Sales debate

How has Brexit affected the international Porsche market?

It was a political saga which dragged on for years, but

Brexit is now very much a reality, with consequences for both the UK and Europe. So how has this affected the used Porsche market, which historically has been impervious to geographical boundaries?

“At the top of the market, Carrera GTS and exotic 911s coming into the UK from Europe, or vice versa, are now subject to VAT at 20%, which effectively means cars in the UK are trapped here for now, and likewise with examples in Europe,” says Ed Lovett, founder of Collecting Cars. “It’s narrowed the market significantly, though I couldn’t tell you if that will have a positive or negative affect on their value.” While not a 911, the Carrera GT serves as an example of the sort of complications enthusiasts will now have to endure.

Paul Stephens, owner of the Suffolk-based Porsche specialist, is happy to go further by saying the early realities of Brexit is having an impact on the market, though any turbulence will peter out as the months roll on. “The main issue here in the UK is a general shortage of stock, whether left or right-hand drive. There’s still a healthy appetite here for cars, over actual cars available, so in the UK things are buoyant,” he says. “Getting cars imported and exported, there are definite challenges. It will get easier but right now it’s new territory for everybody, so I suspect that will temper the enthusiasm of Europeans wishing to buy left-hand-drive stock here in the UK, and vice versa.”

So with left-hand-drive cars stuck in the UK, what’s the affect on their value? “It’s all about supply and demand,” Stephens says. “There’s not an abundance of left-handdrive cars in the UK, and clearly if you have an identical car here in right-hand drive, that’s going to make more money, so the attraction of a left-hand drive in the UK has always represented a saving. That will remain the case regardless of Brexit.”

Clearly, Brexit has brought about new logistical and administrative challenges for the used Porsche market, but while cars crossing the English Channel have undoubtedly slowed in the first quarter of 2021, it seems the industry is intent on overcoming these challenges, which will result in a pick-up in trade between the UK and mainland Europe towards the latter part of the year.