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VW promises not to pass on post-Brexit tariffs for cars ordered before the new year

Time 10 months ago

Volkswagen has promised customers it will not pass on post-Brexit tariffs to orders confirmed before 5.30pm on December 31, 2020.

The UK left the European Union on January 31, 2020, but industry body the Society of Motor Manufacturers and Traders (SMMT) has warned an ‘ambitious trade deal’ will be required for British factories to remain competitive. Last year, more than one million cars were built in the UK for export.

If no trade deal is agreed, cars produced here for export, as well as those imported for UK buyers, will face price increases.


As part of Volkswagen Price Protection, any vehicle ordered before the deadline will not be affected by any price increases caused by post-Brexit tariffs when they are finalised in the new year.

The offer excludes electric and plug-in hybrid vehicles, and is only available to retail customers, not including Motability.

The offer coincides with new research from consumer magazine What Car?, which found that 53 per cent of in-market buyers would be more inclined to buy British-built cars if EU-built cars were hit by price increases.

Citing data from the SMMT, What Car? warns that a no-deal scenario could result in a 10 per cent tariff on cars, seeing prices rise by an average of £1,900, or £2,800 for electric vehicles.

In the survey of 1,728 in-market buyers, 34 per cent said they were considering bringing their next car purchase forward to avoid tariffs, while 18 per cent would consider getting a lower trim level to offset the cost.


Steve Huntingford, editor of What Car?, said: ‘Consumers are clearly aware of the financial and logistical implications of a no-deal Brexit on the automotive sector.

‘What the industry urgently needs, as it begins to emerge from the unique challenges provided by the Covid-19 pandemic, is some clarity around the nature of our future trading relationship with Europe.’

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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