Brexit still having an effect on the used Porsche marketplace?
Britain voted to leave the EU in 2016. Despite ongoing wrangling, the general consensus is that Brexit is indeed done. What impact has that decision and the many economic changes had on the 911 market?
“That’s an interesting topic,” says Jonathan Ostroff, sales manager at Hexagon Classics. “Brexit hasn’t affected the UK right-hand drive car values, as they were never very sought after by our EU partners (excepting Eire, Cyprus and Malta),” Jonathan rightly points out. “Collector-quality RHD Porsches have increased in value in the UK since Brexit (and Covid of course), as the Porsche-buying public have decided that the banks are no longer a great place to store their money, especially with high inflation becoming a reality for all,” he continues. But what of the market into and out of Europe?
Historically, a perk for buyers – and indeed, occasionally, traders – was a flight to Germany or Europe to buy a 911, which they then drove back to the UK and owned, or sold as stock if a dealer. A 911, travel and a road trip in one go. “Brexit has killed all that,” says Philip Raby, of Philip Raby Specialist Cars. Twenty years ago, he bought a 964 from Germany and brought it to the UK as his own car. He’s also brought into the UK a number of cars from Jersey as sales stock, so he’s no stranger to crossing the UK borders or customs with a 911.
“The VAT changes [since Brexit] are a problem,” Philip says, “but it’s Customs that’s the big one. “Previously, you could buy a car, drive it here and register it, but now it’s just a nightmare.”
Depending on age, there may be varying levels of VAT and duty to pay, and confirmation of vehicle approval before you can register it in the UK – all of which involves time-intensive paperwork and no doubt, stress. Sending a car out of the UK is equally confusing, because each country has differing rules.
That said, Philip reveals that he’s just sold a car to the Republic of Ireland, and another 911 – a left-hand drive car in the UK – to a customer in Zurich (which isn’t in the EU, note). Remember though: “The weaker Pound has also increased demand for special, significant Porsches to other RHD markets across the globe,” says Jonathan, pointing out that this factor “has had a greater effect on UK Porsche market values than Brexit itself.”