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RichD1

post-Brexit and BM car prices

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What do you guys think will happen to German car prices post-Brexit.

 

Richard

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Hi,

 

They might go up.

They might stay as they are.

They might go down.

 

Given that the UK currently looks as though it'll leave with 'no deal', then there's a higher chance the prices will increase. It's also most likely many/most other imported items/products will also increase in price.

 

Cheers, Dennis!

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Don't you think the likes of Merc, BMW, Porsche, VAG will be putting pressure on Merkel to get a good deal. The UK most be quite a sizeable market for them.

 

Richard

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Hmm, who else are they worried we will buy cars from that dont rely on an existing EU trade agreement? Honestly, im not sure. 

 

The main impact will be price increases in the event of no deal to take account of WTO taxes. 

 

They're probably equally or more worried about how badly screwed the uk economy would be if there is no deal. Not to mention their own supply issues alongside taxes etc. 

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Hi,

 

The UK as of 2017 was BMW group's 4th biggest individual market in terms of units sold. 

 

https://www.statista.com/statistics/267252/key-automobile-markets-of-bmw-group/

 

The 'good' deal is what the UK has as part of the EU but now that we're leaving, any deal that is agreed will be worse than what we have now so, chances are the UK market for BMW sales will decrease as per unit price of a car in the UK goes up.

 

China has a massive middle class and they exert considerable influence to car manufacturers - China gets it's own BMW models for it's market only for instance. The USA is the same as well and they have more buyers at the higher pricing levels for their models too, the E60 M5 was offered in manual form there due to demand from loyal/returning M customers. The domestic German market is also larger than the UK which seems quite natural really. 

 

The UK comes in 4th place for an individual country market, sizeable yes, but it's looking likely less units will be sold once more of the impacts of Brexit occur after March 2019. It'll be interesting to see what the unit sales figures are for the UK in 2019/20/21/22. 

 

The massive 'other' figure makes up almost 30% of units sold for BMW,  some of those will be EU countries and plenty will be around the rest of the world. 

 

I'm sure BMW and VAG group, Merc group, Porsche/Lambo/Ferrrari and all other car brands will be carefully evaluating the sales figures for the UK and if sales units are down over many of them, decisions will most likely be taken to reduce operations or withdraw. 

 

The prime minister was in NYC today, saying the UK aims to have the lowest rate of corporation tax in the G20 nations in order to try to get USA investment to come here. Time will tell if it's enough of an incentive ...  as the UK is really..   really going to need it.

 

Cheers, Dennis!

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