Accountancy group UHY Hacker Young claims that the post-Brexit rise in the cost of cars may have started, with lease prices up 8% in the space of just two months.
UHY said that the average cost of leasing popular consumer car models has risen from £245.70 to £264.70, as post-Brexit inflationary pressures begin to filter through to consumers.
Sterling’s sharp fall against the euro and the dollar has been blamed for the change – pushing up the cost of imports.
There are also fears that the mounting financial pressure being placed upon consumers could grow going forward as existing supply contracts come to an end and manufacturers are forced to agree a new set of prices based on a new, much lower value of sterling.
Of the car models looked at by UHY, significant fluctuations were noted as manufacturers adjust their discount and end of contract residual value estimates.
Of the 10 vehicles monitored, five had increased in price according to UHY's analysis of a monthly PCH offer, four showed no change and just one had reduced in price.
Details of the results are revealed here:
Paul Daly, partner at UHY Hacker Young, said: “It appears that Brexit, and the resulting fall in the value of sterling, has begun to place pressure on vehicle manufacturers and their distribution channels, forcing them to shift costs onto consumers. So far it is a small increase but a noticeable increase.”
He added: “Further cost rises could occur as the cost of components produced overseas ratchets up. It is unlikely that the pain will be limited to the supply chain.
“For consumers, monthly payments are affordable as a result of interest rates remaining at historical lows and heavy discounting.
“As this level of discounting is expected to fall as post Brexit pricing kicks in, the maintenance of strong residual values is absolutely critical to ensuring that monthly payments for vehicles remain affordable.”
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