January 4, 2021
We recently wrote about how a no-deal Brexit might impact a new lease vehicle and driving in the EU, but now there’s an agreement in place we wanted to update you on what Brexit means for your vehicle needs.
As part of the agreement the EU and UK have agreed to zero tariffs and quotas on the import and export of trade good. Trade good includes vehicles and parts needed for them.
In order to qualify for this tariff-free access then companies will need to meet some requirements, set out in the Rules of Origin, which dictate how much of a particular good can be made outside of the EU / UK.
Petrol and diesel vehicles need to be made with at least 55% local content, which is content made in either the EU or UK depending on where the exporting company is located.
Electric and hybrid vehicles will need to be made with at least 40% local content until 2023 and then 45% between 2024 and 2026.
Batteries for electric and hybrid vehicles will need to have at last 30% local content until 2023 and then 50% between 2024 and 2026.
The thresholds for 2027 onwards for electric and hybrid vehicles as well as the batteries for them will be reviewed in 2024 by both parties.
The EU and UK have both agreed for additional flexibility in collecting the documentation evidence to prove origins during this first year, to allow for the limited time there was between the agreement being made and then coming into place.
What Brexit Means for New Cars
What this agreement means is that if you are looking to expand your fleet, whether you are purchasing or leasing, then you will not see an increase in price because of Brexit provided the manufacturer meets the above requirements.
If you are looking to grow your fleet and are considering leasing as an option, then we would be happy to discuss the benefits this can bring to your business and the vehicles we can provide.
Servicing, Maintenance and Repairs
As vehicle parts are also included in the tariff and quota free agreement between the EU and UK you should not see a movement in price on parts due to Brexit either.
We would also not expect there to be a large impact on lead times for parts needed for repairs or maintenance work, though there might be a slight delay for some parts initially as businesses come to grips with the new requirements.
Driving in the EU Post-Brexit
The government has now updated their advice to UK drivers looking to drive in the EU and we’ve rounded up the key changes you should be aware of if you are planning to travel in the EU.
Drivers should always carry their driving licence with them but especially when they are travelling abroad.
An international driving permit (IDP) will also be required if driving in some EU countries and Norway if the driver still has a paper licence or if their licence was issued in Gibraltar, Guernsey, Jersey or the Isle of Man.
You can check if you will need an IDP here.
Green Card Insurance
Drivers will now need to carry a physical copy of a green card insurance certificate.
This is an international certificate of motor insurance and you will need to make sure that you contact your insurance provider in time for them to provide you with a physical copy of this. The government are currently advising you allow six weeks notice before travel to ensure you receive this prior to travel through many insurance providers may be able to send this to you in less time so we recommend checking with your provider what their timeframe is.
You will need a green card certificate for any vehicle in your fleet that is going to be travelling to the EU, even if they are on a multivehicle policy. If one of your drivers is planning on taking a trailer or caravan then this will also need a separate green card.
It’s important that any of your drivers planning to drive in the EU have the necessary green cards as they are not only needed in the case of accidents but might be requested at police checks and border crossings.
When travelling with a vehicle a driver will also need to carry a copy of the V5C (the vehicle log book) or if it is a leased vehicle then a VE103 form.
If you have a leased vehicle through Wessex Fleet or we manage your fleet and need to request a VE103 form then we can do this on your behalf, but please be aware that some of our funders require up to six weeks’ notice prior to travel to ensure the documentation reaches you prior to departure.
VE103s are usually valid for one year but we will need to provide the below information when requesting one:
- Drivers names as appear on licences
- Drivers addresses as appear on licences
- Dates of travel
- Countries planning to visit
Should any of this information change between trips even if it is within the one year period then you may need to request another VE103.
Any vehicle travelling in the EU will now be required to have a GB identifier.
If there is one on the number plate then this will be sufficient and you will not need an additional GB sticker unless you are travelling to Spain, Cyprus or Malta.
You will need to purchase a GB sticker to display in the rear of vehicles where the number plate has:
- A Euro symbol
- A national flag of England, Scotland or Wales
- No flag or identifier
If you have a fleet management policy through Wessex Fleet and have any questions about how Brexit might impact you and your drivers then please don’t hesitate to give us a call on 01722 322 888.