BROKERS using cap hpi data should be prepared for a significant change in new vehicle data should there be a no-deal Brexit.
cap hpi says it is preparing to handle large volume pricing shifts in a no-deal situation.
The data provider says it is currently working with OEMs on the scenarios relating to the potential changes. It says that where car manufacturers have used the cap hpi template, the new pricing change data will be ready in cap hpi’s system and visible in the event of a no-deal Brexit.
cap hpi says the data would be available from 01 January to ensure vehicles and option prices can be priced accurately if tariffs are applied .
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.
Jon Clay (pictured above), head of vehicle identification, cap hpi
Potential impact of a no-deal Brexit on used values
cap hpi is also offering guidance on the potential impact of Brexit on used car values.
Andrew Mee, head of forecast UK at cap hpi, 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. 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.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
