The sterling’s post-Brexit slump against the euro has coincided with a spike in the importation of second-hand vehicles from the UK, which registered an average monthly increase of 46 per cent since July.

Official figures given to this newspaper by Transport Malta confirm that in the aftermath of the June 23 referendum, when Britons decided to leave the EU, second-hand UK car imports to Malta reached 1,649.

This figure, which covers the four-month period from July to the end of October, is just 54 vehicles short of the total for the preceding six months.

The data shows that between January and June, the monthly average of UK used car imports was 283. During this period, the lowest value was for February, with 178 vehicles, and the highest was in May, at 367. In contrast, during the post-Brexit period, which saw the euro getting stronger against the pound, thus increasing Maltese consumers’ spending power, the respective monthly average soared to 412 cars. This figure amounts to a 46 per cent rise over the first half of the year.

October topped the list with 468 vehicles, followed by August with 425 and September with 422.

With the exception of July, the monthly total was significantly higher than any other previous month in 2016.

Enquiries for luxury cars are on the rise

In contrast, there has been a drop in the number of brand new cars imported from the UK, with a 20 per cent decline in the monthly average. In the first half of the year, a total of 365 new vehicles from the UK were registered with TM, which accounts for about 60 cars per month.

However, between July and the end of October, the average dropped to 48, with the overall total being 194.

Though the data does not give a detailed breakdown on what type of cars are being imported, used car dealers who spoke with this newspaper but preferred to remain anonymous believe that there is an explanation behind this trend.

“Since the start of summer, enquiries for luxury cars like Aston Martin, Bentley, Ferrari and Lamborghini have been on the rise. Moreover, the number of prospective buyers calling us for information increased when compared to a few months ago,” the dealer said.

“While on a normal car, the savings due to the favourable exchange rate would be in the order of hundreds, in the case of vehicles worth €40,000, buyers would save thousands,” they noted.

Last month, the sterling slid to a three-year low against the euro and a 31-year-low against the US dollar in the wake of the announcement by UK Prime Minister Theresa May that the formal departure process from the EU would begin by the end of next March. However, following last week’s High Court ruling that the process could not be triggered without the British Parliament’s consent, the pound reclaimed some of the lost ground.

A week before the Brexit referendum, the exchange rate translated into €1.26 for every pound, but as recently as yesterday, its value had shrunk to €1.12.

UK car imports in 2016

Source: Transport Malta