Brexit Policy | Fulton Vehicle Leasing
Fulton Vehicle Leasing

Brexit Policy

BREXIT UPDATE 21/10/2020

On 31 January 2020, the UK left the EU with a deal called the withdrawal agreement. At the end of the transition on 31st December 2020, the UK will leave the single market and customs union. You will be aware that the UK Government remain in negotiations with the EU regarding the future trading relationship and is it possible that a Free Trade Agreement (FTA) may not be reached at the end of the transition period.

What does this mean for the you and the order for your new vehicle?

If we are unable to secure an FTA, the UK will default to World Trade Organisation (WTO) terms from 1st January 2021, according to the UK Global Tariff document published in May 2020. This will end the 0% tariff on vehicles imported into the UK from the EU and a 10% tariff will apply, the same as those vehicles which arrive from other nations. The effect of the removal of the 0% tariff will increase the price of a EU imported vehicle. In addition, an increase in tariff will also apply to parts imported from the EU and used in the production of motor vehicles built in the UK and will therefore impact on the cost of those vehicles.

If an FTA agreement is not reached, resulting in a price increase to the vehicle that you have ordered through us, we will therefore need to requote you as any price increase will cause an increase to the rentals or payments under the finance agreement that we are arranging for you. We will of course discuss this with you once we know what the situation is. Please note that we may have to obtain a re-acceptance of your proposal from the funder which could lead to an additional search being made with a credit reference agency and if you have already signed a finance agreement you will need to re-sign at the new agreed terms.

A finance agreement is a long-term commitment, and you must be sure that you are able to service the payments under the terms of the contract. If your vehicle price increases which makes this no longer affordable, you may cancel the order and we will waive our cancellation fee. We will of course be able to assist you with finding an alternative vehicle which suits your needs and budget.

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