Irish v UK prices

not1but4

My father is thinking of getting a new car so I was having a look on CarZone.ie and with me living in Belfast I looked up the prices of cars on UsedCarsNI.co.uk and I noticed quite a big price difference. Got me wondering why are prices so difference between here and the north?

For example
€21k here in ROI
http://www.carzone.ie/search/Toyota/Avensis/2.0-D-4D/36513696442758620/advert?channel=CARS

£11k (€13k) in NI
http://www.usedcarsni.com/116267994

So not taking into account the roughly €3-4k VRT why is there a €8k difference in price for the same car?

Is there a lower tax or something on cars in cars in the UK?

visual

Because we get robbed with VRT and VAT on new cars from the get go. Then motor tax thats not road tax is added on. You didn't really think a mass produced car costs tens of thousands to produce.

Even Europe has previously idenfiy the VRT to be unjust but its never going to go away.

Use the VRT calculator online to see how much extra you will have to pay then you can decide if its worth importing. Most times it is as you can get higher spec model with a few goodies

bazz26

OP, you used an example of one of the most expensive 2011 Avensis on carzone.ie which has also nearly half the mileage and is a higher spec than the example of the NI car you posted.

This is a more comparable example of similar model and spec to what you can buy down here for €17500:


http://www.driving.ie/used-cars/Toyota/Avensis/2.0-D/33913654212153080/

derry

A car that cost $20,000 in Irl new would cost in Japan less than €10,000k often more like€6,000

World wide the cost to build a car in terms of raw material eg iron before it is melted down rubber before it is manufactured is about €20 in raw materials .The refined raw materiel eg sheet metal copper in wires with plastic covering rubber ready to mold equals about €100 of refined materials .After the car is assembled on the assembly line it rolls off the assembly costing about €1500 euro and top of the range might cost as much as €2000. Then between Ireland garage where you buy car and Japan ,Korea or Germany or France etc there are all sorts of middle men .For example the cars costing €1500 leaving Japan will make the manufacture some €500 in profit to them when they ship them to Europe. Some mega buyer will buy the ship load for ~€2000 a car for some region like the UK and put his mark up on it .Then several other groups will buy parts of the shipments and add their mark up .Then on the fore courts the tax VAT and in ROI the VRT will kick in and the €6000 euro car in Japan will cost $20,000.

As the UK is car manufacture and they want to sell cars they have to keep tax lower .Often they cant tax imports for higher tax under world trade agreements so all makes have lower tax

ROI doesn't make cars so the Provisional Irish government want to get its chunk for nothing so they keep the VRT on the cars

That's the full story of how the provisional Irish government rips your face if your car owner

Derry

whomitconcerns

Errrrm.....ok.....

derry wrote: »

A car that cost $20,000 in Irl new would cost in Japan less than €10,000k often more like€6,000

World wide the cost to build a car in terms of raw material eg iron before it is melted down rubber before it is manufactured is about €20 in raw materials .The refined raw materiel eg sheet metal copper in wires with plastic covering rubber ready to mold equals about €100 of refined materials .After the car is assembled on the assembly line it rolls off the assembly costing about €1500 euro and top of the range might cost as much as €2000. Then between Ireland garage where you buy car and Japan ,Korea or Germany or France etc there are all sorts of middle men .For example the cars costing €1500 leaving Japan will make the manufacture some €500 in profit to them when they ship them to Europe. Some mega buyer will buy the ship load for ~€2000 a car for some region like the UK and put his mark up on it .Then several other groups will buy parts of the shipments and add their mark up .Then on the fore courts the tax VAT and in ROI the VRT will kick in and the €6000 euro car in Japan will cost $20,000.

As the UK is car manufacture and they want to sell cars they have to keep tax lower .Often they cant tax imports for higher tax under world trade agreements so all makes have lower tax

ROI doesn't make cars so the Provisional Irish government want to get its chunk for nothing so they keep the VRT on the cars

That's the full story of how the provisional Irish government rips your face if your car owner

Derry

DanWall

I recall years ago the EEC said there could be no VRT so it was put on to VAT. This is one of the things our government ignores EEC

colm_mcm

They did what now?

lomb

derry wrote: »

A car that cost $20,000 in Irl new would cost in Japan less than €10,000k often more like€6,000

World wide the cost to build a car in terms of raw material eg iron before it is melted down rubber before it is manufactured is about €20 in raw materials .The refined raw materiel eg sheet metal copper in wires with plastic covering rubber ready to mold equals about €100 of refined materials .After the car is assembled on the assembly line it rolls off the assembly costing about €1500 euro and top of the range might cost as much as €2000. Then between Ireland garage where you buy car and Japan ,Korea or Germany or France etc there are all sorts of middle men .For example the cars costing €1500 leaving Japan will make the manufacture some €500 in profit to them when they ship them to Europe. Some mega buyer will buy the ship load for ~€2000 a car for some region like the UK and put his mark up on it .Then several other groups will buy parts of the shipments and add their mark up .Then on the fore courts the tax VAT and in ROI the VRT will kick in and the €6000 euro car in Japan will cost $20,000.

As the UK is car manufacture and they want to sell cars they have to keep tax lower .Often they cant tax imports for higher tax under world trade agreements so all makes have lower tax

ROI doesn't make cars so the Provisional Irish government want to get its chunk for nothing so they keep the VRT on the cars

That's the full story of how the provisional Irish government rips your face if your car owner

Derry

I doubt much of that is true. However I doubt the raw materials prior to refining are worth alot . 1000Kg of iron is 114 US dollars and rubber is 2.5 dollars per kilo.
A new 20 grand Golf is in reality around 8k tax, 1k transport, 1k in refined raw materials and the rest is labour and repayment on capital invetment in whatever form ie design, manufacture etc What you are paying for is peoples 'energy'
Any car is in reality worth very little as used prices of perfectly good cars ie the true utility value reflects that.
The real value in the car is actually the fuel that fuels it. Sad but true.
Everyone wants the new model of everything when there is in fact little if any improvement on the old in real terms. Cars reached their zenith in terms of looks, safety ,economy, long term reliability, rust proofing around 8 or 10 years ago. Any improvements these days are at the cost of long term reliability to extract the last mpg out of it. So a net negative.

Big Nasty

Tax basically OP, be it VRT, VAT or whatever.

However with you living in the North you could buy the car for your Dad and import it to Ireland 6 months later (or is it 12 now?) sans VRT then sell it to your Dad.

NIMAN

Did Europe ever actually say that VRT was illegal?

I live in the border region and for ages you'd hear those who moved from NI to RoI to avail of cheap housing come out with this line. They'd also say that it was being challenged in court but any time I asked anyone for a link, none were provided.

afaik, Ireland is not the only country to charge some sort of registration tax, so we aren't the only country doing it.

Del2005

NIMAN wrote: »

Did Europe ever actually say that VRT was illegal?

I live in the border region and for ages you'd hear those who moved from NI to RoI to avail of cheap housing come out with this line. They'd also say that it was being challenged in court but any time I asked anyone for a link, none were provided.

afaik, Ireland is not the only country to charge some sort of registration tax, so we aren't the only country doing it.

IIRC the single market made import taxes illegal. So not too loose revenue, if it's not got from new vehicles it has to come from some other source or services have to be reduced, they introduced a tax to register your new vehicle. Nearly all countries have a registration tax, but we our in the higher range.

slimjimmc

NIMAN wrote: »

Did Europe ever actually say that VRT was illegal?

I live in the border region and for ages you'd hear those who moved from NI to RoI to avail of cheap housing come out with this line. They'd also say that it was being challenged in court but any time I asked anyone for a link, none were provided.

afaik, Ireland is not the only country to charge some sort of registration tax, so we aren't the only country doing it.

No, they didn't. But what they did say was that the VRT policy of treating 3 mth old cars as brand new was unfair so change it or else they see Irl in court.
http://www.independent.ie/irish-news/eu-seeks-change-to-unfair-vrt-system-26815278.html

None of that makes VRT illegal.

Damien360

derry wrote: »

ROI doesn't make cars so the Provisional Irish government want to get its chunk for nothing so they keep the VRT on the cars

That's the full story of how the provisional Irish government rips your face if your car owner

Derry

This alone has me giggling like a fool. You just could'nt make it up

Guy:Incognito

NIMAN wrote: »

afaik, Ireland is not the only country to charge some sort of registration tax, so we aren't the only country doing it.

We're not even the most expensive.

Guy:Incognito

Damn double post

JohnBoy26

MCMLXXV wrote: »

Tax basically OP, be it VRT, VAT or whatever.

However with you living in the North you could buy the car for your Dad and import it to Ireland 6 months later (or is it 12 now?) sans VRT then sell it to your Dad.

If the op were to do that they would have to be a resident here and own the vehicle here for 12 months afaik before they can sell it. If the op chooses to sell it before the 12 months are up they will have to pay the vrt.