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What car will cost me less in tax than my 2007 Golf?

I have a 2007 VW Golf diesel with 44,000 miles on the clock. I wish to change it for a similarly sized 08/09 car with lower tax. My annual mileage is about 12,000-14,000 miles. Which cars would you recomend and how much should I receive for my own one?

Thanks

Mary Hughes (Westport)

Sep 2010 Filed under: choosing used car

Expert answer

Hi Mary,

A 2007 TDi Golf with your mileage would retail at a main dealer for about €13,000 - €14,000. You will most likely get offered a bit less than this, so perhaps you could expect around €12,000. You don't mention a budget but we can give you a few ideas. Most of the equivalent cars, post 2008 will be cheap to tax. 

For example, a 2009 1.6 TDi Golf, which has emissions of 118g/km (Band A) would cost you around €22,000. Here is an example of one from a main dealer in Naas. This would also be the newer shape model too, although I am not sure you want to go for another Golf? You could get something of a similar theme with the Skoda Octavia. A 2008 model like this costs around €17,000 and would give you a little more space and would still be in Band B with road tax of €156. 

Something slightly more SUV-like would be nice too. The Nissan Qashqai has a great reputation and owners love them. You could have a 2008 Qashqai, like this would cost around €19,000 and this example here has very low mileage. This still has emissions of 139g/km, so would only cost €156 to tax each year. This would be a great buy and isn't a major jump, financially. 

I think you might like the Qashqai, so perhaps you should give it a go?

I hope this helps. 

 


Is a diesel car suited to low annual mileages?

Looking at buying a Ford Galaxy and wondering if it's inappropriate to get a diesel engine, as we only generally drive short distances in the city and annual mileage would only be about 3,000 miles. Would only using the car for short journeys damage the engine and potentially cause it to breakdown more often?

Thanks

Patricia McGuire (Dublin)

Aug 2010 Filed under: diesel

Expert answer

Hi Patricia,

It's true that diesel engines are not as well suited to life spent in town and short journeys. Many of the components can become gummed up, reducing performance and increasing fuel consumption. Diesel versions of many cars are more expensive to buy in the first place too, and it's no point paying that premium unless you're going to make it back over longer annual mileages. Finally, petrol cars are generally quieter, making them more relaxed in town.

Hope that helps


Is 80,000 miles a lot on a 2007 Ford Galaxy?

We are looking for a used Ford Galaxy and wondering if 80,000 miles is a lot on a 2007 1.8 diesel model? We do very low mileage so won't add much to whatever we buy but we want to keep it for a long time. Don't want to buy something that will soon cause trouble! Thanks

Patricia McGuire (Dublin)

Aug 2010 Filed under: choosing used car

Expert answer

Hi Patricia,

A total of 80,000 miles on a three-year old vehicles is indeed on the high side, but if the car was serviced properly then it shouldn't be a problem. If the garage or seller in question can show a full service history and if the price is right then I wouldn't be overly concerned - especially given that you don't plan to drive it a lot.

The issue is that once the car gets over 100,000 miles then the value of the car will decrease quite quickly and there will also be more repairs due because of natural wear and tear. If you only do about 10,000 miles per year then you should see three to four years of good service out of the Galaxy, but I must stress that this car must be perfect to begin with, with a full service record. 

I hope this helps


When are the new Santa Fe and Outlander arriving?

When are the new Hyundai Santa Fe and Mitsubishi Outlander due to go on sale?

Damien Dunne (Dublin)

Aug 2010 Filed under: choosing new car

Expert answer

Hi Damien,

Mitsubishi Ireland has confirmed that the new-look Outlander will be here in November in two- and four-wheel drive formats.

Hyundai confims that a revised Santa Fe will arrive in October boasting a new 2.0-litre turbodiesel engine that drops the car from Band E to Band D emissions yet keeps the same power level.

Hope that information is of help


Why are cars a rip-off in Ireland?

My question is: why are cars in Ireland a rip-off compared to the rest of the world? I live in the USA and just bought a 2010 Hyundai Santa Fe top-of-the-line model with leather, navigation, Onstar system and many more items for just $21,000.

Hyundai changes a few things on each of its models every year. The Santa Fe in Ireland has been the same since the model was realesed in 2007. Why are the specs so bad in Irish cars? And why are the people putting up with it? Who makes the decision to sell cars like that in Ireland?

The cars in the UK are much better spec wise. If you look at people carriers, the options in Ireland are so small and silly. Take a look at the new 2011 Toyota Sienna. It is a very nice car. Why can Irish people not get these kinds of cars?

Thanks, Raymond

RAYMOND FINUCANE (USA)

Aug 2010 Filed under: taxation

Expert answer

Hello Raymond,

One word: tax. The United States and our near neighbours the UK aren't subject to anything like the taxation that we are when it comes to cars. The base price of our cars before you add VAT and Vehicle Registration Tax (VRT) have always been among the lowest in Europe. But when you add the taxes obviously the cars start becoming expensive. 

But also, because these taxes are also on optional extras (including safety features) then car distributors often have to bring in very basic versions so that the ordinary buyer can afford them. Hence, items that you would normally see as standard in other markets have often been taken out, even if this is something like ESP, which is a life-saving safety device. 

Those selling the cars have to do this because of how much of the car's value is going to the Government coffers. It has long been an issue in Ireland and one that the EU have taken a strong interest in too, because it sees it as double taxation on an item, which is against EU law. 

There are also other issues in relation to strengths of currencies at any given time and also that the USA has a manufacturing supply, so specific US-built cars are sold there and aren't treated as imported vehicles. Of course the US is a massive market and hence economies of scale come into play, where as Ireland is a tiny market in comparison.

Prices have come down here because at least now cars are taxed on their CO2 emissions and not their engine size, which was the case until July 2008 and made little sense. It meant that nobody bought diesel cars but instead bought small, underpowered petrol ones instead. 

With petrol (or should I say 'gas') much cheaper in the US, it has always been easier to buy V6, V8 or even V12 petrol cars there too.

Obviously it isn't ideal for us here in Ireland, but in Europe there are many countries just like us, including Denmark, Norway and Portugal so we are not alone. Just count yourself lucky that you are buying in the US!

I hope this answers your question.


How much should it cost to replace a head gasket?

How much would it cost to have a head gasket replaced in a 2008 Hyundai Santa Fe diesel?

Regards, John

John Dunne (Dublin)

Aug 2010 Filed under: servicing

Expert answer

Hi John,

We contacted Hyundai direct and the cost of the parts required - assuming nothing else needs to be done of course - is €250 plus VAT of course. Hyundai quotes about nine hours of labour. The actual hourly rate will vary from garage to garage so try to get a fixed quote before you get the work done. With head gaskets there's always the possibility of other work required too, such as skimming the head.

Hope that helps,


Should I buy new or second-hand with up to €30k?

I'm thinking of trading in my car for scrappage at the moment before some of the deals end and I am thinking of spending €25k - €30k.

I have been looking at the Renault Laguna and Opel Insignia for the scrappage instead of a second-hand car. I am looking for something with a decent boot and a bit of poke in it as I'm upgrading from a Corsa!

After thinking about it for a while I then thought about maybe going for a second-hand car for resale value and depreciation of a new car especially since it's coming close to the end of the year and it'll be a year old in a few months.

On the second-hand range I was considering maybe a BMW 5 Series, Audi A4 or A6 or something similiar in that range. Any suggestions or ideas on what to do or look for in a car to maximise the purchase and keep resale value? I am open to suggestions on other makes and models I may have skipped over. Thanks.

Alan Crookes (Portmarnock)

Aug 2010 Filed under: choosing used car

Expert answer

Hi Alan

The scrappage scheme has been good news and as you might have seen today SIMI is calling for an extension of this. Unless this happens, there would be no point in you getting a new car at the end of the year under scrappage because the €1,500 that you would get off this in the case of something like an Insignia would not be as much as you could lose eventually by buying a car later in the year. 

Sure enough, you could buy the Laguna and get €3,000 off. It isn't an awful car, but there really isn't anything remarkable about it and I personally wouldn't spend over €20,000 on one. I actually think the Renault Fluence is a better buy than the Laguna and it costs much less. It is a fine big car and really well equipped. 

However, with your budget we could do a whole lot better. Supposing that you get at least €1,000 for your Corsa, then you still have a generous budget. There is always the temptation to look at the German cars and as long as you realise that these can get pricey to service and run as they get older, they can be a great buy. 

You have a staggering amount of choice. For sheer ease of ownership I have noticed that Lexus IS models are really good value now. You can get a 2008 IS 220d for under €25k and that would be a pretty nice car to own. Here is an example. 

If you were buying new or almost new, this 2010 Subaru Legacy diesel is also within your budget. 

However, you could go a little larger and get yourself a 2007 BMW 520d. This example is from a main dealer and has tiny mileage and would be a really nice car to own. It has done just 20,000km and is an automatic too with a nice spec for just €28,000. I would find it very hard to pass up on this car to be honest. You could opt for one with a manual gearbox and get lower road tax, but to be honest, this is where my money would go.

I hope this helps


I need a mid-sized family car for about 10,000km a year

Hi there,

I need to buy a mid-sized family car that has to do me for about five years. Both my wife and I cycle to work so it would be in the driveway most of the time though I'd say we still clock up about 10,000 km a year.

My budget is between €9,000 and €10,000 and I was hoping to buy a 2007 car. I had been looking at the Ford Focus diesel estate as it is economical, roomy and decent to drive, but any out there in my price range tend to have a lot of miles on the clock.

I'm now looking at petrol Jettas, which are nice cars but the fuel economy concerns me as I know petrol cars are falling out of favour. Any advice?

Mark

Mark Jordan (Dublin)

Aug 2010 Filed under: choosing used car

Expert answer

Hi Mark,

Thank you for contacting us. I can understand your dilemma in that you are going to be using your car quite sparingly, but you need it to be something that can last a long time. We know from speaking to you since that you have a Ford Focus that you might sell privately or hope to get around €2,000 for as a trade-in, so given that your budget is around €10,000, which is decent enough.

I take your point on the Ford Focus diesel estates. They tend to have quite hard lives as many are bought by business users more so than private individuals and they often have mega miles on them and hence can be tatty. They also often have the older 1.8-litre diesel, which is a bit of a tractor to be honest.

You mention that you are going to be keeping this car for about five years, so as such I wouldn't worry too much about whether petrol cars are falling out of favour because your used car is unlikely to be worth a whole lot in five years with another 50,000km on the clock.

You don't really do a lot of miles per year anyway, so running a petrol car might not end up being too expensive. Also you could perhaps look at buying something with slightly higher mileage (as long as it is diesel) because these cars would be well able to put up with your low mileage. For example, you mentioned the Volkswagen Jetta, which is a fine car. You could have a diesel version, with slightly more mileage, for well within your price range. Here is one from a SIMI dealer for €8,900.

I would be inclined to go for a VW Golf with your budget. You could have a 2005 model with low mileage for €9,000. This one here caught our eye. It comes from a main dealer and will have a good warranty. These cars will put up with lots of mileage and are also likely to hold their value well. This example would still have lots of life left in it after 50,000km and might actually be worth a few quid too.

I hope this helps. Come back to us by adding comments below if you want to discuss this further.


How much VRT on importing UK Mercedes E-Class?

How much VRT would I expect to pay on a new Mercedes-Benz E 220 CDI diesel valued £28,800 sterling with emissions of 154g/km?

Eamonn Gorman (Mullingar)

Aug 2010 Filed under: VRT

Expert answer

Hi Eamonn,

With today's exchange rate you should land that car in Ireland for about €44,510. VRT is 20% of the open market value, as the emissions put the car in Band C, which equates to about €7,121.

Bear in mind that, if you add options to this car, the value of those will be used to calculate the VRT, so it could be higher depending on the exact specification of your car.

Hope that helps,


Mondeo or Avensis for taxi?

Hi Guys,

I need advice on which car of two to buy: 2006 Mondeo 1.8 petrol or a 2006 Avensis 1.6 petrol. It's to be used as a taxi, but that the Avensis is €2,000 dearer to buy. Which car would you opt for and why? Just need help deciding, thanks.

David

David Lee (Gormanston)

Aug 2010 Filed under: taxi

Expert answer

Hi David,

A quick look at any taxi rank or a chat with any taxi driver will answer this question for you pretty quickly. For any sort of high-mileage, high-intensity task such as taxi driving, then it is probably worth paying that bit extra for the Avensis because long distance drivers swear by them as they are capable of racking up huge mileage and prove themselves to be reliable. 

That is not to say that the Mondeo is a bad choice - they have served Gardai up and down the country for a number of generations now at this stage. However if you are investing your own money, there will be more value in a high-mileage Avensis than there will be in a high-mileage Mondeo. Obviously it would make more sense if either of these were diesel rather than petrol, but I am pretty sure the Avensis will age better and will put up with more abuse than the Ford. 

I hope this helps.