Pendragon boss eases car price rise fears post-Brexit

Britons should not expect the price of cars to rise this year, the boss of car dealer Pendragon said today, as he gave a bullish outlook for the autos market.

The pound’s post-referendum plunge has stoked fears imported goods will become more expensive, but Trevor Finn predicted car manufacturers will likely bear the brunt of higher costs.

“If they decide to put prices up they’ll sell fewer cars. We are finding that they are actually choosing to maintain volumes and we have no reason to see that changing.”

Pendragon, owner of retailers Evans Halshaw and Stratstone, has seen no impact from Brexit, he added. Same-store sales rose 5% to £548.7 million, while underlying pre-tax profit was up 7.6% at £75.4 million in 2016.

It sees flat new car sales this year versus a forecast 5% drop, but expects to double used car revenue over the next five years. It is spending £100 million on new space and expanding online.