Here at Applied Leasing, we want to ensure you are kept in the loop with regards to industry changes.
With the year being so dominated with news of COVID-19 and the struggles both businesses and individuals continue to face, it is easy to have overlooked another suppressing matter which is Brexit.
When the UK left the EU on the 30th January 2020, we were given a transitional period to allow negotiations with the EU over our exit strategy. The one area that affects our industry massively, is the import of vehicles to the UK. The transition period will expire at the end of December and with no deal currently in place, the country faces huge uncertainty as to what will happen come January 2021.
There have been many discussions with lenders and manufactures with regards to their stance should import tariffs increase as of January, however, at the moment, all but a few manufactures, are yet to confirm their intentions should there be a no deal.
What does this mean for you?
If your vehicle does not arrive within the UK by the end of December, there is the possibility a 10% import tariff could be applied to your vehicle. Should this happen, the dealer would likely pass this onto the lender who in turn, would pass this onto yourself.
This would mean your vehicle would need to be re-quoted and the finance rentals/initial rental would increase.
Obviously, until we obtain the stance of all of the manufacturers as well as the finance companies, it’s very difficult to provide any confirmation as to what will happen, however, we wanted to reiterate the above, which would have been advised at the point of order when our sales support team went through your order.
What are my options should I not want to pay more?
We currently have many stock vehicles available. These vehicles are a mixture of ‘pre-registered’ and ‘unregistered’ vehicles, already within the UK, which would not be subject to import tariff increases.
Although we aren’t certain at this stage as to whether there would be cost increases as a result of a ‘No Deal’, we could implement clause 2.6/2.7 in our terms and conditions and switch your order to something available from stock (see below for terms 2.6 & 2.7)
2.6 In the event that the manufacturer or the leasing company no longer has the Vehicle available for the price on which the Contract is based, AL retains the right to change the price set out in the Contract. AL will notify the Customer of any such change to the price and if the change is not agreed the Customer may cancel the Contract by notifying AL in writing within 3 days of receiving notice of the price increase and, subject to clause 2.7 the Fee shall be retained by AL for services to date, such as sourcing and ordering the vehicle. The ‘Holding Deposit’ shall be refunded to the Customer within 7 days of receiving such notice of cancellation.
2.7 In the event that the Customer cancels the Contract in accordance with clause 2.6 but places a new Order with AL within 7 days of such cancellation the ‘Sourcing Fee’ and the ‘Holding Deposit’ shall be held by AL as the Fee and the Deposit in respect of the new Order.
Stock vehicles are within our website and can be differentiated by looking for the green ‘In Stock’ tab which is shown below the image of the vehicle.
Our latest car leasing special offers (appliedleasing.co.uk)
Of course, if there’s a price you like the look of, which doesn’t have the ‘In Stock’ tab showing on the advert, please don’t hesitate to call or email us and we will be happy to check with our network of suppliers to see if something suitable can be located.
We do not want this blog post to scare you. Instead, we want to pass on the information we have at this stage to allow you to make an informed decision.
Recent news has advised, negotiations are continuing, following Boris Johnsons meet with Ursula Von der Leyen ‘EU Commission President’. A further date has been set a ‘point of finality’ which we believe to be Sunday 13th December 2020. Once we’re aware of this information, we will be asking both the lenders and the manufactures as to what their stance will be and then relaying this information back.
Obviously, this blog is directed at the customers who have orders placed with Applied Leasing, however, it will also be applicable should you have a vehicle ordered elsewhere that won’t arrive in the UK by the 31st December.
If you have any queries or would like to discuss an alternative stock vehicle, please contact our freephone number on 0800 525209 and one of our team will be more than happy to discuss this with you.
