What does the election result mean for car drivers?

It wasn’t the result that the pollsters predicted. With such uncertainty in the air, what does that mean for the UK motorist?

What does the election result mean for car drivers?
It wasn’t the result that the pollsters predicted. With such uncertainty in the air, what does that mean for the UK motorist?

Here are 5 possible ramifications from the election result

#1 Unstable Used Car Prices

Used car values tumbled almost 14% during the last major recession, with prices of large 4x4s suffering the most before recovering as fuel prices eased and car manufacturer brought greener, more tax efficient SUVs to market.

A similar easing in used car values has already started with cars that are 5 years old or more falling more than the highly prized 3 year old stock.

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#2 Fuel Prices
Fuel price will increase as the value of the pound against the dollar sinks, but this could easily bounce back as news of a potential rerun or coalition comes to light. Oil is traded in dollars so any fall in the value in the pound will punish motorists. Luckily for UK drivers, historically low oil prices have shielded us from the low value of sterling.
#3 Diesel Scrappage Scheme

There has been a lot of talk in the press about a diesel scrappage scheme. We called the last scrappage scheme right before it was announced, with over 392,000 drivers benefiting from £2000 towards a newer, cleaner car. It’s ironic that some of these new cars may even be eligible for the latest scheme.

It will be based on emissions and the EURO rating of your car. EU regulations on emissions have slowly been tightened with the latest EURO 6 format bringing ultra-green diesels to market.

Rumblings are that scheme will follow the same format, with a limited amount of money in the pot.

Register now for the latest updates and be ready to claim your rebate before it goes.

#4 Better New Car Deals

March 2017 was the strongest month for new car registrations on record. Changes to vehicle taxation that were due to start on 1st April 2017 meant big road tax price hikes for some cars. Drivers and car brands were particularly motivated to do business with great deals on offer. In contrast April was a very weak month with a near 20% fall in new car registrations followed by an 8% reduction in May.

In the end what this means for consumers is better new car deals to come, especially for finance buyers. If volume reduces car manufacturers incentivise dealers and consumers with lower monthly payments and bigger discounts. No dealer likes new car stock building up on their forecourt.

Just Regit to find the best deals on new and used cars

#5 Increased Pre-Registrations

It’s a little-known fact that dealers don’t tend to pay for their new cars until they are registered. Often they have a 3 month window after the car arrives in stock to sell a car before they have to pay for it.

Once that 3 months is up, it’s either stump up the cash or pay interest on the money outstanding. With the average price of a new car in the UK at around £27,000, it doesn’t take many cars unsold to create a problem.

Manufacturers help dealers (and themselves) as stock builds up by offering additional incentives for dealers to register the car to themselves.

There seems to be some negative connotations around the term ‘pre-registration’, and at Regit we’ve never understood why. Who wants a better deal, on a car in stock that you can drive away today? Everybody?

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