Is my Mondeo's tax bill correct?
I have a 2009 Ford Mondeo 2.0 140hp, but I think my car tax might be wrong. I have been paying €750 a year on this car. I'm only looking into it now after someone telling me it could be the wrong price; how can I look into this or who could I talk to about this?
Thanks
Thomas Madden (Kilcolgan )Jun 2018 Filed under: taxation
Expert answer
Hi Thomas,
It’s possible. If your car is the 2.0-litre 140hp TDCi saloon with a manual gearbox, then its CO2 emissions should be rated at 156g/km, which would give you a motor tax bill of €570 a year. However, if it’s the automatic version, then the CO2 rating jumps to 189g/km, and that’s a €750 bill.
Why do Irish car buyers not get discounts?
Hi,
I wonder if you could explain something I don't really understand about the Irish car buying market, even though I have a big interest in cars and the industry. Why is it that Irish car buyers hardly ever seem to get the sort of discounts that buyers in Britain do? I'm not just referring to the fact that overall new and used prices are cheaper there.
I wanted to buy a new or nearly new Peugeot 508 here recently and thought I would get a reasonable discount, which I pushed for, as that model does not sell as well as many of it's rivals and I thought the Peugeot dealer would be delighted to sell a saloon seeing as the market for them is declining so much and so many people now want SUVs instead. Alas, I could not get any sort of decent discount for a new or nearly new 508. It is well known that in Britain the buyer often gets a sizeable discount for car types or models that lag behind many rivals in sales, or for certain brands such as Vauxhall/Opel and Citroen. From what I observe and hear, you don't get decent discounts either for certain makes and models here in Ireland.
Higher VRT and other taxes here, don't explain these differences alone. I thought with Brexit and the vast increase in used and nearly new imports that Irish dealers would be more price competitive, but I'm surprised also that the prices of good fresh second hand cars here haven't come down more in this backdrop. For some good reasons, I'd prefer to buy here than from abroad, but it just seems that Irish car buyers can't catch the breaks that UK buyers get at all! Do you agree with me or can you kindly explain these differences in both markets?
Thanks, JC
JC Holohan (Waterford)Jun 2018 Filed under: used car values
Expert answer
Hi JC,
The big issue, really, is the size of the market. In the UK, vast dealer groups, with multiple outlets, are the norm and, obviously, these groups can be more cost-efficient and can potentially offer bigger discounts. Although there are dealer groups in Ireland, the norm is still very much the individual family-run business. That’s equally true on the import side of things — although there are now importers here that are tied directly to the car maker itself, many are still private, individual, locally-owned companies and those struggle to match the sort of discounting that is more common in the UK market. Plus, the fact that we buy in and around 100,000 to 130,000 cars a year here means that there’s less volume to spread discounts across. The UK market shifts two million cars a year — a considerable difference. VRT and VAT costs also play into it, as the wholesale price is often kept artificially lower to try and keep the added tax price down as much as possible.
Should an older camper mean vintage VRT?
I imported a 1972 Volkswagen T2 van from Europe. It is quite basic and not fully done up yet or restored. Revenue want to charge €800 VRT despite me paying only €800 for it when I bought it. I am being charged as a camper van, but I expected to be charged the flat vintage rate of €200 as it is over 40 years old. Should I not have been taxed the vintage rate? They say that is only for cars, but the website does not state that. It says all vintage vehicles and the VW T2 is a vehicle is it not?
Great if you could advise.
Ellen Armie (Dublin)Jun 2018 Filed under: VRT
Expert answer
Hi Ellen,
Yes, theoretically I’d say you’re absolutely right. A classic VW T2 should be considered a classic, and not as a camper or anything else. To be honest, Revenue can be pretty useless when it comes to assessing VRT on classics and vintage cars, because the market in Ireland is so small for cars like that. What you’ll probably have to do is (unfortunately) pay the VRT up front, and then challenge it.
Get on to your local classic car club, or better yet a VW owners club for some expert opinion (in writing, of course) and maybe get your solicitor to draw you up a letter outlining why it’s a classic and not a camper. You should get a rebate, but it may take some time and effort.
My car was never imported correctly...
Hi,
I bought a Japanese car, but the person who brought it to Ireland didn't register it when he imported it here. Now I discover that over 6k is owed in penalties... What can I do?
Darren Curneen (Dublin)May 2018 Filed under: importing
Expert answer
Hi Darren,
I think the first thing to do is to ‘lawyer-up’. You’re going to need some professional legal advice on this one. Basically, the law is pretty simple - once a car is in the country, you have a week to notify Revenue and make the booking at the NCT centre to have the car inspected, and 30 days to complete the process and get the new plates. Failure to do so means that Revenue can seize the car and they will only release it at their discretion, and on payment of a hefty fine. Plus there’s the issue of any unpaid motor tax.
As a purchaser, you should never buy a car that’s in Ireland, but still on its foreign plates. The law says it must be re-registered before being sold on. However, if you can show that you bought the car in good faith, and intended to follow the normal VRT procedure, then there might be a way through this for you. Clearly, the bulk of the onus is on the previous owner, but you definitely need to have a good solicitor on your side for this one.
Thinking of buying a car in the UK...
I am thinking of buying a UK car, but driving it in the UK for six months. Am I right to think VRT is only payable on entry to Ireland and what are the main documents you require for importation? Also I presume the VRT is calculated on the vehicle age and mileage entering Ireland?
William Neale (Malahide)Apr 2018 Filed under: importing
Expert answer
Hi William,
Not quite. Actually VRT is calculated on the OMSP, or Open Market Selling Price, which is that which the Revenue Commissioners calculate the car would be worth if it were an original Irish registered model. So, yes, age and mileage do come into it, but it’s not quite as simple as that.
As for the UK residency thing, again it’s not quite that simple — yes, you can avoid VRT if you bring a car into the country that you can show has been taxed and insured for at least six months, by you, at an address in the UK, BUT you will be asked to provide proof that you’re moving from the UK to Ireland, and proof that you were living and working in the UK for at least 185 days prior to the transfer of residence.
Diesel still best for high mileage?
So with so many car makers planning to phase out diesel engine options in 2019, what are the real options for high mileage drivers? Will there be big impacts on residual values for diesel cars purchased later this year? I drive about 40,000km a year and need to change later this year.
Thanks
Brian O Neill (Kilkenny)Mar 2018 Filed under: diesel
Expert answer
Hi Brian,
The diesel question is a particularly thorny one, mostly because we don’t have any firm guidance from the Government on what is going to happen with the taxation system. If anti-diesel taxes are brought in, then that will definitely have a serious effect on diesel used prices. For now though, all we can reliably say is that diesel is still popular outside the major urban centres and, for the most part, it’s still the best choice for the long-distance driver. I say most part, because hybrids are improving all the time and such cars as the Kia Niro and Toyota Prius are well able to manage better than 60mpg even on long motorway hauls, while a Lexus GS 300h, for example, is every bit as frugal in daily driving as a rival diesel product.
Should I go for a BMW 530d?
I am looking at 2017 BMW 5 Series. Is it worth spending the extra on a 530d over 520d? There is about €8-10k difference on used cars. I do about 25,000km a year of driving. I would love the extra power but do wonder if it is a waste to spend more.
Andy Kelly (Limerick)Mar 2018 Filed under: choosing used car
Expert answer
Hi Andy,
It’s not a waste, as such, but you do need to balance out whether or not it’s worth the extra cash to you. Yes, the 530d has a lot more power and torque, and is smoother than the four-cylinder 520d from a refinement point of view. Balanced against that, the 520d will easily beat the 55mpg mark every day, while the 530d will struggle to do better than around 45mpg, and you’ll be paying a bit more motor tax every year too. So, while we love the 530d, and its six-cylinder smoothness, the head clearly says buy a 520d.
I think RWD cars should use winter tyres!
Why are winter tyres not mandatory on rear-wheel-drive cars? I’m on my second Mercedes and know to switch to winter tyres each year. I rarely see other rear-wheel-drive cars doing the same yet such vehicles are uncontrollable in icy conditions - much worse than front-wheel drive. This is a serious safety issue not just for owners but other road users. I can guarantee someone will get killed if action is not taken. I suggest campaigns but also really dealers have an onus to notify buyers. Perhaps you could highlight as well.
Thanks
Sean
Sean Burgess (Limerick)Mar 2018 Filed under: tyres
Expert answer
Hi Sean,
I agree to a certain extent with this, but not completely. Rear-wheel-drive cars with their engines up front (as with your Mercedes) really struggle with traction in icy conditions, but front-wheel-drive cars are no better when it comes to braking and turning in the same conditions so if such a law was to be brought it, it really should apply to all cars, as winter tyres provide much more grip whether you're accelerating, braking or turning.
However, despite the crazy week we've had here in Ireland with snow and ice, long term weather stats clearly show that we don't get enough cold weather in most parts of Ireland (i.e. the temperature below seven degrees C) to warrant forcing everyone to change to winter tyres. Above seven degrees C, winter tyres are not as good as all-weather/summer tyres and they wear much quicker.
The Irish motorist already feels hard done by in terms of taxation and running costs so I don't think any government would bring this in here, but to be honest, I don't think they should, either. It really should be up to the individual. And that's coming from someone that has expereinced how brilliant winter tyres can be. Other opinions area available...
How much to import and tax my Honda?
Hi,
I'd like to live in Ireland and have a Honda Insight Hybrid to import. What will be the cost of import and road tax? I have the car more one year.
Thank you, Jan
Jan Beerens (The Netherlands)Jan 2018 Filed under: importing
Expert answer
Hi Jan,
If you’ve owned the car for more than six months and have had it taxed and insured at your previous address during that time, then there’s no import duties (or Vehicle Registration Tax - VRT) to pay. Depending on where you’re moving from, there may be some VAT to pay, and you’ll have to pay for the inspection and valuation at the NCT centre, but other than that there should be no cost to bringing the car in.
The last generation of Honda Insight has a CO2 rating of 105g/km, so that means you’ll pay €190 a year in motor tax.
Read our guide to How Much VRT is Paid in Ireland for more information
You can find much more information on the importing process here: https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/vehicle-registration-tax/index.aspx
How much to tax a 2007 Volvo S60R?
Hello, can you please give me advice on how much is car tax on a 2007 Volvo S60R?
James Nolan (Dublin 24)Jan 2018 Filed under: taxation
Expert answer
Hi James,
The R version of the S60, the high-performance model, used a 2.5-litre turbo engine and, as it’s pre-2008, it’s on the old engine capacity tax system so that’s going to be €1,080 for a year's tax.
Read our Motor Tax Prices in Ireland Explained feature for more
