Michael McAleeranswers your questions
From IH:
I'm considering buying a BMW 320 coupé in the new year, and notice that after the Budget the price could come down significantly based on the VRT changes and engine emmissions from the car.
Do you know if distributors will pass on the savings in VRT to the customer or simply adjust the base cost to keep the selling price the same?Also, any indication if dealers will introduce these reductions before July to keep car sales moving?
Obviously we would hope that distributors will pass on the benefits of savings, particularly on diesel models. However, some were already preparing their positions to take some of the tax cuts. Last week, while carrying out post-Budget phone calls with distributors, one industry spokesman was keen to highlight that several manufacturers had "supported the sale of 2-litre diesel models" over the years, taking a hit on profits. Now that they are competitively priced again due to lower taxation, that could end.
There is no guarantee that all the tax savings are going to be passed on to consumers, and we will have to wait and keep a close eye on the revamped pricelists for July.
On a related issue, we're not suggesting that the motor industry would use confusion over the new tax regime to beef-up profit on smaller items, but buyers need to be aware that the changes in tax rates on the overall car should also be reflected in the accessories and options list. Everything from the radio to the tyres is taxed at the VRT rate when fitted to the new car, so it would only be right if their prices fell commensurately with a fall in VRT for that particular vehicle. Buyers should pay close attention to the pricelist before signing off. Again, it's too early to say if dealers will be offering reductions prior to July, but if they do, it's unlikely to be on popular models and I certainly wouldn't expect to see any deal on the 320 coupé.
From A Fitmaurice:
What are the emission levels for the new Audi A4 1.8-litre petrol and 2-litre diesel? Should I wait until after July to buy?
While Audi has published prices for the upcoming A4, they haven't adjusted them to the new tax regime. The 1.8-litre petrol engine has a CO2 figure of 169g/km, while the 2-litre diesel puts out 144g/km. Comparing the pre-July and post-July VRT rates, the petrol will go from a 25 per cent tax rate to 24 per cent, while the diesel version will drop from 30 per cent to 20 per cent. Based on these facts I would be to opt for the diesel and wait until after July 1st.
From Arthur Fortune:
I am curious to know why the TA (traffic announcement) facility is not operational in the Republic? I regularly travel between Ireland and Britain with my car, and I must say that when in Britain the TA button can be a godsend.
For the uninitiated, the TA button is a feature on nearly all car radios which alerts the driver to danger or hazards on the road; it is for all intents and purposes a constant up to the minute "Road Watch" alert system which interrupts your radio or CD player to inform you of hazards, then returning you to your radio station or CD.
I've also used the system in Britain and it's fantastic in rush-hour. The trials back in the early 1990s found that Irish people did not appreciate their radio stations being interrupted - despite the fact they could simply switch the system off with the touch of the TA button.
The official line is that there are no plans to re-introduce the system in the near future. If it ever does return, it would require agreement with all the radio stations and the service would have to be provided independently to prevent a glut of interruptions from every local station every time someone pulls up with a puncture. There is room for abuse of the system by some small stations keen to get some airplay and cut across the big players.
That said, it works fine in Britain and indeed on the continent so it's hard to see why we can't learn from them and introduce a workable system here. In the meantime, when in Dublin you can tune into Anna Livia 103.2. It has a really useful traffic service every morning and afternoon.
From L Flynn:
I didn't see any mention of biofuels in the budget coverage last week. Did the Minister not increase the reductions on these fuels. Surely that was a serious omission if this was meant to be a green budget?
While he didn't directly support biofuels at the pumps, he did reduce the VAT rate on seeds and supplies for biofuel production from 21 per cent to 13.5 per cent, in an effort to increase production of the fuel here. In reality, many government's are rethinking the principles behind biofuel subsidies.
Already crop prices have risen dramatically on the back of rising ethanol production in the US and there are fears, expressed in a recent World Bank report on agriculture, that while biofuel production can mitigate climate change and reduce our dependence on oil, there are also accompanying environmental risks and significant pressure on food prices.
o Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or e-mail: motorshelp@irish-times.ie