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It is very true that obtaining finance is a major problem at the moment. A survey by the Peugeot dealer network in late 2009 showed that 71 percent of car finance proposals were being rejected compared to 30 percent in September 2008. In the last 12 months GE Money, Friends First and Lombard Ireland all left the market, which is now dominated by the likes of Permanent TSB, Bank of Scotland Ireland and the two main banks, AIB and Bank of Ireland. Evidence also suggests that the credit union has become a prominent lender for private individuals in the car market. It isn't a free for-all from the credit unions, but if you do have a decent savings record with a credit union they are a very good option.

In most dealerships, if you go through the likes of Permanent TSB, then you will usually need a pretty hefty deposit. Volkswagen Group now have their own bank and are said to be getting very high pass rates. As with most cases, it does depend on the state of your own finances and your ability to pay back the loan.

What seems to be clear is that motor finance is available, but like so many of the radio advertisements will say, ‘terms and conditions apply’. Large deposits and tough credit checks have replaced the sort of one-click, one-signature availability of the recent past

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Hi Paul,

That is a very interesting question. You only have to look at the difference in pricing through various different genre of cars to see that we have not had cars as cheap here in Ireland in years and even when you compare them to prices in Europe things are favourable. This is of course little solace to those who find obtaining credit virtually impossible.

Manufacturers are constantly streamlining methods of production and there is much greater co-operation between manufacturers in terms of powertrain sharing and platform sharing, but the simple explanation of the reduction in prices here in Ireland is of course the easing of taxation slightly. New cars, as I am sure you are aware, are now taxed according to their CO₂ emissions and this means that cars that might once have been subjected to 30 percent VRT under the old system are now only subject to 16 percent, because of advances in engine technology. When you look at cars like the Mercedes-Benz E-Class and BMW 5 Series now with emissions of less than 140g/km, as long as the present taxation system is in place, prices will remain quite low. Manufacturers are also likely to keep prices low to their retailers as every incentive needs to remain in place to keep sales moving throughout a sluggish global economy.

In answering your question, I would say that the lowering of prices certainly hasn't finished, especially here in Ireland. This year there has been a lot of discounting from manufacturers such as Renault who is aggressively targeting market share. Even when scrappage ends in December I can't see an end to this straight away, as next year, without the scrappage incentives, manufacturers and retailers will need to come up with a whole new set of incentives to draw nervous buyers back into the showrooms.

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Hi Paul,

VRT (Vehicle Registration Tax) is the main cost. VRT is chargeable on registration of a motor vehicle in the State. All motor vehicles in the State, other than those brought in temporarily by visitors, must be registered with the Revenue Commissioners. A vehicle must be registered before it can be licensed for road tax purposes.

In the case of cars and small vans, the tax is a percentage of the expected retail price - including all other taxes in the State. This price is known as the Open Market Selling Price or OMSP. The VRO will calculate this tax for you or you may obtain the details online at Vehicle Registration Online Enquiry System.

Full details on how VRT works and all the charges can be found here.

Hope that helps