Expert answer

Hi Richard,

We asked Eddie Coleman of Conlan Crotty Murray & Company Chartered Accountants for some help on this one and here was his response:

"For a self-employed VAT-registered sole trader the most tax efficient vehicle to purchase for business use would be a small commercial van/SUV.  As the private use element of the vehicle is likely to be minimal VAT could be recovered on such a vehicle in the proportion that business use bears to the total usage of the vehicle.  As there should be a high business usage of the vehicle most of the running costs of the vehicle, such as insurance, fuel, maintenance, etc. could be expensed for tax purposes, again in the proportion that business usage bears to overall use of the vehicle.

If an individual decides that a small commercial vehicle is not appropriate and decides to purchase a car then there would be very limited tax deductibility for VAT purposes.  If a car falling into Category A, B or C is acquired, then 20 per cent of the VAT paid on purchase of the vehicle could be recovered where at least 60 per cent or more of the usage of the car is for business purposes.  There is a potential claw back of the VAT recovered if the car is sold within two years of acquisition.

If the car is acquired by way of a hire purchase agreement or loan finance then the vehicle is treated as owned by the individual.  The capital cost in those instances can be claimed by way of an annual capital allowance write-off equivalent to 12.5 per cent of the cost of the vehicle, restricted to business use as a proportion of overall use of the vehicle.  If a new vehicle is being acquired then it may be possible to do so by way of a finance lease.  In such circumstances it may be possible to write-off the capital cost of the vehicle over a shorter time frame, again subject to business use restriction on the allowable tax deduction."

Expert answer

Hi Ignacio,

There are two hybrids that are far cheaper than anything else, but we have to mention both as they’re slightly different in the way their hybrid systems work. The cheapest full hybrid is the Toyota Yaris Hybrid, which starts at €19,250 and which has impressively low CO₂ emissions of just 75g/km.

Toyota has also recently updated the Yaris Hybrid so that it’s much nicer to drive than it used to be. The other is the slightly cheaper Suzuki Baleno 1.2 DualJet, which isn’t a full hybrid like the Yaris, but a mild hybrid that uses a smaller battery and clever starter/generator to take strain off the engine to help save fuel. That emits 94g/km and costs from €18,995.

Expert answer

Hi Debra,

It’s kind of difficult for us to diagnose a car over the internet unfortunately, but it sounds as if you may have a whole host of problems there. You’re quite right in that rattles are often something to do with either the timing belt or chain or the camshaft mechanism, but if you’re getting multiple fault codes on a diagnostic it could be that there’s a bigger issue that is causing lots of systems to develop issues. Have you brought it to a Volkswagen main dealer yet? That would be our recommended course of action.

Expert answer

Hi Fergal,

Well, it depends on which model you're looking at. In general buying an automatic these days doesn't have the fuel consumption (and CO₂) penalties of old, although it's fair to say that not all automatics are equal. They can be very expensive up front though (BMW asks €2,500 for an auto) and, depending on the car, you won't always make that back at resale time. Certainly on a Ford you might struggle with automatic resale, but a BMW or Audi should do better as people expect the auto in those. 

Expert answer

Hi Anne,

Actually, it’s not far off. I’d say, with a bit of practice, you should be able to beat 60-65mpg on a regular basis with that Polo, and to be honest you’re not going to get much better than that from any car. There are plenty of cars with official economy figures up in the 70s and 80s mpg, but those are laboratory figures and damned near impossible to reach in real world driving. If economy is your priority, then I’d stick with that Polo.

Expert answer

Hi John,

Tough call actually, as there’s very little to separate them. The SEAT is a little nicer inside, in terms of layout and quality, but the Hyundai is a little more spacious. Both the 1.6 TDI engine in the SEAT and the 1.7 CRDiin the Hyundai are a touch underpowered but they’re both solidly good from a point of view of emissions and fuel consumption. It really is too close to call, so perhaps it comes down to styling (arguably the SEAT is a bit more handsome) or warranty (the Hyundai’s five-year unlimited mileage one is hard to beat). Best bet is go drive them both and form your own opinion, but to help, here are our reviews:

Hyundai Tucson 1.7 CRDi review

Hyundai Tucson 2.0 CRDi review

SEAT Ateca 1.4 TSI review

SEAT Ateca 2.0 TDI review

Expert answer

Hi Paul,

I’m assuming you’re looking at about a 2005 model year? If so, the official combined fuel economy figure was 42.2mpg, or 6.7 litres per 100km, but the actual fuel consumption will depend significantly on both the condition of the vehicle and your own driving style.

Expert answer

Hi there, 

Assuming that’s the 2.4-litre petrol engined version of the Honda RE4 (better known to us as the third-generation CR-V), you’re looking at around 32mpg overall. We can’t give you more accurate data than that as the model was never homologated for European sales, so that number is extrapolated from the figure given for Australian market cars.

Expert answer

Hi Max,

Well, the official combined fuel economy figure is 51.4mpg, but that sounds a bit optimistic to us. Doing short journeys shouldn’t be a major issue as it’s a petrol engine, but a bit of gentle driving should get you at least past the 40mpg mark, unless you’re stuck in stop-start traffic all the time. I wouldn’t bother using premium petrol, as you’re just wasting your money. The engine is designed to work on standard 95RON pump fuel, so just use that, but make sure you buy from a reputable supplier.

Expert answer

Hi John,

No, it’s not just another cost to the consumer. Stop-start systems are designed to prevent the car from running the engine unnecessarily at standstill when doing so would be at its most wasteful of fuel. After all, if you’re not moving then what is the point in having the engine on? Stop-start systems are specially designed with either a beefed-up alternator or an integrated starter/generator so that it can handle multiple stops and restarts in rapid succession, and it’s estimated that on an average car, stop-start can save as much as ten per cent of overall fuel consumption – not to be sniffed at, never mind the benefits to city-centre air quality.

Admittedly, the car makers have brought in stop-start to bring their cars' official CO₂ and fuel consumption figures down, and the benefits are only really felt if you are stopping and starting regularly. If you spend all your driving time on the motorway then you won't use the system at all.