There are various price-protection policies, depending on manufacturer. We recommend contacting us for advice on individual orders or vehicle choices in the first instance.
Volkswagen Group UK brands (Volkswagen, Audi, SEAT, ŠKODA and Volkswagen Commercial Vehicles) will price-protect all orders received by 5.30pm on Wednesday 2 December. Please ensure all orders are placed with us as promptly as possible. We anticipate an increased volume of orders and therefore cannot guarantee that we will be able to place orders received close to this deadline.
To qualify for price protection, vehicles must be delivered on or before 31 March.
If the UK leaves the EU without a trade agreement, the UK will revert to World Trade Organisation trading tariffs. As a result of this, it is expected that import tariffs for vehicles from the EU (and some other countries) are likely to increase by 10%. We expect this tariff increase will be directly reflected in new vehicles’ purchase prices, which will, in turn, impact monthly leasing costs.
“With 72% of fleet cars and 68% of vans estimated to be sourced from the EU, the impact of not having a free trade deal would be disastrous for the fleet industry. Tariffs would add £2.1 billion a year to the UK fleet sector’s car renewal costs and £310 million a year to the sector’s van renewal costs, according to industry figures.”
From the British Vehicle, Rental and Leasing Association (BVRLA)’s EU Exit Bulletin, 22 October 2020 https://www.bvrla.co.uk/uploads/assets/47614261-dc05-401f-b0bb8dba4fec79e0/22-October-Bulletin.pdf
Find out if your vehicle could qualify for price protection (see our answer to question 1 for more information). If your vehicle does not qualify for price protection, we recommend discussing your options with us.
We can support you with planning all your 2021 vehicle orders, with a variety of options for minimising costs and driver disruption.
These could include:
- cancelling the order (a cancellation charge may be payable) and ordering an alternative vehicle with a lower/comparable monthly rental
- paying the increased rental
- considering short-term/daily rental or medium-term/flexible rental
- extend the vehicle’s current contract
Cancellation options depend on several factors: the manufacturer’s overall policy, the model, the specific circumstances and the supplying dealer. Please contact us for advice on a case-by-case basis.
Policy and benchmarking
There are a significant number of variables involved in calculating the total impact at a business-wide and a driver level, specifically the range of vehicle brands and power trains you wish to consider and the way in which you calculate your vehicle bands (eg whole-life cost or benefit-in-kind tax band). We will advise our customers on how to plan their banding and policies to minimise the impact on driver benefits and operational costs. If you’re not a Volkswagen Financial Services | Fleet customer, we can use the same methodology to provide a no-cost consultation on your policy and bands.
Whole-life cost impacts
Order and delivery timings
As you have suggested, this will depend on what new tariffs are in place for 2021. See our answer to question 1 for more information on the likely impacts and the opportunity for price-protecting these orders
Yes, this is an option. In the first instance, see our answer to question 1 for more information on the likely impacts and the opportunity for price-protecting these orders. Then contact us to discuss your options.
This will depend on several factors. Please contact us for advice on a case-by-case basis.