We recently wrote about what Brexit would mean if you were looking for a new vehicle, whether it was a lease car or one to purchase however this was before the new UK-EU trade deal was agreed.
As there is now a deal in place we’ve taken a look at the points we covered again to give you up to date and accurate information.
Within this new trade deal, the EU and UK have agreed to zero tariffs and quotas on the import and export of trade goods, which includes vehicles and parts.
However, in order to qualify for tariff-free access to each market companies will need to meet Rules of Origin requirements which set a bar for how much of a particular good can be made outside of the EU or UK.
The Rules of Origin state that:
- Petrol and diesel cars need to be made with at least 55% local (EU or UK depending on where the exporting company is based) content.
- Electric and hybrid vehicles will need to be made with at least 40% local materials until 2023, then between 2024 and 2026 this will increase to 45%. In 2024 both governments will review the 2027 onwards thresholds.
- Batteries for electric and hybrid vehicles will need to be made with at least 30% local content until 2023, and then between 2024 and 2026 50%. Further thresholds will also be reviewed in 2024.
The EU and UK have also agreed for additional flexibility in collecting the documentation and evidence to prove origin during this first year, which was to allow for the limited time available between the agreement being completed and then being put in place.
Getting a New Car Now the UK Has Left the EU
What this means for customers looking for a new car is that you can still purchase or lease a vehicle and there will not be an import tariff on it. This means that there will not be any changes due to Brexit in prices, whether you are looking to purchase or lease a vehicle.
We will continue to work with all our funders to get you the very best leasing deals and you can see our top offers here or you can speak to one of our Leasing Consultants on 0330 221 000.
We also work with a wide network of dealers across the UK so we can offer you vehicles that are in stock, for quicker delivery turn around, and offer factory order vehicles that are tailored to your requirements.
Maintenance and Servicing
As vehicle parts are also included in the agreement between the EU and the UK you should not see much movement in price on these from Brexit.
This means you should still be able to get any maintenance, servicing or repairs required without difficulty.
Driving in the EU
We also recently wrote about the latest guidance for driving in the EU as well and the government have now confirmed the advice they were providing to drivers that they will need to carry a Green Card.
This is an international certificate of motor insurance and you will need to get a physical copy of this from your insurance provider before you travel. Electronic copies will not be accepted so you should get in contact with your insurance provider in plenty of time for them to provide these documents. The government advise contacting them six weeks in advance, though many providers should be able to post documents to you in less time so you should contact yours directly to confirm their timescale.
If you plan on taking a trailer or caravan then this will need to have a separate green card certificate as well. In some countries you might also need separate trailer insurance.
Whether you are taking a commercial or non-commercial trailer you will need to register it in order to be able to legally take it into most EU countries. You can find out more about this on the government’s website.
You might also need multiple green cards if you have two policies during your trip, for example if your insurance policy renews during your dates of travel.
If you have fleet or multi-car insurance you will need a green card for each vehicle.
It is important that you have the necessary green cards, as these are not only needed if you are involved in an accident, you might also need to show them at police checks and border crossings.
Vehicle Documentation
As well as insurance documents you will also need to take a copy of your V5C, the vehicle log book, or if you are leasing a VE103 form. For more information on travelling with a lease vehicle take a look at this guide which breaks the process down for each of our funders.
Please note that some funders require up to six weeks’ notice to ensure the paperwork reaches you prior to your departure date.
GB Stickers
You will not need to have a GB sticker in most EU countries if you have a number plate which includes the GB identifier, whether on its own or with the union flag. However, if you’re in Spain, Cyprus or Malta you will need a sticker even if your number plate has the GB identifier.
For drivers whose number plate has:
- A Euro symbol
- A national flag of England, Scotland or Wales
- No flag or identifier
You will need to purchase a GB sticker to display in the rear of your vehicle.
If you are planning on towing any trailer or caravan then this will also need a sticker.
Driving Licence and Permits
When travelling if you plan on driving you will also need to take your UK driving licence. You should not need an international driving permit (IDP) to drive whilst visiting the EU, Switzerland, Iceland or Lichtenstein.
However, you might need an IDP in some EU countries and Norway if you still have a paper driving licence or your licence was issued in Gibraltar, Guernsey, Jersey or the Isle of Man.
You can check if you’ll need an IDP here.
Please note that UK driving licence holders will not need an IDP to drive in Ireland.
If you have any questions about taking your lease vehicle abroad then please do not hesitate to contact our Customer Services Team on 0330 221 0000.
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