Car finance costs have increased by as much as 49% since Britain voted to leave the European Union because of exchange rates worsening.
The tumbling pound has left UK drivers out of pocket by as much as £98 per month, or £4,606 over the course of the full contract.
Sterling has tumbled in value from more than 1.3 euros to the pound in May 2016 to barely 1.1 euros in February 2019.
This has resulted in Personal Contract Purchase finance costs for numerous cars – a large proportion of which are imported from Europe or use many European parts – rocket by up to 49% in monthly payment terms, Parkers’ original research has found.
As a result, monthly payments have increased more than one-and-a-half times as fast as cars’ cash prices, putting real pressure on household budgets when drivers come to the end of their current contract and look to change their car.