Buying new car on Continent

masit

Hi there, First time posted

My sister lives in Luxembourg. I was over at rally Germany at the weekend. Friday was a short day at the rally and we were back in Lux early. We went into an Audi garage for a quick look and I was shocked at the price of the cars. An Audi A4 2.0TDI was €23826 with no vat, €27400 with vat. VRT on the car would be €5093. Looked the same car up on Audi.ie and it was €35036

If I bought this car new in Lux (the garage can order right hand drive) and done the 6 months or 6000km thing, would I have to paid vat in Ireland seen as I did not paid vat in Lux. I saw 2 right hand drive German reg cars in my small town today, so people are doing it.

So just wordering has any body on boards bought a new car outside of Ireland or England and imported it. My sis tells me that Denmark is cheaper again. People from Lux buy cars up there and import them to Lux.

Any info would be great

Thanks Masit;)

mickdw

You have to pay the VAT on one side or the other. You can export vat free if new or regarded as new but then you have to pay vat here.
If you pay the VAT in lux and bring it here over 6 months old, you dont have to pay vat here, only VRT.

Buying new, I figure to imort would cost:

23826
irish VAT@21% of purchase cost = 5003
VRT @ 5009 (your figure)

Total 33838
Travel charges & possible additional VRT charges for extras etc and I dont see a saving.
Also, will the Lux dealers supply a rhd at the same cost as advertised for the home market?

CiniO

You have to pay VAT on it somewhere anyway.
Luxemburg or Ireland.

Anan1

€27400 + €5093 is €32493, ie only €2500 below the ROI list price. I take it the price was for a RHD car? How do the specifications compare?

bijapos

I've done this 3 times in total for relatives, the last time was about 7 years ago, I was going to do it again in 2007 but it would not have been worth it with a Golf Plus.

You need to find the base price of the car, most manufacturers now have more or less the same base price in all countries as opposed to a decade ago when it could vary enormously. The base price is the price of the car minus local taxes such as VAT and VRT. As Denmark has the highest VAT on cars in the EU it usually has the lowest base price so maybe its worth a look there.

You may be asked to pay the VAT in Luxembourg, then when you prove that you have paid the VAT in Ireland they will refund you. This is usually very straight forward and the dealer if experienced in thsi should be able to help you out.

Either way the VAT is due here as is VRT. To import the car should be straight forward, they will need the type number to show that it conforms to Irish and EU standards but with an EU purchased car this is no problem.

Ordering a RHD car is no problem in any dealership. Specs vary from country to country.

masit

CiniO wrote: »

You have to pay VAT on it somewhere anyway.
Luxemburg or Ireland.

Was thinking I'd have to paid VAT somewhere along the line.

The price seemed to good to be true. When all is added up there's not much in the price.

Oh well, thats that idea out the window.

CiniO

masit wrote: »

Was thinking I'd have to paid VAT somewhere along the line.

The price seemed to good to be true. When all is added up there's not much in the price.

Oh well, thats that idea out the window.

Anyway - if you can save 2.5 grand on whole business maybe it's worth it.

Anan1

CiniO wrote: »

Anyway - if you can save 2.5 grand on whole business maybe it's worth it.

Remember the €2500 difference is against ROI list price - unless the Lux car is a lot better specified, i'd imagine it would end up being more expensive. And that's assuming that the Lux price includes the extra cost of RHD.

masit

bijapos wrote: »

I've done this 3 times in total for relatives, the last time was about 7 years ago, I was going to do it again in 2007 but it would not have been worth it with a Golf Plus.

You need to find the base price of the car, most manufacturers now have more or less the same base price in all countries as opposed to a decade ago when it could vary enormously. The base price is the price of the car minus local taxes such as VAT and VRT. As Denmark has the highest VAT on cars in the EU it usually has the lowest base price so maybe its worth a look there.

You may be asked to pay the VAT in Luxembourg, then when you prove that you have paid the VAT in Ireland they will refund you. This is usually very straight forward and the dealer if experienced in thsi should be able to help you out.

Either way the VAT is due here as is VRT. To import the car should be straight forward, they will need the type number to show that it conforms to Irish and EU standards but with an EU purchased car this is no problem.

Ordering a RHD car is no problem in any dealership. Specs vary from country to country.

Thanks bijapos

When you imported the cars were they brand new or were they over 6 months old or over 6000km's?? So would I have to pay VAT in Luxembourg and then in Ireland and then the garage in Lux would refund the VAT I paid there?? My sister has lots of friends from Denmark so will have to get her to ask them more about it.

I know i might save a few grand but its a few grand in my pocket!!

CiniO

masit wrote: »

Thanks bijapos

When you imported the cars were they brand new or were they over 6 months old or over 6000km's?? So would I have to pay VAT in Luxembourg and then in Ireland and then the garage in Lux would refund the VAT I paid there?? My sister has lots of friends from Denmark so will have to get her to ask them more about it.

I know i might save a few grand but its a few grand in my pocket!!

Most likely you will be able to buy it without paying VAT in Luxemburg, if you will not register it there.

What you can do is, buy it there without VAT, get temporary registration and insurance (cost about 100 - 150) for a week in Germany and drive it back to Ireland.
Then pay VRT and VAT here in Ireland, and be happy of saving 2 grand.

Anan1

CiniO wrote: »

Most likely you will be able to buy it without paying VAT in Luxemburg, if you will not register it there.

What you can do is, buy it there without VAT, get temporary registration and insurance (cost about 100 - 150) for a week in Germany and drive it back to Ireland.
Then pay VRT and VAT here in Ireland, and be happy of saving 2 grand.

That gives a saving of €1200 (less transit costs) off ROI list - i'd imagine that's a good bit less than the cash discount available here. On which subject, I wonder what discount (if any) could be got off the Lux price?

-Corkie-

Anan1 wrote: »

That gives a saving of €1200 (less transit costs) off ROI list - i'd imagine that's a good bit less than the cash discount available here. On which subject, I wonder what discount (if any) could be got off the Lux price?

I cant see Audi Ireland or his local dealer honouring every Warranty claim. Anyway if it was cheaper wouldnt we all be buying new cars over.:)

CiniO

Anan1 wrote: »

That gives a saving of €1200 (less transit costs) off ROI list - i'd imagine that's a good bit less than the cash discount available here. On which subject, I wonder what discount (if any) could be got off the Lux price?

My mistake.
I forgot VAT in Ireland was way bigger than in Luxemburg.

Then it would be better to register it in Luxemburg, pay VAT there and wait 6 months before reregistering into Irish plates.

Anan1

CiniO wrote: »

My mistake.
I forgot VAT in Ireland was way bigger than in Luxemburg.

Then it would be better to register it in Luxemburg, pay VAT there and wait 6 months before reregistering into Irish plates.

It'd be financially better than paying VAT here - AFAIK VAT over there is 15%. You'd have to factor in the risk of being stopped here on Lux plates and having the car impounded, though. Honestly, I don't think the figures are anywhere near stacking up on this one.

Anan1

-Corkie- wrote: »

I cant see Audi Ireland or his local dealer honouring every Warranty claim. Anyway if it was cheaper wouldnt we all be buying new cars over.:)

Sure they'd have to!:) A friend of mine brought a BMW in from Belgium and the dealers here had no problem with warranty work, although i'm sure there might be the odd awkward one out there. Personal imports can save money in principle, but it's a lot of work finding the cheapest EU dealer for a particular make/model of RHD car. Also, a lot of continental dealers can be quite difficult about taking RHD orders - and the ones who do will often only sell at full list.

masit

CiniO wrote: »

My mistake.
I forgot VAT in Ireland was way bigger than in Luxemburg.

Then it would be better to register it in Luxemburg, pay VAT there and wait 6 months before reregistering into Irish plates.

Thats what I was thinking. If the car is over 6 months old or over 6000km's you don't pay vat?? Maybe thats only if you have paid the VAT in the country your importing the car from.

CiniO

masit wrote: »

Thats what I was thinking. If the car is over 6 months old or over 6000km's you don't pay vat?? Maybe thats only if you have paid the VAT in the country your importing the car from.

Of course that in that case you have to paid vat there.

bijapos

masit wrote: »

Thanks bijapos

When you imported the cars were they brand new or were they over 6 months old or over 6000km's?? So would I have to pay VAT in Luxembourg and then in Ireland and then the garage in Lux would refund the VAT I paid there??

Yes, they were always brand new. Its not the garage that refunds the VAT, its the revenue in that country. Its a bit bureaucratic but pretty straightforward in my experience.

-Corkie- wrote: »

I cant see Audi Ireland or his local dealer honouring every Warranty claim. Anyway if it was cheaper wouldnt we all be buying new cars over.:)

They must honour the warranty, no exceptions.

CiniO wrote: »

My mistake.
I forgot VAT in Ireland was way bigger than in Luxemburg.

Then it would be better to register it in Luxemburg, pay VAT there and wait 6 months before reregistering into Irish plates.

You would have to leave the car there for 6 months and make sure it has 6000 kms on it. Very messy.

The best thing for you is to find the lowest cash price for the spec you wabt in Denmark, Luxembourg and Ireland. The ndo your VAT and VRT calculations. Might be worth it, might not but start getting in touch with dealers now. Btw is the A4 not due a facelift soon? its on the market since early 08. Keep this in mind too.