[article]60,000 used cars imported this year!

mike65

Hard to credit but hey it must be true - its in "de paper"

By Paul Kelly

MORE than 60,000 Irish motorists so far this year have imported used cars to bypass the exorbitant prices of second-hand vehicles here — with some making savings of up to €20,000.

Punitive rates of Vehicle Registration Tax (VRT) of up to 30% on new cars are also making second-hand motors up to 40% more expensive here than in Britain or the North.

An Irish Examiner investigation published today reveals how buyers of used cars can still make massive savings despite having to pay VRT when they arrive back in Ireland.

The number of secondhand motors being imported by bargain-savvy buyers so far this year now equals the amount of new cars sold annually in Ireland in the early 1990s.

Last night consumer champions and motoring organisations gave their backing to consumers who buy abroad to dodge Ireland’s sky-high prices.

“There’s no reason that consumers should not buy their cars abroad as they can make significant savings,” said Conor Faughnan from the AA Ireland motoring organisation.

“We are very frustrated by VRT — quite apart from the costs it adds to cars — as it is effectively a trade barrier preventing the free movement of second-hand cars between Ireland and the UK.”

Figures from the Revenue Commissioners show that 57.2% of imported cars last year came from Britain, 22.7% were from the North and 17.9% were from Japan.

Consumers stand to make the biggest savings on luxury cars like Volvos, Mercedes or BMWs, but can also save smaller amounts on family runarounds.

Second-hand car dealers are also helping customers make savings by buying used motors from the North on their behalf and then re-registering them with Irish plates.

Paddy Comyn, editor of Car Buyers Guide magazine, said the importation of cars was big business as consumers were being lured by big savings and better choice. “More people are doing it and it has become quite easy — 60,000 cars in a year is quite a serious number when you consider around 110,000 new cars are sold a year,” he said.

Industry experts predict the volume of cars being imported into Ireland will lead to a glut of second-hand cars on Irish garage forecourts — with prices tumbling within 18 months.

Last night, the Society of the Irish Motor Industry (SIMI), which represents the car trade, called for VRT to be scrapped, saying the tax meant high prices for the Irish consumer.

“We want the Government to get rid of VRT. It’s a terrible abomination for Irish people to have to pay.”

Some bargin "Autobahnstormers" to be had soon then!

Mike.

Seth Brundle

I read that earlier. It also listed a load of savings on different cars. It did however, fail to mention that the spec of the imports would be higher than the car they are comparing it to!

drdre

what cars were there saving of upto 20k, also is there any list published on price comparision to ireland and uk.

3ps

It's all true!

I have now imported 3 vehicles into Ireland:

- Passat from UK.. saving €4000 off stupid main stealer sticker prices
- 1972 Merc from Germany... no saving really
- Motorhome from Germany... saving €10000 - €15000 of stupid Irish dealer prices!!!

maidhc

Some of the savings d'examiner suggested were a little optimistic.

e.g. 5k on an 05 Focus.

From my research, and I can't say I have done a whole lot, you won't save a massive amount of money on a bread and butter car, but will get a higher spec car, and possibly one better cared for. It seems there are fair savings to be made in the BMW end of things though.

You will get great value in Ireland too though if you are prepared to shop around and just be on the look out.

drdre

3ps wrote:

It's all true!

I have now imported 3 vehicles into Ireland:

- Passat from UK.. saving €4000 off stupid main stealer sticker prices
- 1972 Merc from Germany... no saving really
- Motorhome from Germany... saving €10000 - €15000 of stupid Irish dealer prices!!!

would you know what the story is to import a commercial jeep or car for work.how would thetax and stuff work and i heard theres a flat commercial rate is that ture

Tipsy Mac

SIMI would want to be real careful about their (in private) full support for VRT as at this stage people are taking the trip away to get their cars and this is only likely to grow as word spreads. The government are happy enough with it as they are still taking in taxes for the imported cars but the dealers are getting nothing from each of these imports and their sales are likely to take further declines.

peasant

drdre wrote:

would you know what the story is to import a commercial jeep or car for work.how would thetax and stuff work and i heard theres a flat commercial rate is that ture

There is a flat VRT rate for commercials, which is minimal. That's why new commercials are so cheap when compared to the passenger version of the same car, bacause on the commercial you're basically seeing what the passenger version WOULD cost if there was no VRT.

Importing a commercial makes no sense, you won't be saving any money.

maidhc

Tipsy Mac wrote:

SIMI would want to be real careful about their (in private) full support for VRT as at this stage people are taking the trip away to get their cars and this is only likely to grow as word spreads. The government are happy enough with it as they are still taking in taxes for the imported cars but the dealers are getting nothing from each of these imports and their sales are likely to take further declines.

This is great news for the government, it gives great support to the argument that VRT is not a trade distorting measure and instead an internal tax completely compliant with EU law.

You won't even get a commercial in the UK. The Mk1 disco commercial was ridiculed in the UK as to comply with the requirments to get low VRT the console around the handbrake had to be sawed short (loadspace issue) and the alpine lights blocked out (they got to keep the alpine lights after though).

tvr

maidhc wrote:

Some of the savings d'examiner suggested were a little optimistic.

e.g. 5k on an 05 Focus.

From my research, and I can't say I have done a whole lot, you won't save a massive amount of money on a bread and butter car, but will get a higher spec car, and possibly one better cared for. It seems there are fair savings to be made in the BMW end of things though.

You will get great value in Ireland too though if you are prepared to shop around and just be on the look out.

personally i think that is plausable on the older shaped focus , as the uk theres a few 05 old shaped focus mark 1 on sale ex fleet with 25000miles.

Victor

Punitive rates of Vehicle Registration Tax (VRT) of up to 30% on new cars are also making second-hand motors up to 40% more expensive here than in Britain or the North.

I'd love to know how a 30% tax can make something 40% more expensive. More like price gouging by dealers.

Also, they don't mention the trade in the other direction.

Anan1

Victor wrote:

I'd love to know how a 30% tax can make something 40% more expensive. More like price gouging by dealers.

VRT is not 30% of the cost of the car, it's 30% of its value landed here (for a car of over 1900cc). This can easily add 40% to the cost of the car.

maidhc

Anan1 wrote:

VRT is not 30% of the cost of the car, it's 30% of its value landed here (for a car of over 1900cc). This can easily add 40% to the cost of the car.

And don't forget the higher VAT, and the fact you pay VRT on the vat inclusive value.

Seth Brundle

VRT is a recursive tax so you pay VRT on the VRT and the VAT!

maidhc

kbannon wrote:

VRT is a recursive tax so you pay VRT on the VRT and the VAT!

Yes sorry, of course. Even worse.