Trouble ahead for the motor trade?

Henry Ford III

http://www.timesonline.co.uk/newspaper/0,,2765-2125382,00.ht ml

The Sunday Times April 09, 2006

Drive a second-hand bargain from UK
Jan Battles
CAR-BUYERS in the republic can save 30% by buying second-hand vehicles in Britain and Northern Ireland, and importing them.

Used cars cost on average 28% more in the south, but savings of as much as 68% can be made on certain models by travelling across the border or to Britain, according to a study by Consumer Choice magazine.

The cars are cheaper even after payment of vehicle registration tax (VRT) in the republic, which can put up to 40% on the price. VRT must be paid to reregister imported second-hand vehicles. It is not charged on used cars bought in the republic.

“Even allowing for VRT and the less favourable euro/sterling exchange rate, considerable savings are possible on many used cars if bought and imported from Britain and Northern Ireland,” said Consumer Choice.

British second-hand cars usually have a better specification than their Irish equivalents. They are also generally better maintained and in better condition due to superior British roads, and have lower mileages.

“In return for a little research and effort, you are more likely to end up with a car with lower mileage, a full history, better condition and better spec — all for less money than you would pay in Ireland,” said Consumer Choice, published by the Consumers’ Association of Ireland.

The study found variations of up to €6,400 in British/Irish prices, even after VRT is paid. The savings were found across a range of cars, including super minis, executive, sports cars and people carriers.

The biggest saving was on a 2000 Toyota Corolla 1.3l with 50,000 miles on the clock. In Britain, the family car costs on average €4,426 including €1,060 VRT, compared with €7,450 in Ireland, which is €3,024 or 68% dearer.

A 2002 Honda Accord 1.8l with 30,000 miles was 53% more expensive in the republic. It cost €15,190 compared with the British price of €9,919.

A 2004 Renault Megane 1.4l cost on average €15,630 in the republic but could be bought for as little as €9,545 in Britain. With VRT of about €2,500 , it still comes to €3,431 less than the average Irish price.

A saving of €6,398 was found on a 2003 Peugeot 607 2.2l with 20,000 miles which was €30,030 in the republic.

There are other costs involved in importing a used car into the republic such as registration plates, car tax and transport, but savings can still be made.

Geoff Walker, from Bray, saved more than €3,000 by importing his 2001 BMW 320D from England. He paid £7,500 (€10,900) for the silver estate from a private seller after seeing it advertised on Autotrader.co.uk, and checking out the service history at HPICheck.com. After paying just more than €6,000 VRT and €240 on phone calls, a flight over and ferry trip back, he was still better off than if he had bought a similar car in the republic, where it retails for more than €20,000.

Conor Faughnan of the Automobile Association believes the knock-on effects could benefit consumers. “The more people start to (import used cars) the more it would put pressure on second-hand car values in Ireland,” he said.

Prospective buyers can use a VRT calculator on the Revenue Commissioners’ website to work out how much they will have to pay in tax to re-register the car in the republic. VRT is calculated using the full, after-tax retail value of the car in the republic, called the open-market selling price. There are several VRT bands that depend on the size of the car’s engine.

Irish consumers already realise there is better value across the border. First-time registrations of private second-hand cars have increased recently. There has also been a rise in the number of vintage cars being imported from Britain and Northern Ireland.

Buying used cars from Britain and Northern Ireland can also be safer, according to the magazine. Buyers can pay to get a HPI history to check if the car is stolen, has undeclared damage, or has any outstanding finance payments pending.

The identity of the vehicle and whether its registration plate and chassis number match can also be double-checked online for £39.95 (€57.60).

Esel

Can you reall check the service history on hpicheck.com?

smashey

I will be moving to the North in the Summer. It will be nice to change my car and not feel like I am getting ripped off.

Lex Luthor

I felt with the exchange rate at the mo it wasn't worth the hassle but I like those prices quoted for the Accord. When did the current model come in?

junkyard

To be honest I've traveled to the U.K. on many occasions to buy cars and they're not always what they're cracked up to be. You can travel far and wide and not find the car your looking for. Granted there's a better selection but a lot of them look better than they actually are. Also add the cost of traveling over there and accommodation and it soon adds up to alot of money. In my experience you'd want to bring in minimum three cars for every trip over there.

maxruby

smashey wrote:

I will be moving to the North in the Summer. It will be nice to change my car and not feel like I am getting ripped off.

you must be the only one in lifford to not have a northern reg car then. lol

cargrouch

Lex Luthor wrote:

I felt with the exchange rate at the mo it wasn't worth the hassle but I like those prices quoted for the Accord. When did the current model come in?

I thought it was 04 but Parkers says 03. A high spec Accord would probably have to come from the UK, wouldn't say there's too many of the new model around. The biggest saving would probably be made on the diesel. Definitely keeping an eye on these for one or two years down the road.

smashey

maxruby wrote:

you must be the only one in lifford to not have a northern reg car then. lol

Me and my brother.;)

bazz26

Lex Luthor wrote:

I felt with the exchange rate at the mo it wasn't worth the hassle but I like those prices quoted for the Accord. When did the current model come in?

The current model Accord was launched in March 2003.

Check this thread out regarding the savings made:
http://www.boards.ie/vbulletin/showthread.php?t=2054915041

Interesting reading about the used warranty.

colm_mcm

that's not entirely accurate, for instance, who in their right mind is going to pay €33,000 for an 03 Pug 607?

Also it should be noted, that they are comparing prices advertised here with actual prices people paid in thr UK. Nobody pays the asking price for cars!

PauloMN

Depends on what you are looking for. I've priced Vectras up north, and reckon I can save around €4k on a similar model here, even after paying VRT.

Popular UK fleet cars (such as the Vectra) depreciate a lot in their first year and hence make great used buys.

I also contacted Opel about the warranty. Vauxhall give a 3 year warranty in the UK (compared with the 2 year Opel warranty) and the warranty is fully honoured in the Republic. So not only are you saving a fortune on the car, you get another year of full manufacturer warranty. A year old Vectra bought up north will have the same amount of warranty as a new one here.

Hard to beat to be honest.

Henry Ford III

colm_mcm wrote:

that's not entirely accurate, for instance, who in their right mind is going to pay €33,000 for an 03 Pug 607?

Also it should be noted, that they are comparing prices advertised here with actual prices people paid in thr UK. Nobody pays the asking price for cars!

I wouldn't pay €5000 for one, but with respect that isn't the point. It's relative value is the only yardstick here.

Nobody pays full price in the UK either.

The dealers (you incl.) are in a bind here. Used cars are overpriced, mainly due to VRT, and therefore used stock is expensive.

Not all customers are cash buyers, and many don't have the time nor ability to buy a good used car abroad.

As long as they have trade ins, dealers are safe.

kluivert

PauloMN wrote:

Depends on what you are looking for. I've priced Vectras up north, and reckon I can save around €4k on a similar model here, even after paying VRT.

Popular UK fleet cars (such as the Vectra) depreciate a lot in their first year and hence make great used buys.

I also contacted Opel about the warranty. Vauxhall give a 3 year warranty in the UK (compared with the 2 year Opel warranty) and the warranty is fully honoured in the Republic. So not only are you saving a fortune on the car, you get another year of full manufacturer warranty. A year old Vectra bought up north will have the same amount of warranty as a new one here.

Hard to beat to be honest.

Brits love 1.6 cars where as in Ireland we have 1.4's, so picking up a 1.4 Astra in Newry or Belfast is a big saving over the price you would have to pay for it here.

Please note that VRO is increasing open market values on cars to spot people importing. See the lastest two VRT threads, this is a sandal

loyatemu

kluivert wrote:

...this is a sandal

kluivert

loyatemu wrote:

Scandal.......:D

mike65

Cyril McHugh (SIMI) was just on The Last Word justifiing the prices of franchised dealers....

Mike.

Uuuh Patsy

So is there any good used car websites for NI?
Autotrader is the only half decent one I've found.

kluivert

If you go to the car makers website for the uk "co.uk"

www.vauxhall.co.uk
www.vw.co.uk

etc

search used cars, if your looking for a post code for the North (bt35 7nb)
this is the centre of Newry so you can start your search from there. Personally I think you can save money on Vectra's up in Newry.

bazz26

Cars across in the Irish sea are generally cheaper than up in NI and the choice is also better.

jesus_thats_gre

This is hardly new news now in fairness.. It has been the case for 10 years.. Ironically, people in the UK have been told to go to mainland Europe to save money for the same amount of time.. We are being doubly fooked..

Uuuh Patsy

bazz26 wrote:

Cars across in the Irish sea are generally cheaper than up in NI and the choice is also better.

Is there anyway of checking a car thats being sold in the UK to ensure its legitimate? How long do you have (or can you get away with) before paying the VRT?

Anan1

Uuuh Patsy wrote:

Is there anyway of checking a car thats being sold in the UK to ensure its legitimate? How long do you have (or can you get away with) before paying the VRT?

You can do an HPI check to see whether it's been stolen, the subject of an insurance claim, etc. Once you bring the car back, you have 24 hours to pay the VRT and register the car here.

Uuuh Patsy

Anan1 wrote:

You can do an HPI check to see whether it's been stolen, the subject of an insurance claim, etc. Once you bring the car back, you have 24 hours to pay the VRT and register the car here.

So what happens after the 24hrs?

bazz26

The car has to be registered here with the VRO office and the VRT duty paid on the car. You can then go and register the car with the Motor Tax office and they issue you with a licence number for the car. Failure to pay the VRT on the car means you cannot register the car on Irish licence plates. You may get away with driving around on UK plates for a couple of weeks or months but Customs can and will do checks into your background. They can turn up at your door with the Gardai at any time of the day and demand that the VRT duty be paid on the car or they will impound it. Apparently the Customs people have more powers than the Gardai in these matters. The Gardai are only there to make sure everything is done legally. This happened to someone I know and they turned up at 9 at night.