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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,


Which small car will have the best resale value?

Hi,

We're looking at changing my wife's car for something smaller as our daughter is learning to drive. The car is a 2002 Volvo S60 (2.0T petrol, tax €600) and from talking to dealers will be hard to sell privately or get over €2k trade-in.

We were thinking of going for a Skoda Combi (1.2T petrol, €105 tax), but are concerned with resale value. Other smaller cars (e.g. Ford Fiesta, VW Polo) are more expensive, offer less kit and space, but might have better resale values in five years. Any thoughts of suggestions on what to do, or go for?

Pat Rowan (Dublin)

Aug 2010 Filed under: choosing new car

Expert answer

Hello Pat,

As a trade-in it would probably be accurate enough to assume that your Volvo would be worth about €2,000, although you might get a little more if you sold it privately.

When you say the Skoda Combi I am assuming that you mean the Fabia Combi, which is Skoda's small estate model. It is indeed a nice little car, but perhaps something of an odd-ball and it might not be the best car to choose if you are focusing on resale value. 

There is really only one car that stands head and shoulders above the rest when it comes to residual value in the small car segment and that is the Volkswagen Polo. If you look back at the classifieds you will notice that these command a used price significantly higher than any other car in the class, so if you are buying with a view to the car being worth something in five years, this is where you should be putting your money.

It isn't necessarily the best car in the segment though - for us the Fiesta would claim that particular title. There is no doubt that if your budget is restricted then you won't get a Polo with tons of equipment thrown in and it might be shorter on power than some of its rivals, but I'd go for a 70hp 1.2 Comfortline Polo in a safe colour (silver, black or red) and you will get decent money for this car in five years time.

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.


Is there any reason to avoid UK imports?

Is there any reason to avoid UK imports? We are looking for a MPV and just wondering if UK imports are as safe an option as Irish cars or is it a more complicated purchase with potential risks? Thanks

Patricia McGuire (Dublin)

Jun 2010 Filed under: importing

Expert answer

Hi Patricia,

Buying a car from the UK can be cost effective. I have done it twice myself and certainly saved money. But like any car purchase you really need to make sure that you do your homework properly and exercise lots of caution. The more you can do in terms of a background check on your car the better.

We would advise you to avoid buying privately in the UK as this could prove riskier. Buy from a main dealer, where there is a proper warrranty and usually a full service history. You are still likely to save money yet there will be greater piece of mind.

Services like MotorCheck.ie offer a very thorough check on UK cars too, so they are worth spending a few Euro on for some added piece of mind. The actual purchase itself isn't really very complicated. You just need to factor in some additional costs like a flight over and a ferry back and then you need to have a good idea of how much you will be paying for the car in Vehicle Registraion Tax (VRT) when you import the car. You can pretty much do this down to the last cent these days on the Revenue on-line calculator.

Research is key; do this and you can perhaps not totally avoid risk, but certainly reduce it.


How much for my Toyota Avensis?

Hi, I have a 2007 Toyota Avensis Strata in mint condition. There is only 19,000 miles on the clock and a Toyota service record. How much should I expect to get for this car in a private sale or as a trade-in? Great site by the way, best of luck with it.

Robbie Mc Grath (Dublin)

May 2010 Filed under: used car values

Expert answer

Hi Rob,

You could price your Avensis at about €11,500 - €12,000 as a private sale, but there are quite a lot about, not with mileage that low admittedly, but you should expect to drop a little lower to sell. You should get something similar against a new or used car as a trade-in, bearing in mind you would get a decent discount off something anyway. Remember, look at the cost to change rather than fixating on how much your car is worth.

 


What seven-seater for our new arrival?

We need to get a seven-seater when our fourth child arrives soon, so we're looking at a SEAT Alhambra, VW Sharan or Ford Galaxy.

We have a 2003 Focus Ghia saloon plus a budget of around €10,000 to add to it. Do you have any other similarly-sized car suggestions that we've missed and is it a concern if a second-hand car that is five or six years old has three or more owners if the mileage is less than 60,000?

 

 

 

 

Tonya Kirwan (Wicklow)

May 2010 Filed under: choosing used car

Expert answer

Well firstly, congratulations on your impending arrival. I am going to be conservative and say that you might get around €4,000 for your Focus, but let's say that you have a budget of around €14,000.

You could indeed have a Ford Galaxy for this price, with a 2005 model with 79,000 miles (1.9 110hp diesel) costing you €12,950. 

It seems to be hard enough to find examples of the Alhambra around that are on sale from official SIMI dealers, which is something we would recommend, but you would pay very similar money for an equivalent Alhambra.

The Sharan is pretty much identical to the Alhambra, but they tend to end up a little bit more expensive because of the VW badge on the front, so I think these should probably be avoided, as there is no major benefit for quite a lot of extra money.

In terms of alternatives, there are a few you could look at. Have you considered the Opel Zafira? The rear seats might not be as big as you would like, but they are fine for small ones and it is a nicer car to drive than the ones you have mentioned.

If you wanted something a lot newer, you could have a petrol Renault Grand Scenic. We found a 2008 example with low mileage for under €14,000. I know you might prefer a diesel, but if your mileage is low then this could be a good buy.

In terms of your query on mileage on older cars, it isn't unusual for cars like this to have low mileage, because they tend to do things like short school runs and are often second cars in families. However, you can always be as sure as possible by buying from an SIMI dealer. 

 


Changing my 406 Coupé for something new or used.

Hi guys,

Firstly, congrats on the website, fair play and good luck with it. I'm just looking for some advice! I'm 29, living in Dublin and do on average city say 14k per year in my car, a 2001 Peugeot 406 Coupé 2.0, which I love. I'm looking to trade up and am not sure what to go for? Would like something sporty-ish, comfortable, economical all round (fuel, tax, servicing) and not too common on the road. I have a budget of €15k with no real preference on year but the younger the better! 

I've never driven a diesel before but with the way that diesel engines have improved I am not adverse to change. So I'm prepared to go for either. 

Brian Gallagher (Dublin)

May 2010 Filed under: choosing used car

Expert answer

Hello Brian,

This is an interesting one. I am guessing, as you own and love the 406 Coupé that you don't really want something too mainstream. It might seem obvious to put you into something like a BMW 3 Series Coupé, but I don't think that is what you are after.

As you probably know, you might not get offered very much for your 406 Coupé, which is a shame. Try to sell it privately because these cars do have a loyal following and if you got €2,000 that would no doubt be welcome. There is one for sale with a lot less miles than yours in Dublin for €2,650, so work backwards from there. 

Trading it is probably the easiest. Let's say that you have a budget of €16,000 and see what is around that might suit. 

One, perhaps rather obvious, choice would be to go for a Peugeot 407 Coupé. The diesel model sold really well and remains expensive, but I found a 2007 2.2-litre petrol version with just 21,000 miles on the clock and they are asking just €14,950. You can find it here:

http://tinyurl.com/33k7nl3

That might work given the really small mileage that you do and since you loved your 406 Coupé then this could be a great buy. 

If you want something very pretty and unique, how about an Alfa Romeo Brera? Here is a 2.2-litre petrol model for €17,950, but you could well haggle this price down further. There aren't too many about and while we cannot say that it won't give you the odd headache, it is a real head turner.

http://tinyurl.com/3ydqk89

Even if you're not a BMW guy, it's worth considering a 2006 320d Coupé, which will be reasonably economical for under €16,000. This one is in Monaghan and the mileage is pretty good at 69,000 miles.

http://tinyurl.com/3yr7wgq

I don't think you need a diesel given your mileage. I'd pick a Volkswagen Golf GTI. I know it isn't a coupé, but it is a super car to drive. This one is a 2006 model, but you might sneak into a 2007 version for your budget too. The example we found has the brilliant DSG gearbox, has done just 26,000 miles and is loaded with kit. It is such a rewarding car to drive and, since you live in the city, the gearbox should suit you perfectly giving you the best of both worlds.

http://tinyurl.com/32aftto

Please feel free to come back to us if we are way off the mark!



Is this a good price for a 2008 Audi A3 TDI?

I am looking at a 2008 Audi A3 1.9 TDI. Is €18,950 good value for an example with 18,900 miles on the clock?

Ken Moran (Carrick On Shannon)

May 2010 Filed under: choosing used car

Expert answer

Hello Ken, 

For that sort of mileage it is a small bit less than you might normally be asked to pay for a diesel A3, but this would depend on whether it was a private sale or from a main dealer.

I'd say you would expect to pay €19,500 for one from a main dealer, with a private sale or independent dealer costing about €1,000 less. Remember, if you aren't trading in, you should expect you to get a decent discount off this asking price. 

Hope this helps!


Can I trade in two cars on the scrappage scheme?

Can I trade my 2006 car with my 2002 model for scrappage in exchange for a new car? I have a 2006 Avensis and a 2002 Toyota Corolla hatchback to trade.

I want to get a good diesel car. I've clocked up around 75,000 miles in two and half years.

What garages will look at this type of trade?

Allice Cox (Bagenalstown)

May 2010 Filed under: scrappage

Expert answer

Hi Alice

It isn't totally unusual for someone to trade in two cars against one. Car dealers are a little short on good used cars and the two you have to trade are likely to be quite welcome. 

You could try and sell one privately and use the cash as a deposit against your newer car, but selling privately can be a headache and you might be waiting a while for the car to sell. I would suggest that you try your local Toyota dealer initially, as they're likely to offer better deals on your Toyotas. 

You mention scrappage in your question. Unfortunately neither of your cars qualify for the scrappage scheme as they are not yet ten years old. So it would be a case of trading in both cars against a new car as normal. 

Without knowing details of your two trade-in cars in terms of mileage and condition we wouldn't be keen to give you an estimate of the price of these, but it would seem logical that you would stick with Toyota and get another Avensis (a diesel) as you are likely to be most welcome by the Toyota dealer. 

Feel free to come back to us with more details on your cars and we will see how we can help further.

Paddy


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