A decline in vehicle sales caused by Brexit could dissipate within a few years, according to the results of a new poll by Paragon.
It found that, while every finance broker and dealer quizzed believed that Brexit will not have any positive impact on the motor finance market, the general view is that there would be a short-term “blow to sales” that could dissipate within a few years.
When asked how they thought Brexit would impact on the overall motor finance market, 52% said it depended on the deal, 19% said no change, 17% said it would have a negative impact and 12% did not know – but positive impact got a 0% response.
The findings are from Paragon’s regular industry report, Headlight, which polled around 45 key vehicle finance brokers and dealers operating in the UK at the beginning of November.
They were also asked their thoughts on how Brexit would impact on varying types of vehicles for which more brokers had a positive outlook for commercial vans, caravans and motorhomes than prestige or new cars.
“Through our extensive work with motor finance brokers and dealers, we know that Brexit is at the forefront of everyone’s mind in the industry and this survey gives real insight into what people on the frontlines are expecting.
“We do regular surveys to gauge the temperature of issues in the industry and it’s unusual to get zero for a response, so it’s a very pronounced statement on the thoughts of the industry on Brexit.
“Most people questioned felt that a lot rested on what kind of deal could be negotiated and there was a general feeling that there would be a short-term impact that would eventually stabilise,” said Julian Rance, director of Motor Finance at Paragon.
Concerns expressed by those surveyed included: tariffs on new cars, decreased availability and consumers ‘waiting for things to settle down’ before they commit to a new vehicle.