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We spoke to Jane direct to find out a little more information. She currently lives in Northern Ireland and has a 2008 Nissan Qashqai Tekna to trade in. She wishes to downsize and will be moving to the Republic soon with her new car.

Initially Jane believed that she could bring a car to the south VRT-free so long as it was over six months old, but in fact the legislation states that she must have owned the car herself outside the state for six months before importing it.

Jane fancied changing to a Nissan Note, but was unsure of its reliability. We confirmed that the Note has had no major problems and so Jane is going ahead with a swap for a six-month old Note Tekna with only 4,000 miles on the clock. This is a highly specced version with satnav, alloys, Bluetooth etc.

Expert answer

There has been a huge move towards diesel cars here in Ireland because of the change to the road tax and VRT laws in July 2008.

Since then, as you may or may not know, road tax and VRT are calculated according to a car's CO₂ emissions and because diesel cars use less fuel than petrol ones, their emissions tend to be lower.

When your father bought the Mazda6 in 2008 it may well have been better value than the diesel model. Now, there is much less difference between the price.

Before we move away from Mazda, there is now a very good range of diesel engines in the new Mazda6 and that might make the most cost-effective swap if he was happy with the car he has because you will most likely get the best trade-in price from a Mazda dealer. However, by the sounds of things he wants a change.

Covering only 10,000km a year we previously might have said that there was no real need to buy a diesel because you would not save the extra price of the car in fuel.

This point remains true, but the difference now is that the market has changed so much to diesel that petrol cars are likely to lose their value faster and become increasingly unwanted by used car buyers, so at this size of car, we would say yes, move to diesel. Also, if you do buy new, your father will most likely benefit from lower road tax.

Without knowing a budget it is difficult to point you in the right direction but from the cars you mention I'm guessing the budget is between €25,000 - €35,000. This does offer a lot of choice.

The 2004/2005 BMW 320d is certainly an option. Since the current shape model came out in 2005, we would encourage you to look at these, or even a 2006. The prices of these are quite competitive at the moment. A 2005 320d SE at a SIMI dealer would probably cost you between €15,000 - €17,000.

BMWs are always tempting to buy used, but you must choose one that has been properly serviced and cared for, because they can become more expensive to put right as they get older. The choice of used 320d models at the moment is vast so if you do go down that route, shop around. It is a great car and with the small mileage your Dad does it is unlikely to end up costing you too much.

If you want to go down the new route, there are a few that would spring to mind. The first is the Skoda Superb. This car is really brilliant and huge too. It is well made and loaded with equipment. If your Dad likes comfort then this will be right up his street.

Our choice would be the 2.0-litre TDI Comfort for €27,805. It is excellent value for money and comes with lots of creature comforts (cruise control, climate control, etc.), a 170hp diesel that is powerful, yet still frugal at 5.8 l/100km. Road tax on this car is €302 per year. For me, if I were heading out to buy a family saloon today, I wouldn't pass the Superb.

You mentioned some other cars there. The Jetta isn't a bad car, but it's been out a few years now and is probably due an update, so I wouldn't buy that new. The Audi A4 is nice. A new one is going to cost you from €34,060 before you start looking at optional extras, so a 2009 model would make sense with all the options already added. €35,000 should get you a nice 2009 TDI version with lots of the toys thrown in.

Please feel free to come back to us with more details if you like (just add a comment below), but for me I would probably have the Superb.

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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

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That is a very good question. The scrappage scheme makes sense to a certain number of people, but it certainly isn't for everyone. It was set up to clean up the nation's car park and to that effect is designed to get cars of 10 years or more off the roads. Plus, there is the additional clause that any car bought under scrappage must be from Band A or B, with CO₂ emissions of less than 140g/km, which isn't going to suit all buyers either.

The Government has offered €1,500 off the VRT of the car and while you might argue that you could haggle this off in a cash deal, the fact is that you will get this for even the worst car that could be worth barely €50. Even the most skilled haggler is unlikely to get more than €1,000 off the price of a small car from a cash deal, but you will get this in a scrappage trade-in.

Also, in many cases the manufacturers are offering further incentives for scrappage deals such as additional discounts. In the case of Renault for example, there are thousands given to owners of cars of 8 or 10 years or older that you wouldn't get if you were buying in cash. So in this case scrappage is a strong incentive and is worth it.

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The crew cab did enjoy a golden period in the early part of the last decade when there was a considerable tax break, with minimum VRT being charged on them. As a result, sales boomed for a period until this loophole was closed. Sales of the crew cab models aren't as strong as they used to be, especially since the building trade has been so badly affected by the economic downturn.

However, for someone like you they might still make an awful lot of sense because they offer the best of both worlds. They are useful as work vehicles with generous load bays and strong diesel engines that are capable both of high mileage and also towing duties. As everyday passenger vehicles they aren't as comfortable as a regular car and in some cases they aren't even as comfortable as a normal SUV, as most have a pretty basic chassis.

The main choices are between the Mitsubishi L200, the Toyota Hilux and the Nissan Navara. The L200 Double Cab €26,995 new - that includes a significant price reduction recently. It has a 2.5-litre diesel engine that puts out 136bhp. CO₂ emissions of 228g/km mean that it will cost you €2,050 per annum to tax, which is pretty high.

The Navara has a 2.5-litre diesel engine with 171bhp and that is quite a bit more power than the Mitsubishi and it too has emissions of Band G, at 264g/km. Prices start at €34,135 for the Navara Double Cab.

The Hilux comes with a choice of 2.5- or 3.0-litre diesel engines, with 120- and 170bhp respectively. The Hilux has emissions that are in Band E, so you at least save yourself €1,000 in road tax. Prices start at €29,575 for the 2.5-litre Double Cab model.

Having said all that, the best options are likely to be used where there are huge savings.

A 2007 Navara will cost you €16,500 from an approved SIMI dealer: http://bit.ly/d0uIC8 for example

Or a 2007 Toyota Hilux will cost you €19,000: http://bit.ly/bLloV5

Or a 2006 Mitsubishi L200 will cost you €14,950: http://bit.ly/97foEZ