Brexit could see less choice for new car buyers, warn dealers

Car buyers in Northern Ireland could soon have less choice and pay higher road tax when purchasing new vehicles because of post Brexit trading arrangements due to come into force next year, MLAs have been warned.

Some of Northern Ireland’s top dealerships have also warned of job losses in the sector which currently employs around 17,500 workers.

Representative from Charles Hurst, Agnews and Donnelly Group set out their concerns at a sitting of Stormont’s economy committee.

MLAs were told that from January 2026 Great Britain approved new cars will no longer be able to be registered in Northern Ireland.

Instead all new cars registered in Northern Ireland must be an “EU type approved” vehicle.

The changes will only apply to new and not used vehicles.

Dave Sheeran from Donnelly Group said consumers in Northern Ireland will face “a restricted offering, restricted price list and potentially higher taxation”.

“Not everything being offered in GB will be able to be sold in Northern Ireland because of a divergence in regulations with the EU,” he added.

“This is an unintended pain of Brexit.”

He also warned that plug-in hybrid vehicles in Northern Ireland will have to follow different carbon dioxide emissions rules to Great Britain, which will see consumers paying higher tax.

“Somebody buying a car in Belfast will face a higher tax than someone buying the same new car in Birmingham,” he said.

Jeff McCartney from Charles Hurst said the changes will be challenging for consumers and local car dealers.

“The irony is customers will be able to go to GB and buy a new car but dealers in Northern Ireland will no longer be able to source the vehicles for them,” he said.

He urged MLAs to back calls for the government to allow local dealers to continue to sell GB type approved new vehicles after January.