New car to buy under the disabled drivers scheme.

Barr

Hi All

I was talking to my Uncle over Xmas and he told me as a disabled driver, you can reclaim VRT and tax back on the price of a car. The maximum that can be reclaimed is about €7k.

His present car is a 2003 and by the time the adaptation is done it seems hardly worth while under the scheme as he gets so little back on a 03 car.

I was thinking if he buys a new car he might be better off.

So basically if he looks for a new car, which he can trade in every 2 years, where the depreciation is less than the VRT/ VAT rebate then he should be better off?

Would do ye think this is the best way to use the scheme or is it a false saving given how much a new car depreciate anyways.

If it’s a good idea to buy a new car would ye recommend that could be traded in every two years without dropping a huge amount of value.

Thanks in advance

colm_mcm

The new vrt since 2008 has changed the game somewhat, as has increased availability of automatic cars. I honestly think the situation where you could cover depreciation on a 2.0 diesel car like a passat or avensis is a thing of the past.

He can claim vrt on an import which should be considered.

Vrt on small cars is tiny, as it is on most common diesels, so savings are small.

A niche car like an octavia vrs or something else with a slightly higher tax band but not too high might be worth considering. But hell still be spending a lot.

vectra

colm_mcm wrote: »

A niche car like an octavia vrs or something else with a slightly higher tax band but not too high might be worth considering. But hell still be spending a lot.

There you go.

He can claim back up to €9525

I researched this 2 years ago and found the best value for resale was a Tdi vRS Octavia.

Today I was told a new Chevy Cruze with discount would come in at a net price of 13.5k
Good value as well for a car with the same engine as an Opel 2.0 ~ 163bhp.

I actually priced a Cruze "Irmscher Edition" This would come in costing 3k more.

Barr

colm_mcm wrote: »

The new vrt since 2008 has changed the game somewhat, as has increased availability of automatic cars. I honestly think the situation where you could cover depreciation on a 2.0 diesel car like a passat or avensis is a thing of the past.

He can claim vrt on an import which should be considered.

Vrt on small cars is tiny, as it is on most common diesels, so savings are small.

A niche car like an octavia vrs or something else with a slightly higher tax band but not too high might be worth considering. But hell still be spending a lot.

Am I right in reading this? Did the VRT rates on new cars reduce in 2008. I thought it was just the road tax ?

If this is the case would he be better off getting an 07 car ?


I was actually thinking a diesel Avensis mite be the way given their good resale value. I'm surprised he couldn't cover 2 years depreciation :eek:



@ Vectra - was the Octavia you were looking at manual or auto?

vectra

Barr wrote: »

@ Vectra - was the Octavia you were looking at manual or auto?

vRS I looked at ( and bought ) was/is Manual, DSG was a lot more ( circa 3k ) which I could not justify.

R.O.R

vectra wrote: »

colm_mcm wrote: »

A niche car like an octavia vrs or something else with a slightly higher tax band but not too high might be worth considering. But hell still be spending a lot.

There you go.

He can claim back up to €9525

I researched this 2 years ago and found the best value for resale was a Tdi vRS Octavia.

Today I was told a new Chevy Cruze with discount would come in at a net price of 13.5k
Good value as well for a car with the same engine as an Opel 2.0 ~ 163bhp.

I actually priced a Cruze "Irmscher Edition" This would come in costing 3k more.

Don't, just don't.

You'd be on for a big loss with the Chevy come sale time.

cozzie55

I've been through the mill with this disabled drivers scheme three or four times at this stage for my mother. I'm in the middle of researching at the moment for another new motor under the scheme.

We have always gone for a new car under the scheme as it is impossible to claim the entire amount available with a second hand and usually would end up costing the same as buying new. So if you can afford it go for a new one. The depreciation on a car over a two year period is generally no more than the 10k you can claim so you make a very small loss if any when it comes to upgrade. It actually makes more sense to trade in the car every two years instead of keeping it for a third year.

A few things to note about the scheme, you can only claim a maximum of €9525 on a 2l car or under.

This amount comes from adding both VRT about 20% on the car plus VAT at 23%. Depending on the type of car you buy you may never actually reach the €9525 figure. For example I roughly worked out the price of brand new 2.0l Diesel Toyota avensis costing 26k in total. The maximum that could be claimed for this motor is €7700 as VRT is €3985 and VAT is €3726. So a toyota avensis costs approx €18300 to buy new. In contrast a Peugeot 508 costs 28k new but you can claim €9133 on this car so it costs about 18800 to buy.

To claim the maximum amount you really need a car costing about 30k and in tax band C. Again this is provided you can afford it.

Another point is that the irish wheel chair association offer an extra discount to member on certain makes of cars. For example on a ford gets a €720 discount. More info at http://www.iwa.ie/services/advice.aspx

You also need to think very carefully about the car you think of buying. My mum is partially disabled and can still walk but needs a higher up car such as a jeep to allow her to get into the car easily, someone in a wheelchair would need a car closer to the ground as they wouldn't be able to reach the height of a jeep. Also wider doors in the car and the likes are a major help to the owner. There is more info in the irish wheel chair assoc website on the types of cars to buy and what to think of when buying it.

If you want any more info let me know. If you let me know what car you are thinking of I can give you an approximate price of it as I have looked into a lot of cars and this stage for ourselves

cozzie55

also the VAT on the adaption of the car is part of the €9525 you can claim as far as i remember.
The first time you buy a car and get it adapted with say hand controls the cost is high. The second time you buy a car there is a tiny cost as generally the hand controls are just changed from your original car to your new one so you don't have to pay to buy new controls. Think originally our adaption cost somewhere in the region of €1000 so thats an extra €230 to minus from your claim on the car.

Barr

Thanks Cozzie , I’m at the start of my research for my Uncle and any helpful advise is welcome

When your Mother was trading in her car did the VRT/VAT rebate cover the depreciation? If so what kind of car did she opt for if you don’t mind me asking ?

Knine

I'm interested in the anwers here too, I have a car on this scheme, a focus which is coming up to 2 years. I mentioned it in the garage at a recent service and they said it would cost feck all to change.

I think there is a transfer fee for the equipment/adaption to be changed over to the new car. Anyone know about this? I did find Ford very good to deal with.

colm_mcm

Knine wrote: »

I'm interested in the anwers here too, I have a car on this scheme, a focus which is coming up to 2 years. I mentioned it in the garage at a recent service and they said it would cost feck all to change.

I think there is a transfer fee for the equipment/adaption to be changed over to the new car. Anyone know about this? I did find Ford very good to deal with.

yep, usually the likes of motability will have to adapt the hand controls if you're getting a different model. They usually charge enough for this too.

Knine

colm_mcm wrote: »

yep, usually the likes of motability will have to adapt the hand controls if you're getting a different model. They usually charge enough for this too.

It is for a disabled child. I use the swivel car seat. Its a lifesaver to be honest because of the integral harness, it stops her trying to escape in the car. It will have to be moved into the new car.

colm_mcm

In that case, the cost of transferring the seat needs to be at least 10% of the pre tax price of the car.

This can be worked though if you do it right.

Knine

Are you sure this is correct because I have already paid the price of the seat over 2 grand and they told me in mobility Ireland all I would have to pay is a transfer fee and also for a service if the car seat needed it.

colm_mcm

Quite sure.

Disabled Passengers

You can claim tax relief on
•A new vehicle
•A used vehicle that has been purchased from an authorised dealer and that has not been previously registered in the state

You can also buy a previously registered used vehicle, in which case the amount of the repayment will be the residual tax contained in the value of the vehicle.

If you bought the vehicle before you qualified as a disabled person, a repayment of VAT and VRT, appropriate to the market value of the vehicle at the time of entry to the scheme, will be made.

The pre-tax cost of adapting the vehicle must amount to at least 10% of its pre-tax cost.

A vehicle that has been acquired under a hire-purchase agreement qualifies for tax relief.

Knine

According to the garage and also Mobility Ireland though the existing adaption can also be used in that 10% amount although if you went for another more expensive car then more adaptions may be needed.

As my new vehicle will also be adapted using the equipment I already have, then that will amount to the 10% pretax cost! It does not say you need to buy a new adaption!

I still need the same seat, no point in going out and buying a new one!

I must give them a ring tomorrow and clarify!

cozzie55

Barr wrote: »

Thanks Cozzie , I’m at the start of my research for my Uncle and any helpful advise is welcome

When your Mother was trading in her car did the VRT/VAT rebate cover the depreciation? If so what kind of car did she opt for if you don’t mind me asking ?

Up to now we've had 3 toyota avensis's with the 2l engine. But this is more down to my mother being friendly with a toyota dealership.
Our next car which we will be ordering in the next few weeks won't be toyota though. As my mums conditions is getting worse in recent years, she wants to buy a jeep for easy access. We can't opt for the toyota Rav4 as it has a 2.2l diesel engine so we are looking at the Ford Kuga, Peugeot 3008, BMW X1 and the VW Tiguan. Having test drove most of them,
My Mum finds the BMW X1 the most suitable although it is the most expensive, its not too high like the Tiguan, she found the Kuga hard to get in and out of, and she didn't like the 3008 at all. All of these car are in the €30k region.
If your uncles budget can't stretch that far then take a look at a Golf plus, kia venga or the nissan note and quasqui, all high up cars which cost in the region of 20k

cozzie55

Knine wrote: »

According to the garage and also Mobility Ireland though the existing adaption can also be used in that 10% amount although if you went for another more expensive car then more adaptions may be needed.

As my new vehicle will also be adapted using the equipment I already have, then that will amount to the 10% pretax cost! It does not say you need to buy a new adaption!

I still need the same seat, no point in going out and buying a new one!

I must give them a ring tomorrow and clarify!

As far as i'm aware its the pre-tax value they look for. Ie if you are adapting a car the value of the adaption has to be 10% of the car value. So if you are adapting with hand controls for example the cost of buying new hand controls plus installing is taken into account as your adaptation value even if you supply your own controls.
I'm not a 100% certain of this though, i'm only assuming it as we have always transfered our adaption and never got any further adaptions carried out on the car, surely it can't cost roughly 2.5k to transfer an adaption from one car to another.
The only other way i can see of doing it would be a loop hole where the adaption company buys the adaption from your old car and then sells it back to you for the same amount when you adapt the new car, thereby increasing the cost of adaption.

RocknRollDoggy

my wife had her hip replaced recently and finds it difficult to drive, is it very difficult to get this grant. is it better to get our car modified 05, or get a new one

Gael23

cozzie55 wrote: »

Up to now we've had 3 toyota avensis's with the 2l engine. But this is more down to my mother being friendly with a toyota dealership.
Our next car which we will be ordering in the next few weeks won't be toyota though. As my mums conditions is getting worse in recent years, she wants to buy a jeep for easy access. We can't opt for the toyota Rav4 as it has a 2.2l diesel engine so we are looking at the Ford Kuga, Peugeot 3008, BMW X1 and the VW Tiguan. Having test drove most of them,
My Mum finds the BMW X1 the most suitable although it is the most expensive, its not too high like the Tiguan, she found the Kuga hard to get in and out of, and she didn't like the 3008 at all. All of these car are in the €30k region.

Did she take a look at the Nissan Qashqai? Its that bit higher up than an ordinary hatchback but comes alot cheaper than the ones you've listed.