January 30, 2017 at 10:26 AM

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2017 is going to be a great year for car-related business but not so good for customers.

4 big things that will impact your wallet when it comes to owning a car:

  1. New car prices are expected to increase
  2. New tax rules
  3. Insurance is on the rise and IPT is due to increase
  4. OPEC oil production freeze will spiral up petrol prices

Let's have a look at it in detail:

1. New car prices increase.

Brexit is definitely one of the cause but not the only one due to its consequences such as the fall of the Sterling. The rise in demand for the metal used to build them, the rise of production costs. Another worrying element is the potential implementation of tariffs (£1,500 per imported car) when the UK will separate from the EU.

An average figure of 3% has been mentioned with regards to the increase in car prices (approx. £825).

 

2. New car tax rules.

As of the 1st April 2017, new car tax rules will apply.

Check this table below to have a look:

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3. Premiums and Insurance Premium Tax will rise again.

According to the latest Confused.com Car Insurance Price Index prices rose by 14% between 2015 and 2016, that means £95 on average. Much of this rise was due to the IPT which will rise again from 10% to 12% in June.

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This rise is fuelled by these disturbing cold callers and ambulance-chasing lawyers that do all they can to force your end and increase insurance payments, resulting in a higher bill for you.

4. Oil production freeze will drive prices up.

OPEC decided to freeze its production while the demand is constantly growing, making it more expensive. Additionally, as the barrel is priced in US Dollars, the fall of the Sterling led to an increase in price for the UK buyer.

 



Tags: News
Category: News