Anyone importing one of the 40,000 so-called ‘zombie’ cars from the UK will be shocked at the pig-in-a-poke they got – when all they had wanted was to grab a good deal.
But they shouldn’t be.
It has long been observed in the motor industry that there is a massive racket involving cars taken from salvage yards, stuck back together after a write-off collision, and flogged to unsuspecting Irish drivers.
RTÉ’s recent exposé on Prime Time shone a bright light on the shocking scandal, but it is one which many unwitting motorists find themselves embroiled in every day.
Motorcheck.ie is one of the leading Irish companies which checks car histories – and they found 39,336 such vehicles after a fairly cursory glance at the car histories. It’s a check which anyone can make, and for the relative paltry sum involved, they should do it.
While the cars may be serviceable enough to drive – although that is debatable – the point is that they should be clearly marked as ‘ex-salvage’ or ‘write-offs’. If not so marked, they could be unsafe, especially if the driver is unaware of the fact.
That would deter most buyers, and would certainly put off the reputable dealerships which make up the bulk of UK importers. This means these transactions are often ‘side-of-the-road’ deals, and are not traded through garage forecourts who depend on maintaining a good reputation.
“At the shadier end of the market, it was evident for some years that some UK cars were being dumped onto the Irish market,” says Conor Faughnan, formerly of AA Ireland and now a respected motoring consultant.
“These are ones which are crash repaired, for example, or clocked. It’s illegal to clock a car, though that wasn’t always the case in Ireland – but if you buy, you will be left with very little recourse. The shady dealer is more inclined to do that when the buyer is foreign. It’s out of sight, out of mind.”
At the very least, it is worth taking the time to consider your options. Maybe even take a mechanic with you for inspection before you part with your cash. They’ll do more than kick the tyres, and they’ll know what documentation to look for.
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Value
“A UK import can be great value,” says Mr Faughnan, even after Brexit and the imposition of harsh new duties and taxes.
“You can come out on top with a good deal – but only if you research it properly. It’s sometimes worth your while at the luxury end of the market. If you want €80,000 of snazzy Audi, six months old, do your homework and you might come out ahead.
"What you’re avoiding is the ‘metal price’, which is paradoxically cheaper in Ireland. Take all the tax off, and look only at the metal price, it is cheaper here.
“Even net of all the charges, it can be good value. But if you’re looking to replace a mid-range family car after a few years, and aren’t someone who can casually spend 20k in cash, then you’re better off with a SIMI dealer in Ireland.
“But people make mistakes. One is buying from someone you don’t know to be a main dealer. In Ireland, that’s an SIMI member. In the UK, it’s SMMT. They have a reputation, and an arbitration scheme if something goes wrong.
“If you’re ringing a mobile number and meeting someone at a service area, then you really are asking for trouble. Even if you have a relatively minor problem, an Irish dealer can look after it, even on a goodwill basis. If it’s UK, you’re really stuck.”
The pluses include the fact that most British cars are well maintained, and the sterling differential can work out in your favour.
The big disadvantage is that you have little or no after-sales support. And there are hefty tax implications too, as vehicles are a protected product in the Irish market and Revenue Commissioners charge more now than used to be the case – so do your sums carefully before committing.
The best deals are usually for higher-end high-spec cars.
Drawbacks
Whether buying in Ireland, or importing from the North or UK, only buy from a reputable known dealer. You need to ask whether you can trade in your own car if you drive it over, or whether it’s better to sell it first and bring the cash.
Vehicle Registration Tax (VRT) is payable on all car imports within 30 days of importing. Collected by Revenue, strict rules apply to its calculation. Any challenge for non-payment could result in the car being seized by gardaí.
VRT is based on Open Market Selling Price (OMSP) which Revenue determines. There is a VRT calculator on its website you can use. The average tax is 13.3pc, but there is an added 1pc for diesel cars. There is a reckoner on Revenue’s website which can point to the tax – but in reality, you’ll only know for sure once you check (see panel).
Nitrogen Oxide (NOx) emissions are taxable on all vehicles except fully electric cars. For a Diesel SUV, expect it to add €1,000 to the price.
Strict requirements apply to any car which is imported from the UK, including Northern Ireland. Here’s what is mandatory:
A ‘V5’ form from the UK seller. Equivalent to a Vehicle Registration Cert you will not be allowed return without it. Up-to-date documentation showing bill of sale, price paid, service history etc is required.
Assessment at an NCT centre within seven days of import. Make the appointment before you travel. They will check value and road worthiness (at your cost).
Payment of VRT within 30 days. It is based on the age, model, mileage, size and engine type of the car. Revenue will calculate the open market value, which is non-negotiable.
VRT and customs duty must be paid if the car is less than six months old.
You must fit EU compliant registration plates within three days of the NCT assessment
Insurance and tax is mandatory before arriving back in Ireland, so arrange both when you buy.
NOx tax is based on emissions. The first 0-40 mg/km is €5, the next 40 mg/km or part thereof, up to 80 mg/km is €15 and the remainder above 80 mg/km is €2. If NOX cannot be accurately assessed, default maximums apply.
Examples
2016 4-door saloon 1.8l petrol, value €27,871; VRT €5,852 + NOX €40 = €5,892 total