This will mean new car prices will become more expensive – with some car manufacturers already responding.
Audi has just announced a 2 per cent rise across most of its car range, for example. There have also been price changes for Peugeot, Honda and various other makers.
The weakness of the Euro is a major factor in this. It means the UK pound ‘buys’ less abroad, driving up the cost of imports.
Furthermore, the BBC reports that Japanese cars will rise in price, due to the strength of the yen – electrical manufacturer Canon has already put up prices of electrical goods across Europe.
But prices will not rise across the board. Big sellers for Honda, Vauxhall, Nissan and Toyota – cars such as the Civic, Astra, Qashqai, Micra, Auris and Avensis – are all produced in UK factories.
This means they will be exempt from currency fluctuations. It is the other models about which dealers may be soon explaining price rises to customers. Yet more bad news for new car sales – and once again, something that is out of dealers’ hands…
By Richard Aucock