Revenue have incresed my cars OMSP for VRT by €1531 in 4 weeks !!

D.M.B

I purchased a 2007 BMW 318d slightly before christmas 2012 in the UK. The car had some light damage and a body shop in Northern Ireland repaired the car for me so I just got it back this week and booked it in for VRT inspection today.

Since I purchased the vehicle in December I have been checking the VRT price online regularly.

In December 2012 the OMSP was €11106 and the Payable VRT at 20% rate was €2221,

January 2013, 01/01/2013 and the OMSP had been reduced to €9411 ( Due to the vehicle now being a year older ) and the payable VRT at the New increased rate of 23% ( due to budget ) was €2164.

Febuary 2012 ,Today, 06/02/2013 and the OMSP has increased to €10942 ( increase of €1531 in 4 weeks !.. ) and the payable VRT at 23% is now €2516 ( increase of €352 ).

It appears to me that Revenue are clearly tamering with OMSP of vehicles as they see fit, They have also altered the rate of depreciation from January at 77% to currently Febuary at 73% which is not even possible for depreciation to reverse, there is clearly no foundation or research into what their OMSP is based on as I find it rediculas for them to even attempt to explain how a second hand used vehicle is worth €1531 more in the month of febuary than it was in the previous month of January. Common sence alone should tell them that a used car depreciates in value rather than increases.

I would like to know what options are open to me, Can I complain prior to the VRT inspection regarding the tampering of the OMSP of this model vehicle as I have print outs of all my previous quotations or must I pay the current price of €2516 and then appeal, jump through all their hoops and excuses for a few months and eventually get refused any refund. I would appreciate any advice or help you can provide me !..

Thanks

Cookie_Monster

of course you can change depreciation, it is after all only a notional accounting figure and can be drastically affected by the current resale rates of the item in question at any time.

Widely documented on here that the OMSP fluctuates randomly and wildly, your best bet it to find a handful of ads for similar specced and mileage cars of the same age as proof of current asking prices and go from there. I still think you have to pay it before appealing though.

robbie99

There are 13 2007 318ds on carzone with prices ranging from €9,950 to €15,450.

Average price is about €11,800.

If they're saying the OMSP is now €10,942 I wouldn't complain.

September1

Reason could be much simpler and is based on how Revenue is calculating depreciation due to mileage. If you buy a car with mileage slightly higher than upper limit of reasonable one and let it stay for few months, it may fell of this band. Try to recalculate with adding few 000s extra mileage and see if price goes back to previous one.

Bigcheeze

If the VRT on new cars increases, then surely the OMSP of used cars should also increase so it makes sense that it has gone up.

Cerbera

Declare the damage and the repair and when you go in to pay the VRT ask them, seeing as they are now charging you full OMSP which is based on a car in perfect condition, can you sell that car in the future and not bother saying it was damaged and repaired.

Now obviously you can't do that.

What this will do for you is that it will open the door for you to either get the VRT at a reduced rate or, more likely, it will mean that you will be in a good position to successfully appeal the rate you were charged and get a refund.

Make sure they document the fact that you did declare the damage and also make sure you have pictures of the damage and (if available) receipts for the repairs.

Senna

my mistake

bazz26

The only way I see around this is to pay the VRT and then appeal it. You will need to supply proof that you can buy an almost identical car down here for less than what they valued the OMSP to be.

Cash is king

D.M.B wrote: »

I purchased a 2007 BMW 318d slightly before christmas 2012 in the UK. The car had some light damage and a body shop in Northern Ireland repaired the car for me so I just got it back this week and booked it in for VRT inspection today.

Since I purchased the vehicle in December I have been checking the VRT price online regularly.

In December 2012 the OMSP was €11106 and the Payable VRT at 20% rate was €2221,

January 2013, 01/01/2013 and the OMSP had been reduced to €9411 ( Due to the vehicle now being a year older ) and the payable VRT at the New increased rate of 23% ( due to budget ) was €2164.

Febuary 2012 ,Today, 06/02/2013 and the OMSP has increased to €10942 ( increase of €1531 in 4 weeks !.. ) and the payable VRT at 23% is now €2516 ( increase of €352 ).

It appears to me that Revenue are clearly tamering with OMSP of vehicles as they see fit, They have also altered the rate of depreciation from January at 77% to currently Febuary at 73% which is not even possible for depreciation to reverse, there is clearly no foundation or research into what their OMSP is based on as I find it rediculas for them to even attempt to explain how a second hand used vehicle is worth €1531 more in the month of febuary than it was in the previous month of January. Common sence alone should tell them that a used car depreciates in value rather than increases.

I would like to know what options are open to me, Can I complain prior to the VRT inspection regarding the tampering of the OMSP of this model vehicle as I have print outs of all my previous quotations or must I pay the current price of €2516 and then appeal, jump through all their hoops and excuses for a few months and eventually get refused any refund. I would appreciate any advice or help you can provide me !..

Thanks

Unfortunatley it is your own fault.

The more times a car is queried as in on the calculation screen, the more it goes up. Obviously there may be other people doing the same but checking it as much as you say certainly wont help.

scwazrh

Why did you fix it prior to paying vrt? I would have assumed that a damaged car would have a lower omsp and thus have a lower overall amount of vrt payable.

Cash is king

scwazrh wrote: »

Why did you fix it prior to paying vrt? I would have assumed that a damaged car would have a lower omsp and thus have a lower overall amount of vrt payable.

It would make no difference what so ever.

michellie

Cash is king wrote: »

Unfortunatley it is your own fault.

The more times a car is queried as in on the calculation screen, the more it goes up. Obviously there may be other people doing the same but checking it as much as you say certainly wont help.

That is not how it works. Cop on.

Cash is king

michellie wrote: »

That is not how it works. Cop on.

Really, a revenue offical seems to think differently.

SGKM

michellie wrote: »

That is not how it works. Cop on.

That is exactly how it works. They monitor the site and "adjust" the OMSP for cars experiencing a lot of "activity" on the ros.ie website. The exact same thing happened to me about 3 months ago except my OMSP went up by c. €5k in a week (between me test driving the car and buying it) after I posted about the pricing of the car on another forum. I had printouts and figures to prove that they were messing with the actual OMSP and not the depreciation rate, which made it blindingly obvious what they were up to.

OP, I hope you have the original VRT quotes and if not, at least accurate figures recorded. All I can suggest is to pay it and appeal it, I did and got a reasonably big refund; they admitted to overvaluing the car by over 20%.

D.M.B

SGKM wrote: »

That is exactly how it works. They monitor the site and "adjust" the OMSP for cars experiencing a lot of "activity" on the ros.ie website. The exact same thing happened to me about 3 months ago except my OMSP went up by c. €5k in a week (between me test driving the car and buying it) after I posted about the pricing of the car on another forum. I had printouts and figures to prove that they were messing with the actual OMSP and not the depreciation rate, which made it blindingly obvious what they were up to.

OP, I hope you have the original VRT quotes and if not, at least accurate figures recorded. All I can suggest is to pay it and appeal it, I did and got a reasonably big refund; they admitted to overvaluing the car by over 20%.

Thanks for the advice SGKM, That is what I intend on doing as I have a print out from each time I checked the VRT previously.

If this is true, this practice of adjusting the OMSP based on website activity on a particular model of vehicle cannot be accurate or legal as it is not based on actual sales of vehicles but mearly inquiries into VRT. Revenue claim they get their OMSP from regular research carried out and from CBG.ie but if this is true then their OMSP are deliberate over valuations in most cases and totally unfounded !.. Glad to hear you got a reasonable refund of the VRT you paid.

Senna

D.M.B wrote: »

If this is true, this practice of adjusting the OMSP based on website activity on a particular model of vehicle cannot be accurate or legal as it is not based on actual sales of vehicles but mearly inquiries into VRT. Revenue claim they get their OMSP from regular research carried out and from CBG.ie but if this is true then their OMSP are deliberate over valuations in most cases and totally unfounded !.. Glad to hear you got a reasonable refund of the VRT you paid.

Prices do fluctuate depending on how many people search for that particular car, but they're not going to admit to that, they say the price fluctuate depending on their searches for used cars and the average prices.

robbie99 wrote: »

There are 13 2007 318ds on carzone with prices ranging from €9,950 to €15,450.

Average price is about €11,800.

If they're saying the OMSP is now €10,942 I wouldn't complain.

If the above is true you have no hope in appealing that the OMSP is incorrect, but if you do have the print-out of a previous lower price, you could win. Worth a try at-least. If you are going to appeal, go on carzone/donedeal/adverts etc and print out as many adverts as you can with your model of car being advertised for less than €10,942.

Kristopherus

D.M.B wrote: »

Thanks for the advice SGKM, That is what I intend on doing as I have a print out from each time I checked the VRT previously.

If this is true, this practice of adjusting the OMSP based on website activity on a particular model of vehicle cannot be accurate or legal as it is not based on actual sales of vehicles but mearly inquiries into VRT. Revenue claim they get their OMSP from regular research carried out and from CBG.ie but if this is true then their OMSP are deliberate over valuations in most cases and totally unfounded !.. Glad to hear you got a reasonable refund of the VRT you paid.

IMHO that kind of activity should be reported to the Ombudsman. If they think you have a good case, they will investigate fully.

D.M.B

Kristopherus wrote: »

IMHO that kind of activity should be reported to the Ombudsman. If they think you have a good case, they will investigate fully.

I agree, The OMSP increase of €1531 over a 12 day period leading to a VRT increase of €352 is annoying, but what bothers me more is that, Revenue are permitted to freely adjust OMSP's based on no vehicle sales price data what so ever, Just simply random figures depending on website activity which may or may not be related to a vehicle which has been purchased. In that regard it is not a vehicles OMSP but rather an untrained and unqualified revenue official valuation guess !..

In regards the previous post regarding similar BMW 3 series to my vehicle on Carzone,I accept there certainly are a few, 4 infact within a similar mileage to my car, however, all of them are BMW 320d M Sport or SE models. My car is a BMW 318d ES ( Base Model ) so the prices of those cars on carzone cannot be compared to my car as they are a 320d and my car is a 318d.

robbie99

D.M.B wrote: »

In regards the previous post regarding similar BMW 3 series to my vehicle on Carzone,I accept there certainly are a few, 4 infact within a similar mileage to my car, however, all of them are BMW 320d M Sport or SE models. My car is a BMW 318d ES ( Base Model ) so the prices of those cars on carzone cannot be compared to my car as they are a 320d and my car is a 318d.

There are no Msports or 320ds in the link I gave.