The BVRLA stated that fleets were worried about being affected by higher import tariffs on new vehicles and restrictions on employing people from EU countries.
Unfortunately, without knowing the details of the withdrawal agreement, we can’t say for sure how Brexit will affect fleet operations and the leasing industry.
Two things you can do to prepare for Brexit:
1) Green Card insurance
The government has confirmed that company car and van drivers, as well as commercial vehicle operators, should have Green Cards for each vehicle. Even if you have fleet insurance, a Green Card may still be necessary if you’re driving outside of the UK after Brexit.
Some European countries also require trailer insurance, meaning you’ll also need to apply for a separate Green Card for your trailer.
We recommend speaking with your insurance company to make sure you’re covered post-Brexit.
2) International Driving Permits
The government plans to negotiate an agreement that means the UK licence will still be recognised abroad. However, in the event of a no-deal Brexit, there may not be a mutual recognition of licences which will require UK drivers to carry an International Driving Permit (IDP).
There are three types of International Driving Permits:
- 1949 Convention IDP: Driving in Spain, Malta or Cyprus.
- 1968 Convention IDP: Driving in any other EU country (including Norway and Switzerland).
- 1926 Convention IDP: Driving in Liechtenstein.
You don’t need an IDP to drive in the Republic of Ireland.
IDPs are available from larger post offices and cost £5.50.
How will a no-deal Brexit impact fleets?
Prices
Without a Brexit withdrawal agreement, the UK would revert to the World Trade Organisation (WTO) tariffs. This could mean a 10% tariff on vehicles manufactured in Europe and sold in the UK.
Driving lease and rental vehicles in Europe
Drivers will still be able to take their lease or rental vehicles to Europe. Leasing companies must provide drivers with the correct documentation because the VE103b rules will not change.
Number plates
EU-badged number plates will not be valid in the event of a no-deal Brexit. You won’t need to remove the EU stickers on number plates, just as long as you display a GB badge somewhere on the vehicle.
What is the BVRLA saying about Brexit?
Gerry Keaney, Chief Executive of the British Vehicle Rental and Leasing Association (BVRLA), said:
‘The BVRLA will continue to assist members in their operations, and we will regularly update members when possible on the implications for our sector regarding the decision to leave the EU…We remain confident that BVRLA members will adapt – after all, our sector is very experienced in dealing with challenge and change.’
How can Arnold Clark Vehicle Management help you prepare for Brexit?
Obtaining the correct driver documentation is a step in the right direction in preparing for Brexit.
Until we know the exact details of the EU exit deal, it’s hard to know how best to prepare. Arnold Clark Vehicle Management is part of the Arnold Clark Group and we’re one of the largest automotive retailers in Europe. We’re well equipped as a business to deal with all of the potential outcomes of Brexit.
If you have any questions or concerns, please speak to your account manager, who will be happy to help.
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