High VRT Estimate for importing a car

oxygen_old

Hey. I was looking online at a Dodge Caliber to import from England, ’06 with around 50,000 miles on the clock. What I’m looking at it £5,600 (roughly €6,300). But when I went to the VRT calculator website for importing a car, it put the Open Market Value at €13,000, costing over €3,000 VRT. This seems a bit high, considering Im only looking to pay around 6,000. Does anyone know, can I get the OMV renegotiated?

Just to note, I was following up from a Sunday Times article I was reading, which also priced used Dodge Caliber's at half the price of the Gov calcuated VRT.

Thanks

bazz26

The Open Market Selling Price (OMSP) is what Revenue value the car to worth here, this has no bareing on the price you paid for it or the value of the car in another country. In order to appeal the OMSP you first have to pay the VRT as a percentage of the OMSP. You then go through the appeal process which can take a few months, where you have to prove, ie carzone or garage adverts for a similar vehicle that the OMSP that revenue valued the car at is incorrect.

More information:
http://www.revenue.ie/en/tax/vrt/leaflets/vrt6.html

alias no.9

You have to pay up before you can appeal, looking on Carzone, there's very few for sale to get a decent guide on used prices. Don't know what model you're looking at (have to assume it's a diesel), but there new prices listed on carzone for an SE @ ~ €18k and an SXT @ €21k. With few exceptions, cars will lose ~50% of their value in the first 3 years leaving a 2007 SE @ ~ 9k and a 2007 SXT @ €10.5k so 2006 models would be €1k - €2K less. That's all assuming that a Dodge will have strong residuals.
Taking an example of a car with very strong residuals, the Mini, a new base model Mini One 1.4 costs a little shy of €20k. A 3 year old (2007) example with 50k miles is valued by the revenue at a little shy of €12k or 60% of the list price, Carzone prices start at ~€13k. A 4 year old (2006) with the same mileage is valued by them at €10,300 or 51.5% of the list price, Carzone prices start at ~€12k.
Taking an example of a car with very poor residuals, the reasonably priced Chevrolet Lacetti 1.4 sx, yours new for €17,595. A 3 year old (2007) example with 50k miles is valued by the revenue at €7,291 or 41% residual, Carzone prices start at €6.5k. A 4 year old (2006) with the same mileage is valued by them at just shy of €6K or 34% residual value, Carzone prices start at ~€5k.
I think it reasonable to suggest that the residuals on the Dodge would be much closer to that of the Chevrolet than they would to the Mini. A figure of close to 40% of the list price would be reasonable estimate of residual after 4 years. With such a small number out there, it’ll be very hard to prove but you could start by getting a written quote from all of the dealers with second hand Callibers for a cash price. It’s also worth contacting some Dodge dealers for a new price, I’ve no doubt you’d get a couple of grand off a new one which would make the €13k figure for a 4 year old example look all the more ridiculous.
All that said, you have to cough up the money up front to get the right to appeal and your appeal will always be a gamble. Do you really want a Calliber that much? Even if the VRT was halved, that’s close to €8k (car + VRT) plus travel costs. If any of the ones listed on Carzone are at dealers close to you, why not make a cheeky cash offer of €8.5 k and be prepared to go €9k and have the benefit of a warranty? The worst that can happen is that they decline your offer.

oxygen_old

Thanks for the replies guys. I think they are assuming the residual value is more in line with a mini than a Chevrolet. There is no way you would get €13,000 for a '06 Dodge Caliber. The sunday times article was saying how cheap they can get second hand. There really no way I could fight this. I think I will just have to accept that they are looking to charge 3,00 VRT. I wont pay that.

I just think its a cool car cause there are so few of them around Ireland. There is a dodge dealership just up the road from me. I think I will pop in and see what the story is on a new one.

Mylow

oxygen wrote: »

Hey. I was looking online at a Dodge Caliber to import from England, ’06 with around 50,000 miles on the clock. What I’m looking at it £5,600 (roughly €6,300). But when I went to the VRT calculator website for importing a car, it put the Open Market Value at €13,000, costing over €3,000 VRT.

Take a look at http://www.dodge.ie/used_car/index.html
07 one for €13k, that tells me an 06 cannot have a OMSP of €13k. I was given crazy VRT price on a BMW, I sent copies of adverts along with my appeal to revenue, I got €1800 back, though it took 5 months.

oxygen_old

Thanks for that Mylow. Ill have to have a think about it, if there is a chance I might not get the OMSP reduced, I would be a bit of a disaster and I cant see them handing out money in the current climate.

SpannerMonkey

a while ago i was looking at importing a BMW 6 series i could buy in uk for 28000 euros the vrt would be an extra 35000 euros on top:eek: thats more than the car cost its a nuts system :mad:

oxygen_old

thats shocking. Yea it definitely seems to overprice the cars to either drum up extra VRT or prevent buying imported cars

Mylow

oxygen wrote: »

Thanks for that Mylow. Ill have to have a think about it, if there is a chance I might not get the OMSP reduced, I would be a bit of a disaster and I cant see them handing out money in the current climate.

They will, I know 2 people who have got refunds in last 3 months. Mine was 12 months ago. You need to keep an eye on all the car sales sites and keep copies of asking price. This will be a fair bit of the achieved price, possibly 10%.

If you can show the OMSP does not reflect the actual selling/asking prices they will refund you.

rugbyman

this thread is very interesting.
Question, if an appeal is successful, like Mylows, do the authorities adjust the vrt figures accordingly for the next person to import a similiar vehicle?

Rugbyman

oxygen_old

Also, Im sure someone would have told me if it could be done, but is there any way you can appeal the VRT before you pay it, or even pay for the car.

Henry Ford III

oxygen wrote: »

Also, Im sure someone would have told me if it could be done, but is there any way you can appeal the VRT before you pay it, or even pay for the car.

No.

bazz26

oxygen wrote: »

Also, Im sure someone would have told me if it could be done, but is there any way you can appeal the VRT before you pay it, or even pay for the car.

No, the appeal process outlined is pretty water tight. You pay the rate, make the appeal and if you win, you get a refund eventually. It means if you lose they don't have to go chase you for the outstanding amount.

alias no.9

The best way of getting a quick response to your appeal is to appeal immediately, when after 30 days you haven't received a decision (and you won't because of the backlog), you then lodge a second stage appeal on the grounds of not having received a decision within the required 30 days. Request an immediate decision and the return of the outstanding money.

miller77

The Open Market Selling Price (OMSP) is 90% of the market value of the vehicle, see http://www.vrt.ie/
This means the market Value price of your 06 Dodge Caliber with 50,000 miles is €14,300 set by SIMI the official voice of the motor industry in Ireland and the Open Market selling Price of your 06 Dodge Caliber is €13,000. The Dodge wouldn't be around Carzone to long at that bargain price!!!!

oxygen_old

I pressume by the smiley Miller, thats sarcasim. I think at €13,000 for a 3 year old car, it would be hanging around carzone for a long long time.