Brexit Update
and the impact on the leasing industry

Ogilvie Fleet remain vigilant of the developing situation surrounding the UK’s Brexit transitional period, which ends on 31 December 2020.  As part of our preparations, we are monitoring all eventualities, as well as the differing position of manufacturers and other relevant suppliers. Where we have received specific statements from manufactures, they are stated further down this web page. 

We are aware that there is the possibility of additional tariffs on certain (not all) imported vehicles and thus the chance of increased prices. However, the UK is a huge market for many European manufacturers and our view is that they will not want to lose registration numbers as a result. None the less, net acquisition prices could increase and this may well cause a consequential reduction in sales volumes. The effect of increased prices and lower sales volumes could, nevertheless, potentially have the effect of increasing residual values, which in turn could mean we would not need to pass on the whole of any net price increase to our clients. 

Where manufacturers are allowing price protection, we will be honouring those positions as we have always done. Where manufacturers are insisting on immediate price increases, we will be discussing the relevant impact with our clients on a one-to-one and as-required basis. 

It is also possible that there could be some vehicle and parts supply issues. Many manufacturers are already stockpiling vehicles and parts to protect against such supply problems and we are in contact with all suppliers to ascertain their positions in this regard and thus, where possible, protect ourselves and our clients. 

It is also possible that vehicle parts prices may be affected, but contract hire inherently protects against such rises and thus those costs (if applicable) would not be passed forward to clients on any existing leases. There may be a need to pass these on in the costs of future leases none the less. 

We will of course keep our clients fully informed of any changes, as always, when and if they occur and we will continue to work closely with all manufacturers and other suppliers throughout the whole of the transition process in order to minimise any disruption.

This page will be updated with information supplied to us from manufacturers regarding their stance on the impact of Brexit.

BMW - 7th October 2020

We continue to face political uncertainty regarding the end of the Brexit transition period, whether we will have a free-trade agreement and the implications for your and our businesses.

However, we feel it is important to let you know now that unless there is a free trade agreement with the EU additional customs duties are likely to be applied to BMW and MINI vehicles imported into the UK. This means that any vehicles which are delivered into the UK on or after 1 January 2021, regardless of date ordered, may have additional customs duties imposed on them.

Should there be a no-deal Brexit, BMW UK will provide details of the implications of that including any price changes for vehicles as soon as possible.

Volkswagen - 17th September 2020

We are closely monitoring developments surrounding the UK’s transitional period, which ends on 31 December 2020. As part of our preparations, we have established an understanding of all Brexit eventualities and we are confident of our readiness. Actions include but are not limited to:

• obtained an EORI number;
• optimised stock availability to mitigate the risk of supply constraints;
• appointed customs agents allowing us to import cars and parts into the UK in line with HMRC regulations;
• implemented and tested required systems changes.

We will issue further communication following the outcome of the EU summit, currently planned for the 15 and 16 October 2020. Should the outcome of the EU summit necessitate the application of import tariffs and/or increases to prices are required, then we will communicate our plans to deal with this as quickly as possible.

In the meantime, we remind you of our agreement on pricing – we reserve the right to amend the price/discount of vehicles at any time if a change to regulation, legislation, application of tariffs, duties, taxes or other charge/event causes an increase to the costs of supply of vehicles.

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