Post July Tax rates and USED cars

I have seen a lot of posts on AAM regarding the pricing of NEW cars post July.

The thing to remember is that the VRT will also affect the prices of USED cars.

In some cases the prices will go up and in some cases the prices will go down.

I have been on a few property websites that have a downloadable device that can track cached information about properties that have been listed on the internet over the last few months.

What I would LOVE to see is a similar program that can track used car prices on the internet.

Let's face it, if you are waiting till July to buy a used car, you want to make sure that the reduction will actually appear when the time comes wouldn't you?

Remember the change over to the Euro? we all got shafted there didnt we.

Why?

Because of the confusion surrounding the change over.

Trust me when I say that this Tax change is proving to be more confusing than the up coming Lisbon treaty.

So can anybody out there arm us with the facts.

A Downloadable program to track the used car prices from Irelands used car websites.

I spoke to an independant dealer this morning about a used Volkswagen Passat 1.9 TDI.

The price of the car is currently 12,500 Euro.

I asked the simple question "Will cars like this used VW Passat come down in price post July"

He told me NO.

Im confused here...........

Isn't part of that 12,500 residual VRT?

If I was to check the price of the same car same year on a UK website.....I would see a HUGE difference.

It's all very confusing

My understanding is that the new VRT affects new cars ONLY post July. If I buy a new car on 30 June, the current VRT regime will apply to that car for the life of that car, regardless of how many times it is sold on over the next twenty years.

The new VRT system will only affect secondhand cars that were bought after 1 July.

How can you have VRT on a secondhand Irish car, its already registered. The only way you can have reduced VRT on used cars is with used cars brought in to the country where the VRT has to be paid. After july 1st this will be the case.
However the VW dealer is not been honest, as due the fact that a new VW Passat will have reduced VRT from July 1st and thus be cheaper this will have a trickle down effect on used Passats. To put it simply if a 2 year old passat TDi is currently 27K and a new one is 36K dropping to 33k after july 1st, It would be naive for a dealer to still expect 27K for the older car not only due the gap closing between these 2 cars, but also due the add on of cheaper road tax on a new car. They would have to reduce the price of the 2 year old car and this would reciprocal effect on older cars.
That dealer is been greedy. The fact is dealers at the moment are absolutely choc a bloc with used cars that they cant shift as the wont drop their prices until july.
If your canny go in with a way below cash offer without a trade in and walk away if hes not interested as someone will take your hand off for it soon enough.

Ceatharlach said:

The fact is dealers at the moment are absolutely choc a bloc with used cars that they cant shift as the wont drop their prices until july.
If your canny go in with a way below cash offer without a trade in and walk away if hes not interested as someone will take your hand off for it soon enough.

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This is a great time to get a bargain for second hand cars from dealers. Many cars that will be affected by VRT will have to have a drip effect on second hand cars. Now is a good time to strike a deal with dealerships overloaded with second hands cars, which will drop in value in a couple of months.

Ceatharlach, ask any car dealer why the prices of second hand cars are so high in Ireland and they will tell you......residual VRT!

So if VRT is coming down for new cars then there should by rights be a noticable drop in the value of second hand cars.

That means that post July 1st that many of the used cars out there for sale are going to drop in value.

If the VRT on certain cars is going to drop by 10% ( please check for yourself on www.vrt.ie ) then that particular car used will drop by a chunk of change too.

Mind you certain cars are going UP in price.

Im also wondering will used cars in the increase bracket climb in price too.