What are the likely effects of Brexit on the UK classic car market?

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Our Price Guide for MGBGTV8s and RV8s was updated in May 2016 and is available on the V8 website. Link








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Sterling/EUR & Sterling/USD FX rate movements 2016


What is the impact of FX movements on MGBGTV8 prices?
Sterling/Euro and Sterling/US$ exchange rates have moved significantly following the UK Brexit result providing potential savings for overseas buyers of MGBGTV8s offered for sale in the UK priced in Sterling. Taking a Condition 1 MGBGTV8 offered at the price indicated in our updated price guide as an example:


This worked example indicates a likely saving of around two thousand pounds (Sterling), between 8.5% and 9.6% on the "Euro/US$ prices" in May earlier this year, which will provide an attractive discount for potential buyers in the Eurozone and overseas. There is probably a 2 to 3 year "buyers' window" in the Eurozone before the EU is likely to introduce import duties and taxes on classic cars imported from the UK.
In a lead article reviewing the effects of Brexit on classic car demand and prices in the UK, Classic Car Weekly says in its latest issue "demand from international buyers will rise, values will remain strong and classic friendly legislation will be more easily achieved".

Demand from international buyers
Following the Brexit result from the UK referendum exchange rates have moved against Sterling leaving UK classic cars less expensive for buyers in Euros or US Dollars. That FX movement also reduces shipping costs too. In the longer term opinions vary over the Brexit effect on the UK classic car market - in the short term CCW says "it's unlikely the domestic (UK) market will feel any effect from Brexit if people keep on spending". The factors having a bearing on spending on classic cars are likely to be low deposit interest rates in the UK encouraging "alternative investment activity" in the classic car market and the general state of the UK economy.

UK classic car market and prices
With the prospect of still lower deposit interest rates in the UK the alternative investment activity in classic cars we have seen growing over the last 18 months or so is likely to continue and probably grow thereby supporting the domestic market and prices. That effect has been seen this year and will continue to be a factor in the UK MGV8 market and prices.

Longer term - possibility of EU import duties and taxes
In the longer term Nick Whale of Silverstone Auctions is reported by CCW as saying he is "unsure about the longer term but agrees there will be turmoil in the coming months as leaving the EU will unsettle values. We don't know what rates of import duties or taxes various EU countries will levy on classic cars imported from the UK and the consequential willingness of EU based enthusiasts to buy".

EU classic car legislation
Geoff Lancaster (FHBC) is reported as saying "a Remain vote would have secured us a seat at the table when discussing the classic car movement across Europe but having left we will only be able to watch (the development EU classic car regulations) from the sidelines". Sir Greg Knight (chairman of the Parliamentary Historic Vehicle Group at Westminster) disagrees saying "Britain is classic car friendly and I feel this (Brexit) move will allow us to breathe easier." Whether the UK Government will put into effect the recent unwelcome EU roadworthiness directive that will apply to classic cars remains to be seen as technically the UK is still in the EU and obliged to do so until we are out! Chris Hunt Cooke feels that with Brexit there will be "less possibility of unwelcome classic car regulation" as the UK approach is far less rigid and focused on ensuring vehicles are safe and allowing sensible improvements or upgrades.