New motor tax and VRT regime. Links + calculations

Nodnedlog

OisinT wrote: »

I'm not sure that I agree. If the government is really doing this to positively effect climate change this is not the way to do it.
Especially dangling a good deal in front of everyone and then changing it at a later date.
If the government really wants to be fair and do something to get people to buy more fuel efficient and less polluting cars, the tax should be changed on all cars purchased starting in July regardless of age on a scaled CO2 emissions and km/l regime.

This may have been suggested already on this thread and I am open to reasons why it might be unfeasible but it seems frustratingly simple to me:

I think the fairest way of all would be to allow pre July 2008 petrols to stay in the old system if they so wished (as announced around budget time).
Along with this, allow any greener cars imported or not to opt into the emissions system (As long as the car has a COC). After July 2008 all cars are on new ststem (This is in relation to road tax btw).

Some people will still but luxury high polluting cars, they can pay the price for this. Everyone is happy, we reduce our car emissions and people have a choice. Forget the loss in revenue for the govt, they'll find a way they always do, either way we'll pay. John Gormley has back tracked on too many policy agreements for my liking even though I voted green due to the lack of a decent alternative. He seems to have been swamped by whatever wranglings goes on in govt?

Bee

Nodnedlog wrote: »

John Gormley has back tracked on too many policy agreements for my liking even though I voted green due to the lack of a decent alternative. He seems to have been swamped by whatever wranglings goes on in govt?

Gormless is a total hypocritical idiot who could not care less about good people like you who were unfortunatley swayed by their lies and propaganda.

Remember the Un-Green party have now buggererd off out of the country on Paddy's day junkets and to make things worse they will aslo screw you further in taxes to pay a private company for "carbon credits" using your money to offset their junketeering flights!

Now that it seems that there should be a reduction on Diesel cars post July would anyone like to comment why the Green/FFer's are not taking any action on the growing mark up in Diesel prices over petrol?

There is less excise duty paid on diesel by wholesalers yet they have greatly increased the diesel mark up to rake in extra profits. This is directly related to Gormless's incompetence.

Do you think Goemless and the other parasites will take any steps to bring the prices in line? Nope, another casualty of the VRT rip-off!

billybarry

Hi are you certain that a second hand car imported after 1st july will qualify for new VRT rates and new emmission tax rates???


Im bringing in a 02 mondeo at the moment but would i be mad to not wait til july???

kindalen

what engine is in the mondeo? actually the only real important question is the co2 figure.diesel after july,petrol before...could be roughly used as a rule of thumb.

danjo

unkel wrote: »

A simple VRT calculation:

A BMW 320d ES (CO2 131 g/km) lists for €47.800. The current VRT rate is 30%, which means that €14,340 (30% of €47.800) is VRT. The list price excluding VRT is €47.800 minus €14,340 = €33,460

The new VRT rate is 16% (band . This means that the the new list price is €33,460 / (1-0.16) = €39,833. A saving of 8 grand!

Just looking at the figures above i think there is an error.
The €47,800 = 130% therefore 100%= €36769. Add on the new rate of 16% and the result is: €42,652. Still a saving of €5K.

The problem with the original calculation is that 30% of the tax was included when the subtraction was made. Am I wrong?

The_Conductor

billybarry wrote:

Hi are you certain that a second hand car imported after 1st july will qualify for new VRT rates and new emmission tax rates???


Im bringing in a 02 mondeo at the moment but would i be mad to not wait til july???

Depending on the engine size- that will determine which VRT band you fall into. Re: new emission based motor tax- only 2008 cars will qualify- your 2002 Mondeo will not.

Are you better off bringing it in now or waiting- depends. You could actually end up paying more on VRT, by waiting, and you'll not benefit from emissions based roadtax at all, so depending on what the VRT situation is- you may be better off just biting the bullet and being done with it.

The_Conductor

kindalen wrote:

question is the co2 figure.diesel after july,petrol before...could be roughly used as a rule of thumb.

Incorrect- its a 2002 car, so the only effect post July will be the different VRT rates- everything else is engine size.

Gah- I hate Gormley.

copacetic

danjo wrote: »

Just looking at the figures above i think there is an error.
The €47,800 = 130% therefore 100%= €36769. Add on the new rate of 16% and the result is: €42,652. Still a saving of €5K.

The problem with the original calculation is that 30% of the tax was included when the subtraction was made. Am I wrong?

you are wrong, have a look back at much discussion earlier in the thread, vrt is calculated including itself, so the price is 100% including 30% vrt. rather than adding 30% vrt at the end.

FreudianSlippers

ok so now I'm quite confused about the taxes.
Lets say I want to buy a 2006 BMW 320CD. Just from a quick search of autotrader.ie and .co.uk it looks like they are about €18,000 in Ireland and £12,000 (~€15,500).
What would be the total cost of those cars to purchase (VAT & VRT included)?
Using a specific example would really help me make this more clear in my mind.
Thanks in advance.

Esel

OisinT wrote: »

ok so now I'm quite confused about the taxes.
Lets say I want to buy a 2006 BMW 320CD. Just from a quick search of autotrader.ie and .co.uk it looks like they are about €18,000 in Ireland and £12,000 (~€15,500).
What would be the total cost of those cars to purchase (VAT & VRT included)?
Using a specific example would really help me make this more clear in my mind.
Thanks in advance.

Use the VRT calculator on www.ros.ie

Mc-BigE

OisinT wrote: »

ok so now I'm quite confused about the taxes.
Lets say I want to buy a 2006 BMW 320CD. Just from a quick search of autotrader.ie and .co.uk it looks like they are about €18,000 in Ireland

Show me the Irish 2006 320cd car for 18,000 i'd buy that!

for reference:
http://www.carzone.ie/usedcars/index.cfm?fuseaction=search&MakeID=3&xMakeID=3&ColourID=&xColourID=&ModelID=20&xModelID=20&Doors=&BodyID=4232&Engine_Min=&Year_Min=2006&Engine_Max=&Year_Max=2006&Price_Min=&Price_Min_integer=Minimum+price+entered+was+not+an+integer.&CountyID=&xCountyID=&Price_Max=&Price_Max_integer=Maximum+price+entered+was+not+an+integer.&BusinessID=&xBusinessID=&IsPrivateSale=&FuelID=2&Mileage_Max=&Mileage_Max_integer=Max+mileage+entered+was+not+an+integer.&SortBy=MakeAsc&MaxRows=50&InsertPeriod=&ResultFormat=&submit=Find+%3E%3E

bobbyta

Does any one know that since the Minister did a u-turn on the motor tax for imported cars (even the imported cars have to be 08 now http://www.environ.ie/en/LocalGovernment/MotorTax/News/MainBody,16861,en.htm ) did he do the same with the VRT. At the moment i will have to pay 30% on a 2 year old car imported form the UK but after July it could be 20% unless he has changed this to only apply to 08 cars imported like he did with the road tax. I have tried to ring the TAX office but can't get thru. Probably get a quciker answer from Boards.ie than by the time i get thru to the correct dept in the TAX office.

Thanks!!!!!!!

Mc-BigE

bobbyta wrote: »

Does any one know that since the Minister did a u-turn on the motor tax for imported cars (even the imported cars have to be 08 now http://www.environ.ie/en/LocalGovernment/MotorTax/News/MainBody,16861,en.htm ) did he do the same with the VRT. At the moment i will have to pay 30% on a 2 year old car imported form the UK but after July it could be 20% unless he has changed this to only apply to 08 cars imported like he did with the road tax. I have tried to ring the TAX office but can't get thru. Probably get a quciker answer from Boards.ie than by the time i get thru to the correct dept in the TAX office.

Thanks!!!!!!!

VRT hasn't changed from the Budget, so wait until july to import it. but you will pay cc based motor tax.

bobbyta

Mc-BigE wrote: »

VRT hasn't changed from the Budget, so wait until july to import it. but you will pay cc based motor tax.

Cheers MC-BigE
But i am wondering will he still us the old VRT system for cars imported that are not 08 even after July, so only appling the new VRT to imported 08 cars. I can't see this happening but you would never know he made a u-turn on the road tax side of it.

GavMan

bobbyta wrote: »

Cheers MC-BigE
But i am wondering will he still us the old VRT system for cars imported that are not 08 even after July, so only appling the new VRT to imported 08 cars. I can't see this happening but you would never know he made a u-turn on the road tax side of it.

Good Lord :rolleyes:

He just told you that the new VRT announced in the budget hasn't changed. After July they will not use the old VRT bands!
Say you import an 07 BMW 318D after July 2008, you will pay a new lower VRT rate, but will still pay CC based road tax as its an 07 car

Any clearer for you?

Mc-BigE

bobbyta, see thread #1 but ignore the Motor tax part;)

bobbyta

Mc-BigE cheers the example used was a new BMW, so i had to ask if it applied to older cars. The motor tax would have been great but it turned out too good to be true, but will still import the car. Better deal and better car for second hand.

Cheers.

PowerHouseDan

I heard on the radio that a few motor companies are offering the vrt off cars now instead of waiting till 1st july cause my gf was buyinga yaris but said she would wait till july 1st, are they just selling at a lower cost or is there a way around getting the new vrt rules in place now?

The_Conductor

PowerHouseDan wrote: »

are they just selling at a lower cost or is there a way around getting the new vrt rules in place now?

They are absorbing the cost differential, there is no way of "getting around the vrt rules"- believe you me Revenue of all people are well atuned at getting their pound of flesh........

Mental Mickey

Probably a dumb question here, but:

How will these new regulations affect someone like me(ie a disabled driver), who is exempt from VAT/VRT???

I've probably answered my own question there, but if I haven't, please enlighten me.

The_Conductor

Mental Mickey wrote: »

Probably a dumb question here, but:

How will these new regulations affect someone like me(ie a disabled driver), who is exempt from VAT/VRT???

I've probably answered my own question there, but if I haven't, please enlighten me.

It will only affect you when you go to trade in your car. If you have a larger car with higher emissions- its resale value will be very much lower than a more economical car- and garages will offer you a much lesser value for it.

Its all relative though- if for some reason or another the car model is in demand as a second hand- then you could be fine- but its a bit like looking in a crystal ball. Some models obviously have traditionally held better residual values than other- its something to keep in mind.......

PowerHouseDan

thats what i thought because the dealer told me she could avail of the new tax rules but would have to wait until 1july in our to get the lower vrt cost. Thanks

smccarrick wrote: »

They are absorbing the cost differential, there is no way of "getting around the vrt rules"- believe you me Revenue of all people are well atuned at getting their pound of flesh........

Mental Mickey

smccarrick wrote: »

It will only affect you when you go to trade in your car. If you have a larger car with higher emissions- its resale value will be very much lower than a more economical car- and garages will offer you a much lesser value for it.

Its all relative though- if for some reason or another the car model is in demand as a second hand- then you could be fine- but its a bit like looking in a crystal ball. Some models obviously have traditionally held better residual values than other- its something to keep in mind.......

I'm trading in a 1 litre Nissan Micra auto for a 1.4l Ford Fiesta auto. I'm upsizing.

The_Conductor

Mental Mickey wrote: »

I'm trading in a 1 litre Nissan Micra auto for a 1.4l Ford Fiesta auto. I'm upsizing.

Given that you don't pay VAT or VRT on the car initially- I'd suggest getting a high spec Fiesta, the Sports Pack is normally popular- that should increase its popularity when it comes to resell it. Perhaps some of the others here can give you a few other suggestions.

Mental Mickey

smccarrick wrote: »

Given that you don't pay VAT or VRT on the car initially- I'd suggest getting a high spec Fiesta, the Sports Pack is normally popular- that should increase its popularity when it comes to resell it. Perhaps some of the others here can give you a few other suggestions.

Excuse my ignorance, but what's in the "sports pack"?

The_Conductor

Mental Mickey wrote: »

Excuse my ignorance, but what's in the "sports pack"?

The seats are different, you have spoilers, possibly a hardened suspension (very nice driving experience on good roads- but can be a bit jarring in potholes), the engine is tuned differently, the upholstery will probably be different etc. Ford actually do a very good magazine which all the distributors have which describes all the options to you.

Mental Mickey

smccarrick wrote: »

The seats are different, you have spoilers, possibly a hardened suspension (very nice driving experience on good roads- but can be a bit jarring in potholes), the engine is tuned differently, the upholstery will probably be different etc. Ford actually do a very good magazine which all the distributors have which describes all the options to you.

I have a Fiesta booklet that I got from Ford. I'll go take a look.

Mental Mickey

Could a sticky be put up here to explain the reclaiming of VRT/VAT for Disabled Drivers/Passengers???

I for one find the whole process very confusing and time consuming

Thanks

MM

j2dab

If the VRT is still worked out by using the Emission bands, how do they work out which band an early 90's car would fall into? As there are no Emission stats for 90's cars?

Sorry if this question has already been answered I tried a few pages but couldnt do 33!!

dannydif

ive just bought a bmw 520d m sport manual first regerstered in england
jan 2008 if i keep it of the road till july will the vrt rate be 16%