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Porsche Asks UK to Commit to 10% Surcharge in Event of No-Deal Brexit

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Porsche is asking its British customers to sign a contract that commits them to paying a surcharge of up to 10 percent of their vehicle purchase in the event that a no-deal Brexit goes through.

Porsche says the clause was added as a precautionary step and only affects British customers whose cars are likely to arrive after Brexit occurs on March 29, 2019.

Though Porsche does not build cars in the UK, the island remains a major market that accounted for well over a fifth of the German automaker’s global sales in 2018.

Alternative: Just buy in the US

A no-deal Brexit is expected to be especially troublesome and costly for companies that manufacture cars in the UK, but even for Porsche, which is owned by Volkswagen and builds only in Germany and Slovakia, the cost of selling in the UK would go up.

Cars made in Europe could face tariffs of 10 percent if imported to the UK under the terms of the World Trade Organization, which will dictate the terms of the trading relationship should the UK and the EU fail to come to an agreement on a deal.

Porsche’s most popular UK model is the Macan SUV, which starts at £46,000. Owners signing the contrast may therefore be liable for £4,600. However, this is one of the automaker’s most affordable cars: the Panamera wagon, Cayenne SUV, and 911 sports car are all listed at over £100,000.

New vs Used: What’s the difference at Porsche?

Customers who placed deposits on Porsche cars before January 18 escaped the potential charge, while customers who did so or will do so before March 29 will need to agree to pay 10 percent more should their car arrive after Brexit and if no deal was struck between the UK and the EU.

Presumably, British customers who order a Porsche car after March 29 will not need to sign such a contract, as the extra 10 percent fee will be baked into the cost of delivering to the UK anyway. This may lead in a rise in customers taking delivery directly at the factory, especially considering this is an enticing experience Porsche already offers.