VRT - One rule for dealers another for punters?

Sizzler

I'm sure people have noticed the amount of dealers that have cottoned onto the fact theres a few quid to be made by importing cars in from the UK and they all seem to be at it.

What gets me is though we are seeing plenty of media coverage & propaganda from the authorities about VRT compliance and numerous posts on here about being stopped in UK / NI reg'd cars but yet it seems to be fine for dealers to bring in UK reg'd cars by the truckload, park them up and don't bother their hole VRT'ing them till they have been sold.

Isnt the rule "car has to be presented for VRT within 24 hours of landing" Am I missing something here? Surely the customs could clean up on this if they were really that bothered about it instead of stopping the odd Joe on the open road?

Perfect example -

http://www.carzone.ie/used-cars/Volkswagen/Passat/2.0-TDI/818420/

2005 Passat for sale on UK plates in a dealer. Won't be reregistered presumably till sold, meanwhile the car is devaluing by the day and in 2 weeks time the VRT will drop even more I would imagine on the car in question?

Opinions?

Del2005

Dealers have accounts setup with the revenue, and they have to lodge a set amount into it to cover the cars they have. If you do a search here for TAN it's been explained before.

junkyard

Sizzler wrote: »

I'm sure people have noticed the amount of dealers that have cottoned onto the fact theres a few quid to be made by importing cars in from the UK and they all seem to be at it.

What gets me is though we are seeing plenty of media coverage & propaganda from the authorities about VRT compliance and numerous posts on here about being stopped in UK / NI reg'd cars but yet it seems to be fine for dealers to bring in UK reg'd cars by the truckload, park them up and don't bother their hole VRT'ing them till they have been sold.

Isnt the rule "car has to be presented for VRT within 24 hours of landing" Am I missing something here? Surely the customs could clean up on this if they were really that bothered about it instead of stopping the odd Joe on the open road?

Perfect example -

http://www.carzone.ie/used-cars/Volkswagen/Passat/2.0-TDI/818420/

2005 Passat for sale on UK plates in a dealer. Won't be reregistered presumably till sold, meanwhile the car is devaluing by the day and in 2 weeks time the VRT will drop even more I would imagine on the car in question?

Opinions?

Ffs have you any idea how hard it is for dealers to make money out of cars? As you rightly pointed out the cars are depreciating by the hour yet the odd Joe as you call him want's a years warranty on his car when he buys it second-hand, will ring the Joe Duffy show and complain if he gets as much as a puncture in it. One of the only breaks a dealer gets from the revenue is the TAN number and even at that they're on your case every month to see what you have in stock and how much you owe them.

caesar

Revenue wrote:

Authorisation: General

In the case of motor dealers or distributors who wish to deal in unregistered vehicles in Ireland the requirement to register a vehicle and pay VRT by the end of the next working day following the arrival of the vehicle in the country (or release from Customs Control, as appropriate) may be postponed until the vehicle has been sold. The postponement is effective only where the distributor or dealer is legally authorised by the Revenue Commissioners to deal in unregistered vehicles. In this context, "deal" means offer for hire, lease or sale in Ireland one or more unregistered vehicles, in effect, to hold unregistered vehicles without payment of VRT until they are sold. An unregistered vehicle may not be released to an unauthorised person until it has been registered by the dealer and VRT paid.

See here: http://www.revenue.ie/index.htm?/services/vrt/vrtcom.htm

As for my opinion well if people are willing to pay dealers for providing this "service" thats their own choice, doesnt really bother me.

As for VRT......Sorry CRT(Carbon Registration Tax);) thats a whole different story.


Junkyard makes a good point too, dealers margins aren't great and when you think about they are the first ones who will be hit when people feel the pinch of the credit crunch.

Seth Brundle

Are members of the public allowed to test drive UK registered cars here?

Esel

Technically, no, but no 'risk' irl - the car being seized wouldn't bother you much! I can't see anyone in this situation being prosecuted simply for driving it. The law is there to force registration at the end of the day.

junkyard

kbannon wrote: »

Are members of the public allowed to test drive UK registered cars here?

Your supposed to put trade plates up on the car when your test driving it.

Sizzler

junkyard wrote: »

Ffs have you any idea how hard it is for dealers to make money out of cars? As you rightly pointed out the cars are depreciating by the hour yet the odd Joe as you call him want's a years warranty on his car when he buys it second-hand, will ring the Joe Duffy show and complain if he gets as much as a puncture in it. One of the only breaks a dealer gets from the revenue is the TAN number and even at that they're on your case every month to see what you have in stock and how much you owe them.

FFS, I know how difficult it is to sell a car right now so I can empathize with you there.

Fair enough, never heard of the TAN system but maybe some sellers arent being as compliant as your goodself?

pburns

junkyard wrote: »

Ffs have you any idea how hard it is for dealers to make money out of cars? As you rightly pointed out the cars are depreciating by the hour yet the odd Joe as you call him want's a years warranty on his car when he buys it second-hand, will ring the Joe Duffy show and complain if he gets as much as a puncture in it. One of the only breaks a dealer gets from the revenue is the TAN number and even at that they're on your case every month to see what you have in stock and how much you owe them.

Junkyard, you have a neck complaining about the 'hard lot' car traders have whilst in another thread discussing the Porsche Cayenne you have on order!! (and how you're side-stepping the tax-man by converting it to a van!);)

At least the more...eh...irregular dealers who have a stock of s/h English reg cars can avail of this loophole. The franchised guys seem to have a glut of Irish s/hs and are caught in a Catch22 when they sell a new car because they'll usually have to take in another used motor to add to the pile in the corner...

Not that I'm too sorry for the plate-glass showroon brigade with their army of ill-informed, business-gradute salesmen...

Sizzler

pburns wrote: »

Junkyard, you have a neck complaining about the 'hard lot' car traders have whilst in another thread discussing the Porsche Cayenne you have on order!! (and how you're side-stepping the tax-man by converting it to a van!);)

:eek:

rebel.ranter

In the case of new cars the dealer is responsible for collecting the VAT & VRT. Why would it be any different for importing 2nd hand cars? (Yes I know VAT is not always due on 2nd hand cars)

I don't see any issue with dealers having UK plates on their forecourts. They have no plates on new cars, where's the difference?

VRT is paid when the car is registered, it's a registration tax.

Take the xample of a new car, if they sell it today the VRT may well be higher or lower than it will be in July under the new rules. Why should the dealer pay the VRT before it's due & be caught out. For 2nd hand cars they story is the same, no point in paying VRT now if the registration date is goign to be in a few weeks/months time.
I'm not in the trade BTW.

Mc-BigE

junkyard wrote: »

Ffs have you any idea how hard it is for dealers to make money out of cars? As you rightly pointed out the cars are depreciating by the hour yet the odd Joe as you call him want's a years warranty on his car when he buys it second-hand, will ring the Joe Duffy show and complain if he gets as much as a puncture in it. One of the only breaks a dealer gets from the revenue is the TAN number and even at that they're on your case every month to see what you have in stock and how much you owe them.

There is nothing wrong with UK cars in irish dealers, as along as the dealer passes on some of the savings to the buyer, compared to an Irish Reg’d equivalent car.
There’s a simple solution for the “Poor auld car dealer” Drop your prices of your second-hand stock, give buyers better value for money by offering better trade-ins, 12months warranty and people will start buying cars from you again, its called competition, your car has to be more attractive than the UK cars that are on offer over there.

People haven’t forgotten what it was like to buy a car from an irish car dealer during the Celtic Tiger years, the crap trade-ins, the long waiting lists for new cars etc etc.
The “sure if you don’t buy it, the next guy in here will” attitude.

That’s my 2c.