Research Reveals Costs of Car Leasing in the UK Increased by 9% In A Year Due to Brexit

The cost of leasing a new car in the United Kingdom has gone up by 9 percent in a year because of the weak pound amidst the Brexit vote.

A research that was conducted by UHY Hacker Young, an accountancy group, reveals that the monthly cost of leasing a car increased from an average of £232 last February 2017 to £253 during the same month in 2018. The figures were based on a basket of some of the most well-known car models in Britain.

UHY said that the weakened pound is causing the costs of import to rise for motor manufacturers, and those companies are starting to pass the expense on to its customers.

The accounting firm said that the prices are also being driven up by the strengthening sales in European markets, with fewer stocks making its way to the United Kingdom.

The three most significant increases in monthly costs were all for the cars that are made in Germany: the Mini Cooper D which increased by 31 per cent; the Audi A3, up by 23 percent; and the Mercedes-Benz C220, up 19 percent.

The data is in contrast to the massive discounting among makers of prestige cars that was observed during recent years.

UHY also remarked that the three largest cost increases were for diesel models, signifying the decreasing popularity of the fuel.

The group said that providers of contract hires are likely to be raising the cost of leases to compensate for the declines that they expect in the residual value of the diesel cars.

A partner at UHY, Paul Daly, stated: “UK car buyers have benefited from a period of deep discounting, but that seems to be coming to an end. Now could well be a good time for consumers to change their vehicles before prices rise further.

“Long-term sterling weakness means manufacturers are having to shift their rising supply chain costs on to consumers.”

Last Friday, Jaguar Land Rover revealed that it would cut approximately 1,000 jobs, with the experts blaming both the Brexit and the drop of diesel for the difficulties of the company.