivers were considered higher risk, so it resulted in them having higher premiums and women having lower ones.
However, in 2012 the European Court of Justice ruled that insurance companies could no longer take gender into account. This led to a drop in insurance prices for men and an increase for women. With Britain leaving the EU and therefore the jurisdiction of the ECJ, it is unknown whether that decision will remain in place.
Watch out for any signs of the changes mentioned above. In the next two years, there will be many changes to how Britain and the EU deal with each other when it comes to drivers. If you are concerned about the rising cost of cars in the future, it might be a safe option to go for a new car now. There are a variety of great PCP car finance deals on almost every car available right now.
