28 Jul 2017 | 05.07 pm
Brexit Effect Boosts Used Car Imports
Analysis from Fexco Corporate Payments
28 Jul 2017 | 05.07 pm
Brexit effects are boosting the number of cars imported from Britain, with the number of drivers here buying imports from the UK more than doubling in one year in response to the weaker pound and the euro’s strength.
An analysis carried out by FEXCO Corporate Payments mirrors official data which shows used car imports are now running at 7,500 a month, 2,000 more than at the same time in 2016.
The analysis, of 2,000 transactions made through FEXCO shows that by the end of June individual Irish car buyers had spent 134% more on importing used cars from the UK than they did in the first six months of 2016, and the number of people buying cars from the UK also more than doubled.
The data reveals the average transaction value increasing by a third from €9,130 in H1 2016 to €12,070 this year.
To give an example of the price differential, the company’s researchers identified two comparable used cars for sale at garages in London and Dublin. A silver 2008 BMW 3 Series M Sport costs £9,995 (€11,318) in the UK according to the AA, while a similar model of the same age is being advertised in Dublin for €13,950.
FEXCO head of dealing David Lamb said: “One of the legacies of Ireland’s recession is that there is a shortage of used cars of a certain age as so few new vehicles were bought during the lean years.
“The UK has a far greater supply of used cars but the cost and red tape involved in importing into Ireland has traditionally put off all but professional or the most committed individual buyers. But all that changed with the abrupt fall in the pound unleashed by Britain’s vote for Brexit.
“One year on from the referendum, Irish car buyers – both individuals and garages – are queuing up to capitalise on sterling’s weakness by importing cars from the UK. This trend is set to continue as the Euro strengthened further against the Pound in May, June and in the first half of July.
“Sterling has lost ground steadily this summer and remains below the trough it reached in the immediate aftermath of the Brexit vote, meaning Irish buyers planning to import a car from the UK should consider locking in the current favourable exchange rate by using a forward contract.”