Buying new car from Northern Ireland

rob1air

Ok I have read through most of the threads on importing cars from UK etc and to be honest they all give so much info and it seems pretty straightforward seems being the operative word. With the sterling rate being so good and my family on the look out for a new car I have started the process of getting prices from Northern Ireland for either a new VW Tiguan or Land Rover Discovery Sport although the sport is prob outside our budget but one can dream...

So here is the breakdown.
Northern Ireland Dealer;
VW Tiguan R-Line £ 30500.00
Vat back £ 5500.00 (this is returned by dealer after VRT process complete)
VRT = € 6000.00 (this is an approx value as dont think the new tiguan is on the VRT datatbase)
Total cost € 34000.00 (taking today's exchange rate)

Irish Dealer;
High Line with R-Line package
Total cost: € 40500.00

So the question is am I correct? The big question is when there are such big savings to be made why doesn't everyone buying a new car buy it from the North/UK

Sorry for the long post and appreciate feedback.

GustavoFring

Irish VAT is applicable on it too, unless greater than 6k km on the clock or over 6 months old.

On new cars our pre-tax prices are amongst the lowest in Europe. It's the VRT makes the difference up.

rob1air

Hi Gustav,

So your saying on top of the 34k there is vat of 23% on top making it €41820.00 ?

colm_mcm

The VAT goes on before the VRT.

Are you going on list price for Ireland or have you negotiated a discount?

rob1air

I am working just under list price there is very little negotiation on price especially cause we are buying it straight. So the approximate vat on top would be about 5k bringing the cost of the Northern car up to 39k now I know why not more people buy across the pond as the saving is minimal plus you dont have all the hassle of paperwork etc...

Soarer

Or buy something that's 6 months old and has over 6k kms, and save yourself a small fortune and a whole lot of hassle.

rob1air

mmm yes that would be a good alternative just not many Tiguans available 6 months old as is such a new car. Am guessing that my calculations would be the same but I wont get vat back on 2nd hand car and will also not need to pay vat in Ireland just the VRT. Will have to see what is available or maybe a Land Rover Discovery Sport....dreams..

colm_mcm

You get discounts for buying straight. That's just how it works in Ireland.
Level of discount will vary of course and the Tiguan is a new model but don't just assume you have to pay list because nobody pays near full price on 95% of deals.

grogi

rob1air wrote: »

mmm yes that would be a good alternative just not many Tiguans available 6 months old as is such a new car. Am guessing that my calculations would be the same but I wont get vat back on 2nd hand car and will also not need to pay vat in Ireland just the VRT. Will have to see what is available or maybe a Land Rover Discovery Sport....dreams..

Brand new or pre-owned - if you need to pay VAT here, you will get a refund in UK. It might take a while, but this is how harmonised market (still) works...

prettyboy81

Just an example in the link, not including VRT but some bargains to be got if the money is right.

http://www.johnmulhollandmotors.com/hyundai/view-used/6651/2016-hyundai-i40-17-crdi-se-nav-141ps-saloon

bazz26

prettyboy81 wrote: »

Just an example in the link, not including VRT but some bargains to be got if the money is right.

http://www.johnmulhollandmotors.com/hyundai/view-used/6651/2016-hyundai-i40-17-crdi-se-nav-141ps-saloon

Just for comparison:

£15k is about €17k
VRT is coming in at around €4.5k
Landed price circa €21.5k.

This one is asking €23.5k, just wonder how much you could buy it for in a straight deal? €22k?

http://www.driving.ie/used-cars/Hyundai/i40/Executive-VIDEO/73533554083151701/

Bit of a saving and difference in spec but not huge by my calculations.

Soarer

bazz26 wrote: »

Just for comparison:

£15k is about €17k
VRT is coming in at around €4.5k
Landed price circa €21.5k.

This one is asking €23.5k, just wonder how much you could buy it for in a straight deal? €22k?

http://www.driving.ie/used-cars/Hyundai/i40/Executive-VIDEO/73533554083151701/

Bit of a saving and difference in spec but not huge by my calculations.

How come in your calculations you can knock €1500 off the Irish price, but use the full asking price up North?

Stallingrad

If you have your heart set on a Tiguan wait six months, bypass all the VAT BS and buy from GB instead of up north, better savings to be had there.

colm_mcm

Soarer wrote: »

How come in your calculations you can knock €1500 off the Irish price, but use the full asking price up North?

Generally speaking, stuff in the UK/NI is priced to sell. They don't tend to build in the same discount into the asking price.

rob1air

Budget would be around 35k although would love to be closer to 30k. Problem is she wants as new as possible and is looking in the Tiguan,Tuscon, etc.... range I have to say I liked the Tucson when it first came out now that you see one everywhere the appeal and striking appearance have kinda worn of for me but the price point on them is dead on... I would prefer to go for a good second hand car just need to convince herself...

colm_mcm

look at a new Qashqai or an x-trail 5 seater, both would be well in budget with the €4K scrappage, I'm sure you could find a car to trade in?

If not, there are heaps of nearly new high spec ones within budget.

NIMAN

rob1air wrote: »

Hi Gustav,

So your saying on top of the 34k there is vat of 23% on top making it €41820.00 ?

You only pay VAT once.
So if you pay it in RoI, you don't pay it in NI.

Soarer

colm_mcm wrote: »

Generally speaking, stuff in the UK/NI is priced to sell. They don't tend to build in the same discount into the asking price.

Not in my experience. The 3 times I've imported something, I've gotten at least £1000 off.

You'll always get something off when you're exporting as they don't have to give a warranty.

My starting bid for that Hyundai would be £13k, with the card in my hand to give a deposit over the phone. You'll get nowhere if you faff about. Ready to go there and then and you'll always do well.

Then again, if you're happy to give the asking price because of "generally speaking", more power to ya.

Walter2016

NIMAN wrote: »

You only pay VAT once.
So if you pay it in RoI, you don't pay it in NI.

OP already stated that -
VW Tiguan R-Line £ 30500.00
Vat back £ 5500.00 (this is returned by dealer after VRT process complete)
VRT = € 6000.00 (this is an approx value as dont think the new tiguan is on the VRT datatbase)
Total cost € 34000.00 (taking today's exchange rate)

But OP forgot to add Irish Vat @ 23%., so landed price will be over 40k.


When exchange rate was at 70p-75p, the ex vrt price in Ireland was about 10%-15% cheaper than UK for many cars - particularly german marques.

With rate at 90p, its probably about 5% the other way.

Savings are in the large volume "fleet" cars that are made in UK (think Nissan, Honda, Landrover) and are 12 months old because the fleet buyers such as rental companies buy in huge volume, get their discount and then clear the cars out after 12 months.

The other thing that would stop me buying a new car from outside Ireland is the warranty - remember the UK will be out of eu in 2019, and there's nothing better than a local garage that you bought the car from to get things fixed if something goes wrong - personal experience on that one.

prettyboy81

bazz26 wrote: »

Just for comparison:

£15k is about €17k
VRT is coming in at around €4.5k
Landed price circa €21.5k.

This one is asking €23.5k, just wonder how much you could buy it for in a straight deal? €22k?

http://www.driving.ie/used-cars/Hyundai/i40/Executive-VIDEO/73533554083151701/

Bit of a saving and difference in spec but not huge by my calculations.

Your calculations are flawed.

thierry14

Soarer wrote: »

Or buy something that's 6 months old and has over 6k kms, and save yourself a small fortune and a whole lot of hassle.

Sorry probably been asked many times

But say I buy below 2016 Astra with 11k miles

What do I not pay vat or vrt ?

How much would this car cost all in roughly?

http://www.autotrader.co.uk/classified/advert/201606124864112?search-target=usedcars&postcode=m52ty&radius=1501&onesearchad=used%2Cnearlynew%2Cnew&fuel-type=diesel&year-from=2016&price-to=15000&year-to=2016&ni-only=on&minimum-mileage=from_5000_miles&minimum-badge-engine-size=2.0&maximum-badge-engine-size=3.0&sort=atcustom&price-from=500&adPos=1

Stallingrad

You pay VRT on every car. See https://www.ros.ie/evrt-enquiry/vrtenquiry.html?execution=e1s1
Cars 6 months old and over 6k kms no VAT payable.

Soarer

thierry14 wrote: »

Sorry probably been asked many times

But say I buy below 2016 Astra with 11k miles

What do I not pay vat or vrt ?

How much would this car cost all in roughly?

http://www.autotrader.co.uk/classified/advert/201606124864112?search-target=usedcars&postcode=m52ty&radius=1501&onesearchad=used%2Cnearlynew%2Cnew&fuel-type=diesel&year-from=2016&price-to=15000&year-to=2016&ni-only=on&minimum-mileage=from_5000_miles&minimum-badge-engine-size=2.0&maximum-badge-engine-size=3.0&sort=atcustom&price-from=500&adPos=1

You'd only pay VRT.

VRT is coming in at €3611 for that car.
XE.com is coming in at €13,350 if you give asking price. So round that up to €13,500 for banks and stuff.
Give yourself €500 for travel.

So you're looking at around €17,500 on the road here. Obviously every £100 you get off the asking price will save you €110 off that. And more realistically the travel will cost around €300 including diesel. But worst case you're looking at €17,500.

Soarer

Just saw it's up the North, so that's the €500 travel saved.

And again, if you're genuinely interested in the car, I'd ring them with my credit card offering them £10k.

Walter2016

thierry14 wrote: »

What do I not pay vat or vrt ?

You effectively are paying UK vat as the original owner paid UK vat.

When buying a new car the UK vat is refunded and Irish vat is paid - so no matter what, a max difference of 3%

As above, VRT is payable is all cases no matter how new or how old the car is.

bazz26

prettyboy81 wrote: »

Your calculations are flawed.

So what price did cost you to land it here?

prettyboy81

bazz26 wrote: »

So what price did cost you to land it here?

€2K saving based on the figures for taking a trip across the border.

Before haggling not sure what the haggle price would be for either car. IMO, unless you get a serious bargain there is good savings made heading up North.

prettyboy81

prettyboy81 wrote: »

€2K saving based on the figures for taking a trip across the border.

Before haggling not sure what the haggle price would be for either car. IMO, unless you get a serious bargain there is good savings made heading up North.

Some more savings to be made with this 2016 model.

http://www.johnmulhollandmotors.com/hyundai/view-used/6681/2016-hyundai-i40-17-crdi-s-141ps-saloon-value-2016-reg-only-11676-miles

rob1air

Ok here is another stupid question so enquired with same VW dealer up the North regarding second hand. He has an ex-demo registered May 2016 with about 6000km on it. The question is can I still claim the vat back from the dealer but get away with not paying vat here in Ireland or am I stretching it... ? Have to say seen the UK prices for the Kodiaq and that looks like it could be another option as is the new Peugout 3008 this car buying business sucks so many options prices importing etc...

R.O.R

prettyboy81 wrote: »

€2K saving based on the figures for taking a trip across the border.

Before haggling not sure what the haggle price would be for either car. IMO, unless you get a serious bargain there is good savings made heading up North.

Well, categoric proof there. bazz26 - take note for future reference, rather than working everything out with figures.

Walter2016

rob1air wrote: »

Ok here is another stupid question so enquired with same VW dealer up the North regarding second hand. He has an ex-demo registered May 2016 with about 6000km on it. The question is can I still claim the vat back from the dealer but get away with not paying vat here in Ireland or am I stretching it... ? Have to say seen the UK prices for the Kodiaq and that looks like it could be another option as is the new Peugout 3008 this car buying business sucks so many options prices importing etc...

Depends on how much you like the Mountjoy part of town.
That would be vat fraud.

2time

Stallingrad wrote: »

If you have your heart set on a Tiguan wait six months, bypass all the VAT BS and buy from GB instead of up north, better savings to be had there.

how does that work?

thanks

bazz26

It works the same as buying in NI except it involves flights and a ferry.

colm_mcm

Cars on mainland U.K tend to be cheaper than in NI.

AMKC

rob1air wrote: »

Ok here is another stupid question so enquired with same VW dealer up the North regarding second hand. He has an ex-demo registered May 2016 with about 6000km on it. The question is can I still claim the vat back from the dealer but get away with not paying vat here in Ireland or am I stretching it... ? Have to say seen the UK prices for the Kodiaq and that looks like it could be another option as is the new Peugout 3008 this car buying business sucks so many options prices importing etc...

Have to say the Skoda Kodiaq is so dull looking inside the dash just looks so plain but the car itself does look nice. The Peugeot 3008 looks very nice too and that dash is just so very stylish has to be the best looking dash in a reasonably priced road car.
Have you looked at the Kia Sportage. I know the front styling is either love it or loathe it but the rest off the car is all very nice.

Ford Kuga is another option but it is getting on a bit now.

Streed

Does anyone know where you pay the vat on a new imported car?
Rang Revenue and they were clueless and there is no info on paying VAT on the nct website..
I'm starting to think you pay it at the nct centre but then you have to turn up with a bank draft for some approximate amount, crazy stuff I think

Walter2016

Streed wrote: »

Does anyone know where you pay the vat on a new imported car?
Rang Revenue and they were clueless and there is no info on paying VAT on the nct website..
I'm starting to think you pay it at the nct centre but then you have to turn up with a bank draft for some approximate amount, crazy stuff I think

It would be a customs entry. Ring customs and excise. Its their dept.

Btw sterling is now over €1.20

Streed

Walter2016 wrote: »

It would be a customs entry. Ring customs and excise. Its their dept.

Btw sterling is now over €1.20

Thanks Walter2016.
On the sterling rate, how is the VAT calculated?
If the invoice price is 20000 pound excluding UK vat, is the VAT calculated on the 20g or the 20g plus UK vat?
Also do customs use the exchange rate from the day it was purchased from the dealer or the day you pay the vat?
Thanks.

Walter2016

Streed wrote: »

Thanks Walter2016.
On the sterling rate, how is the VAT calculated?
If the invoice price is 20000 pound excluding UK vat, is the VAT calculated on the 20g or the 20g plus UK vat?
Also do customs use the exchange rate from the day it was purchased from the dealer or the day you pay the vat?
Thanks.

Customs use exchange rate they set weekly.

Vat is on net price as vat is only charged once.

On 20k stg, vat would be 23% of about €24k + vrt.

Streed

Walter2016 wrote: »

Customs use exchange rate they set weekly.

Vat is on net price as vat is only charged once.

On 20k stg, vat would be 23% of about €24k + vrt.

Is vat charged on vrt?

Walter2016

Streed wrote: »

Is vat charged on vrt?

Vat is charged on the complete price including all other duties and taxes, so I would assume its charged on price after vrt is added.