Michael McAleeranswers your questions
From Niamh O'Brien:
I am considering changing my car and getting an SUV. I was thinking of the Toyota RAV 4 or the VW Tiguan. I want an automatic, so the relevant RAV 4 for me starts with a 2-litre. I am concerned that it would be a bad trade-in, given the new taxation laws.
The Toyota is also quite basic in the interior compared to the Tiguan, although it is quite a bit cheaper. I will either change this March or hold off until March 2009. What would you advise?
At present the Tiguan 1.4-litre TSI Tiptronic - the smallest engine in auto you can get in the model range - falls into the low 22.5 per cent tax bracket for vehicle registration tax (VRT), based on its engine size of just 1,399cc. It starts at €40,610. Under the new emissions-based taxes, the car falls into the 32 per cent VRT rate.
That means either VW takes a significant hit on its profits (it is able to get a better CO2 rating than at present), or the price will rise from July 1st.
The Toyota already has a tax band of 30 per cent VRT, and this will rise to 32 per cent from July 1st, given its 212g/km CO2 rating for the 2-litre Luna Auto. The current price is €35,790.
In terms of trade-in, while it is still not clear how the market will handle the minute changes that will occur, it's worth noting that both models carry very popular brand names with strong records for reliability. There should be no shortage of buyers.
What's more, if prices go up for new models come July the used values will be stronger as a result. There is also the fact that these used models will operate the old road tax system.
With the Tiguan in particular, that could mean a difference of an annual road tax bill of €320 if the car is registered before July 1st, and €1,000 thereafter. That would likely make a pre-July Tiguan look rather fetching on the used car market.
With the RAV4, the tax difference will be €590 pre-July 1st, and also €1,000 after it.
In either case the advice would be to buy in March this year, unless you go for the 2-litre diesel Tiguan.
The tax on this car should fall as a result of the changes, and my colleague Shane O'Donoghue, who tested the Tiguan at launch, was more impressed with it, especially given its additional torque.
Overall, my favoured choice would be the Toyota, with a plan to buy it before the July 1st changeover.
From Michael McNamara:
As the new tax rules will apply to second-hand cars imported from July 1st, how will CO2 emissions be estimated for tax purposes?
Will the Revenue Commissioners accept information from the UK Vehicle Certification Agency (http://www.vcacarfueldata.org.uk) as conclusive?
The CO2 emissions will have to be declared to the Revenue Commissioners on form VRT4 (declaration for registration of a used vehicle).
According to a Revenue spokeswoman: "Acceptable documentary evidence (provided the CO2 emissions is shown on the documents) will include:
- the model's Certificate of Conformity, a document which, since 2001, European law has required to contain such information, or
- a previous registration certificate, or
- a National Car Test carried out elsewhere within the EU (it does need to list CO2 emissions)
- certificate from the manufacturer or distributor."
That may seem straightforward, but industry sources say that even the official certificates of conformity are often filled out incorrectly or with omissions.
As for a certificate from the manufacturer, they may be slow in processing this documentation, particularly if you are importing a car for less than their own official distributor is selling equivalent models for.
In this instance, the best bet is to go back to the distributor in the country of origin.
"Where a certificate or a measurement is not available or does not satisfy the Revenue Commissioners, the VRT charged will be at the maximum VRT rate allowable (ie 36 per cent). Such a VRT rating would be open to appeal through the VRT appeals system," says the spokeswoman.
In terms of the VCA website, she stated: "The Revenue Commissioners are at present examining a range of documentation and websites, eg Sustainable Energy Ireland and vcacarfueldata.org.uk to ensure that their data in relation to CO2 reflects accurately the CO2 of vehicles at the time of manufacture. A list of approved documentary evidence and reference points which meet Revenue's requirements will be published in due course."
Due course, unfortunately, does not necessarily mean anytime soon.
From A Bartl:
Regarding the report in last week's Motorsabout the future of the car, it's all fine and well to suggest that the next generation of cars are going to be electric, but where are we going to charge these vehicles? On the side of the street?
You are spot on in pointing out the practical limitations at present. Some people have the luxury of parking in their private garage, but most of us have to make do with outdoor parking.
A new infrastructure of charging points will have to be created, not only at houses but also in public areas.
When I broached this subject with one of the senior engineers at Detroit, he said that plans were already being discussed with the electrical distributors in the US.
The plugs may be similar in nature to those used on campsites for caravans.
At present electric cars have a short range for a long charge time. Engineers are concentrating on reducing the charge time, rather than increasing the range.
Most doubt whether a range similar to an oil-burning engine - 300km or more - is possible on a single battery charge for the foreseeable future.
Instead the plan is to mix better battery efficiency with more fuel efficient engines (used to recharge the battery rather than power the car) and in the medium term, hydrogen as a source of fuel for electric motors.
Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or e-mail motorshelp@irish-times.ie