Brexit: Mercedes slashes prices in Ireland by 10% because of weak pound

Luxury carmaker says move was to prevent ‘grey imports’ from the UK

The Mercedez-Benz AMG GT S is €25,000 cheaper in Ireland because of currency movements (Reuters)

Brexit just cut the cost of that dream sports car. As long as you live in Ireland.

For Mercedes-Benz buyers, driving on the same side of the road as the UK while using a different currency comes with a new perk. The company in Ireland is reducing new car prices by 10 per cent because of Brexit, a move it says is designed to support distributors after the slump in the pound made UK imports cheaper. At 14 Irish dealerships, the top-of-the-range Mercedes-AMG GT S now costs €225,000 (£196,000), saving about €25,000.

“Like the UK, Ireland has right-hand drive, plus it has the euro,” said Ashley Winston, who sources cars on request across the UK from his London base. “So Irish drivers are almost uniquely placed to take advantage of Brexit.”

Ireland’s historical, economic and geographical ties with the UK have made Britain’s decision to leave the European Union one of its biggest ever foreign-policy challenges. Any longer-term clouds over trade and border controls at least have a short-term silver lining: Irish consumers are getting things a little cheaper after the pound fell 12 per cent against the euro since the June vote.

The number of used private cars imported and licensed in December more than doubled to 6,357, the Irish statistics office said on Thursday. They mainly come from across the Irish Sea before being taxed and registered.

Mercedes, part of Daimler, said decreasing prices across its model range was already helping sales in January. The company has been running radio adverts trying to tempt Irish drivers.

Ciaran Allen, sales manager at Mercedes-Benz Passenger Cars in Ireland said the price cut in “response to Brexit – and the impact it was having on sales of new and used cars in Ireland as a consequence of the drop in the value of sterling, which in turn has increased the level of grey imports – has had a positive impact”.

In Sligo, in the north west of Ireland, car dealer Kevin Egan acquired the domain name Brexitcars.ie immediately after the vote to exit the EU. The site says he bought his stock at the “new, favourable sterling rates” and also carries warnings about buying a car across the Irish border, such as the lack of after-sales care and issues around warranties.

“There’s a perception that the UK is so much cheaper,” said Mr Egan, who employs 19 people after opening his own business following the closure of the dealership he worked in 2009. “The message was: ‘before you go, ring us’.”

Even with the Mercedes price cuts, it’s still more expensive to buy cars in Ireland. The Mercedes-AMG GT S costs £111,495 in the UK, according to the car company’s online catalogue. In part, the difference is explained by higher tax rates in Ireland, and drivers importing cars have to pay the difference.

Still, the Irish inquiries keep coming to Mr Winston in London. He said his company is preparing to deliver a £75,000 used Volvo to a client in Dublin.

“I was despairing when the Brexit result came through,” he said. “Then, an Irish client said this is going to be great, you are going to get lots of business from us. He was right. Brexit hasn’t been so terrible after all.”

Bloomberg