Brexit: Hyundai makes pricing promise on orders taken before 2021

Hyundai has become the latest manufacturer to reveal vehicle pricing plans ahead of a potential ‘no deal’ Brexit.

The carmaker has committed to protecting its vehicle prices on all orders taken ahead of on the transition period ending on December 31.

The price protection promise applies to both retail and fleet customers, as well as Hyundai Affinity buyers, and is valid on existing model year vehicles.

Motability vehicles will see price protection on advance payments for applications made in 2020, with the cars to be delivered in 2021, it said. Demonstrator vehicles are excluded.

“Our retailers have been enormously innovative and resilient during 2020, and we are doing what we can to support them,” said Ashley Andrew, managing director of Hyundai Motor UK.

“Having successfully navigated two national lockdown periods, the remainder of 2020 is a fruitful opportunity for our retailers and we don’t want the uncertainty of a no-deal Brexit to stand in the way of sales.

“This price protection promise will support our dealers this month while also reassuring our customers.”

Company car price hike

Fleet decision-makers and the leasing industry are themselves for a price hike on new company car and van orders in the event of a ‘no deal’ Brexit.

Fleet News reported last month, how BMW has announced a customs duty related increase of more than £3,000 on the recommended retail pricing (RRP) of the BMW i3, irrespective of whether there is a free trade deal or not. 

BMW had announced at the beginning of October that BMW i3 models, along with the majority of other BMW models, would be subject to an “economic increase” in the recommended retail price rise from January 1, 2021.

Due to changes in the ‘Product Specific Rules of Origin’ legislation, it says that the maximum permitted content of non-EU and non-UK materials means these models will be subject to additional tariffs after the end of the Brexit transition period.

This will be the case, it adds, “whether or not there is a free trade agreement with the EU”, which means a further increase in the RRP of BMW i3 models is needed.

The current RRP for a BMW i3 (ZI3I), valid until December 31, is £35,120 – the previously announced RRP, to be effective from January 1, was £35,670. However, BMW says that the new RRP from January will now be £38,785 – an increase of more than £3,600.

Similarly, the current RRP for a BMW i3 (ZI3J), valid until December 31, is £37,650 – the previously announced RRP, to be effective from January 1, was £38,200. However, BMW says that the new RRP from January will now be £41,315 – again an increase of more than £3,600.

It says that for Direct Sales Agency Agreement vehicles, orders registered on or before December 31 will be charged the pricing valid on the date of order.

Meanwhile orders registered on or after January 1 will be charged as follows:

• Vehicles which arrive in the UK on or before December 31 and which are marked sold on or before December 31 will be charged the pricing valid on the date of order as the vehicle will not incur additional import charges. Vehicles must be registered by April 30, 2021, to benefit from this pricing.
• Vehicles which arrive in the UK on or after January 1, regardless of the date of order, or which are marked sold on or after January 1, will be charged at the new price, incorporating the customs duty increase and are not price protected.

BMW’s price warning came after Renault, along with Jaguar Land Rover and Mercedes-Benz, issued their own advice ahead of a free trade agreement possibly not being reached.