BREXIT – The possible implications

legal updates

We all sincerely wish for a good outcome from the present impasse, but reality must govern our future planning.

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Brexit in all its twisted and currently confusing forms, has the potential to cause considerable disruption to Clients who do not take precautionary measures to cover the next twelve months.

Anyone who is selling an imported make, should now be planning for a disrupted supply chain, not only of cars but of parts.

Anyone who imports from outside the EU may still face disruption as their order becomes stuck in a logjam at the ports.

The reverse also applies. If a car is sold to a customer in Europe or a UK customer takes his new car abroad for a holiday, there could be huge cost implications if the car fails while in Europe.

It might be worth looking into special indemnity insurance to cover such contingencies. It may not be available but the questions should be asked now, not when the crisis occurs.

A further possible effect of a No Deal Brexit could be that folk decide not to replace their cars as often as before, so that more worn out cars may become available on the used car market. Particular care should therefore be taken when accepting an old car in part-exchange for a sale. We suggest you not only road test but place the exchange car on the ramp before agreeing a price. It is what the customer would wish for any car they were buying from you.

Also, do not forget to tell your customer that he probably will require a “Green Card” to validate his insurance while abroad but that cover will only be for a maximum of 90 days.

We all sincerely wish for a good outcome from the present impasse, but reality must govern our future planning.

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