The UK officially left the EU on 31 January 2020. However, through the Withdrawal Agreement, EU law continues to apply in the UK until 31 December 2020, after which, EU Treaties, EU free movement rights and the general principles of EU law will no-longer apply to the UK.
The Government published its declaration on 19 October 2019 stating that the UK and EU are keen to create 'a free trade area, combining deep regulatory and customs cooperation, underpinned by provisions ensuring a level playing field for open and fair competition' and that through a Free Trade Agreement, they will ensure 'no tariffs, fees, charges or quantitative restrictions across all sectors with appropriate and modern accompanying rules of origin'.
Negotiations between the UK and the EU are underway
At the start of March 2020, negotiations for the UK-EU future partnership began. Even with the global lockdown due to the Covid-19 pandemic, negotiations continued. However, an agreement is not yet guaranteed and so there is still a chance of a no-deal Brexit. If this is the case, it is expected WTO (World Trade Organisation) and UKGT (UK Global Tariff) arrangements will be applied to the UK, as they are with other countries around the world. This will result in increased import duties being imposed on new vehicles and vehicle parts entering the UK from the EU and elsewhere, as EU member trade agreements would no longer apply to the UK. These new tariffs could result in vehicle prices increasing by at least 10% and vehicle parts increasing by at least 4.5%.
A no-deal Brexit could still occur
If we do leave the EU without a deal, the cost of vehicles imported into the UK after 31 December 2020 is likely to increase, consequently the rental or finance payments, employer National Insurance Contributions (NIC) and employee Benefit-in-Kind (BiK) payments may increase also.
We are committed to supporting our customers, therefore, we are continually monitoring the situation and are in ongoing discussions with all major car manufacturers to fully understand the potential impact of a no-deal Brexit on delivery dates and prices. We will continue to work to ensure customers have as much information about the status of their order and their options as we move towards 31 December 2020.
Information for fleet operators and company vehicle drivers
If your fleet is currently managed by ALD Automotive and you are the main fleet contact, your Account Manager will be more than happy to assist you with any Brexit-related questions you may have.
If you are a company vehicle driver within a fleet managed by ALD Automotive, please contact your fleet administrator directly to discuss any Brexit-related issues.
This web page will be updated on a regular basis with the latest information and announcements relating to Brexit and new vehicle orders, so please check back for any latest announcements or updates.
For more information on Brexit from the Government, please visit https://www.gov.uk/transition.