Car buyers in the UK have not been daunted by deciding to leave the European Union says CEO of Marshall Motors

Car buyers in the UK are not discouraged by the decision to leave the European Union and they are still buying new cars with the same confidence as they were before the Brexit.

Mr Gupta, chief executive officer of one of the largest dealerships in the UK, Marshall Motors, talking to the media said that the new financing packages in the new car market where UK is not the part of the European Union; installments insulate more buyers than any price hike. People still love to buy new cars with powerful engines.

Why was a price hike expected?

After the Brexit vote, the UK faced a volatile environment in the stock exchange and the value of the Pound Sterling has decreased by more than 10 percent in days after Brexit. There are number of car manufacturers who warned that the currency value shifts can cause a hike in the prices as per unit cost of manufacturing has increased as a result of Brexit vote but customers are not afraid and they believe that their decision was not wrong.

However, manufacturers have warned that the situation will force them to go for a change in prices in the long run.

Who has already increased the prices?

Peugeot Citroen PSA has decided to increase the prices by two to three percent in August and on the other hand Renault and Fiat have also warned that they are also looking to increase the prices in the UK market for both petrol and diesel vehicles. They are not afraid of these warnings because they buy cars using the personal contract purchases system in the UK.

Who is Marshall Motors?

Marshall Motors is the largest chain of dealerships across the UK and you can imagine the size of this group by knowing that every 4 out of 5 new cars bought in the UK comes through this group and they manage more than 26 brands in the UK as well offer personal contract purchases to facilitate their customers.

How personal contract purchases help?

Actually, majority of people use fixed monthly payments and this method helps them to decide on buying new cars and always be able to buy any kind of vehicle any time. It is not been noticed since the Brexit vote that people feel squeezed of the change and are not willing to buy new cars. In the used cars and reconditioned engines and parts segment, there is a bit of pressure and it is too early to say that it is a big change because these segments don’t have any financing options.

Demands for the new cars across the UK hit a new record at the start of the year but after the Brexit referendum, an uncertain condition was noticed, according to the Society of Motor Manufacturers and Traders. The society mentioned that they have recorded 1.4 million new registrations in the first six months of 2016.