Michael McAleeranswers your questions
From David Golding:
Has there been any indication of how second-hand imports from Japan are going to be treated for VRT purposes after July next year? There does not seems to be any CO2 figures published for these so how will the tax be calculated?
The CO2 emissions will be taken from the model's Certificate of Conformity, a document which, since 2001, European law has required to contain such information.
The downside is that most dealers tell us that these forms are rarely filled in properly and CO2 figures are often missing. In the case of imports, the rating will be taken from the certificate, some form of evidence from the manufacturer or a distributor. The problem is that a distributor for the brand you are importing is unlikely to feel obliged to be overly helpful when you come looking for official documentation on a car you are not buying from them.
The Revenue officials do warn that if there is no record then the VRT could be set "at the maximum VRT rate allowable (36 per cent)". Therefore, be sure when importing a car that there is documentation to accompany it and check with Revenue that they will accept whatever forms are available before you sign over for the car.
From M FitzGerald:
It is depressing to read that several motor manufacturers have been supposedly "supporting the sale of 2-litre diesel models" over the years. I simply do not believe it, and suspect that this will be the excuse for maintaining their high prices.
This will particularly be the case with so-called premium marques. Do you realistically expect Audi, BMW and Mercedes to cut prices by €5,000 or more?
Last week's reader considering a BMW 320D coupé should be able to save €10,000 by waiting until June, but pigs may also fly and the Mahon Tribunal may suddenly progress smoothly.
I wonder is there a role for the Competition Authority to closely monitor pre- and post-VRT change prices. Does this body have the power to enforce competition laws or to monitor possible monopolistic type behaviour that I suspect will emerge on this issue?
The car firm quoted last week was a mainstream brand and not premium. Michael Nugent, BMW's marketing director says the brand is committed to passing on the savings. "The only reason that prices will not fall by the full amount is if we increase specifications on models at the same time as the price changes, but if that happens on some models it will be completely evident to buyers," he says.
According to the Competition Authority, it would only arise as an issue for them if the dealers were colluding to maintain the higher price, thereby engaging in price fixing.
It's really down to advocacy groups and others to highlight companies that are not passing on the full savings. As I said last week, we all have to watch the price changes carefully come July 1st.
From WP Roger Bannon, Co Dublin:
If I understand the details outlined in last week's Motors supplement, existing cars will continue to be taxed based on engine size, whilst new and used imported cars will be road taxed based on CO2 emissions from July 1st 2008.
This strikes me as very inequitable to those people who currently have a large or moderately engined car, but one with good eco-credentials and low emissions.
In the case of a 2006 /2007 Mercedes E320 CDI, the current road tax is €1,343 rising by 11 per cent from February 1st to €1,500. Because this car has exceptional low CO2 emissions for its engine size, it will qualify for Band F road tax at €1,000 for new and imported second hand models from July 1st.
However, a similar aged car imported used will enjoy road tax at a level €500 cheaper and probably pay much less VRT.
It is also likely to hold a higher used value because the ongoing road tax will be at least €500 less than a similar car sourced in Ireland, new or used, before July 1st 2008.
I am a keen supporter of the efforts of the Government to encourage greener and more economical cars. However, it is grossly inequitable to penalise those who have, with the encouragement of the Government in recent years, already taken the eco-friendly decision to acquire economical low emission vehicles.
Come on Mr Gormley, be consistent and fair. All cars should pay road tax on the same basis.
There is no real justification for the two-tiered system except that it may require some effort from the civil servants to work it out.
From Finbarr Waldron, Cork:
I am just writing to point out an anomaly in the proposed new motor tax rates which will impact badly on those who currently own low emissions cars.
I think many people are confused by all of the recent changes in motoring taxes and don't realise the implications that they may have for them.
These are just two of the numerous e-mails and phone calls we have received from irate motorists who purchased cars with low emissions, seemingly in an effort to keep in line with Government thinking and environmental policy, but who now find themselves paying the price for acting too soon.
The two-tiered system being proposed has many flaws, not least that it seemingly fails to benefit motorists who have been environmentally proactive in their purchases to date.
Indeed, not only does it fail to offer them any benefits, but as Mr Bannon points out, they could well suffer financially for their choices when they go to resell their cars.
It also fails to take account of the number of old polluting cars on our roads.
If they were serious about lowering the transport element of our emissions, perhaps they would have been advised to penalise these cars just as much as the big-engined polluters.
Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or e-mail motorshelp@irish-times.ie