As important as ever to shop around

HELPDESK:From J O'B: I wish to highlight an example of the need for customers to shop around – and not only in Ireland. In my own case I replaced one bi-xenon headlight on a 2007 Volvo S60. The final bill came to €867.57, with VAT bringing it to €984.69. I was shocked, and contacted a Volvo dealer in Belfast and another in England, where I had originally bought the car. Both quoted me the same price: £437. Taking the exchange rate at the time (August 2009), the effective price difference was 68.35 per cent.

Having contacted Volvo Ireland, they claimed that the UK and Irish operations are completely separate and set their own pricing.

This reader sent us all the correspondence with Volvo relating to his complaint and it certainly seems to be well-grounded. The headlight was not part of any promotional discount in the UK, but sold at a normal retail price. We contacted Volvo Ireland and managing director David Baddeley explained that the UK and Irish operations are completely separate and purchase parts from Sweden on their own account. He said that prices are benchmarked against competitors. While Volvo claims that many prices vary in both markets one would not expect such a big difference.

Perhaps retailers should remember that access to the Volvo UK market is but a short trip up the M1. The lesson for motorists is clear: shop around. The cost of a phone call can prove very worthwhile.

From LQ: There seems to be a noticeable discrepancy between the prices published on some websites and the offers when you go to dealers. Is there any official used car price guide out there so I know I’m not being ripped off? Online I was looking at the exact same cars for nearly €2,500 more than I was being offered on trade-in. The dealer claims it’s down to overheads and they are merely the opening prices. I don’t buy it – the car or his excuses.

There is no comprehensive price guide for used cars in the public domain, largely because opening prices set by dealers often reflect the market at a particular time as well as the dealer’s stock.

In larger markets it’s normal to take out the highest 10 per cent of valuations and the lowest 10 per cent, then work out a median. The problem in Ireland is that in all but the most popular models, the volumes sold can be quite small meaning you don’t get strong data. Despite these limitations, there should be a better system for recording the average sale prices for used cars.

For many families, the car is the second biggest investment after their house and anything that takes away the “magic and mystery” of used-car valuations that leaves so many buyers mistrusting car dealers is only to be welcomed.

Send your queries to Motors Helpdesk, The Irish Times, Tara Street, Dublin 2 or e-mail motorshelp@irishtimes.com