Cap HPI working with manufacturers to account for possible no-deal Brexit price changes
04 November 2020
Author: Sean Keywood
Vehicle data firm Cap HPI says it is prepared to handle any large volume shifts in pricing from manufacturers that may arise in the event of a no-deal Brexit.
It says it is working with manufacturers on potential changes, and that new pricing data would be available through its system from 1 January.
Cap HPI says that if a no-deal Brexit occurs, the impact of potential tariffs will be significant, with manufacturers having to amend vehicle and option prices to take them into account.
It says any pricing changes could be visible earlier than 1 January if manufacturers allowed, with changes on a model range by model range basis.
Cap HPI head of vehicle identification Jon Clay said: "The team at Cap HPI has worked diligently with partners to ensure the new vehicle data systems are prepared for any eventuality.
"If a no-deal Brexit is enforced, Cap HPI has ensured it has the teams in place to process the data supplied in an agreed format with the manufacturers."
Cap HPI says it is also prepared to offer guidance on the potential impact of Brexit on used car values.
Head of forecast UK Andrew Mee said: "As yet there is no evidence that Brexit concerns are having a negative effect on used car values. An outcome that sees tariffs on new cars may result in a reduction in new cars sales, which would be good news for used values.
"In the short term, higher new car prices may pull up some used prices, especially for newer cars. However, used values are still likely to fall during 2021 as the negative impact of coronavirus on consumer confidence (which could be worsened if Brexit has further negative impact on GDP and unemployment) is likely to outweigh the positive impact of higher new prices."
Mee added that looking further ahead, reduced supply to the used market was expected to have an impact.
He said: "In the longer term, say from three years into the future, the reduction in used supply should help lift used values, which by then we expect will have recovered from the coronavirus impact.
"We will not be altering our future value forecasts until we know for certain that tariffs are being introduced, how long they might last for, and post-Brexit economic forecasts are updated, so that we can fully assess the broader picture."