S J Kingston Classics, Bristol Road, Congresbury, Bristol, BS49 5AQ
In recent months we have seen countless articles and interviews discussing the pros and cons of the Brexit and the impact it could have on the economy and our way of life in the UK.
We have already seen the FTSE wobble and shares in the UK property market have been falling over the last couple of months.
However, one area that has been overlooked is just how the Brexit will affect the classic car market.
Currently a private individual looking to import a car from the EU won’t have to pay VAT or any customs duty upon arrival, with the only cost other than transportation being the £55 fee to register the car in the UK.
In comparison, an individual looking to import a vehicle from outside the EU will have to pay VAT alongside a 10% duty on the value of the car, a hefty fee for the enthusiast not looking to immediately profit. If we were to leave the EU it could be the beginning of some hefty import taxes.
The lack of free movement across the EU could increase the price of classic British vehicles as buyers in mainland Europe struggle to pay the costs of the extra taxes. Possibly leading to demand outweighing supply for British classics across the EU and therefore increasing values.
Since the announcement of the referendum we have seen the pound falling, this is not good news at all for those looking to bring a car over from the EU as the costs of importing goods increases. However, on the other hand those looking to export cars can benefit from selling cars for an increased profit margin.
Although there may be positives for exporters, Britain’s exit from the EU will certainly cause massive disruption to the balance of the classic car market across Europe.