Get your figures right, from the start

MICHAEL McALEER HELP DESKAnswering all your motoring queries

From J Fahey: I was thinking of importing a 2007 Audi A4 1.9TDI from Britain. Am I correct in thinking that the VRT will drop from 25 per cent to 20 per cent in July, but the road tax will remain as is?

The question I have is - is there any reason to buy now rather than wait until July?

The obvious answer would be to wait and save up to 5 per cent on the registration tax. However, as I suspect you already realise from your question, the tax is based on what is called the Open Market Selling Price (OMSP) of the car, rather than the sales price. The problem is that there is already evidence the Revenue authorities are changing the OMSP prices for cars that would drop in price, in order to reflect their increasing popularity. We have spoken to concerned buyers who have watched the OMSP rise dramatically in recent weeks. The key is to get a sound OMSP from a Revenue office prior to importing the car.

As for road tax, you are right. As the car was first registered in 2007, it does not qualify for the new CO2-based tax system. Initial plans did allow for this, but it was changed by the Minister for the Environment, John Gormley, after pressure from the car industry in Ireland.

From TJ: Where do I find out the CO2 figure for my car? I asked the dealer I bought it off, however, he said he didn't know, but that it would be in the handbook. I have a 2005 Peugeot 206. Also, how can a car have a single CO2 figure? Surely it changes as radically as your fuel consumption?

You can find the CO2 rating through the manufacturer. Most of their websites now carry this information. In your case, the rating is 148 g/km. You are also right that the rating is rather an arbitrary affair. It is scientifically measured at EU approved test centres, including several in the Netherlands and Germany.

Cars are submitted for testing, with most of the figures measured on a rolling road and then allowances made for wind resistance. Several factors will change a car's carbon emissions. For a start, there is the rolling resistance from the tyres. This can be reduced, but that normally means reducing grip for braking as well. The rating figure is really an average official figure.

When you consider this method for garnering the figure along with the way the OMSP is calculated - through negotiations between manufacturers and revenue - then you start to see that the tax itself may seem like a straight calculation, but it's grounded on something far more arbitrary.

From Bernard: I have just purchased a 2003 Ford Focus RS, which is driven by a 2.0 litre turbo-charged petrol engine. I am out of the country, but intend to come home to import my car, before the end of June 2008. I am doing so to avail of the 30 per cent import rate, before that increases to 36 per cent after July 1st.

I will also tax my car before July 1st, and thus pay standard 2.0-litre road tax. The CO2 emissions of my Focus RS are, I believe, 237g/km, putting it into the highest tax bracket, but I will avoid the emissions table by taxing my car before July 1st.

My problem is that I believe my Focus will automatically be taxed on my emissions regardless of when I import the car, eg before July. If this is so, I will pay €2,000 road tax every year which is an unbelievable sum of money. Especially when my car will only use the roads three or four days a month. Can you clarify this situation for me.

Until July 1st, you can import any car and still avail of the current VRT system - useful if you intend to buy a car that has high CO2 emissions. To that effect, you will pay a maximum of 30 per cent of the OMSP (Open Market Selling Price) as determined by Revenue and your car will be taxed on the current road tax system, which is based on the cubic capacity of the car, for the lifetime of the vehicle.

If you import the Ford Focus RS before July 1st, you will pay €590 per annum road tax. If you import the car after July 1st, you will pay 36 per cent VRT on the OMSP of the car but as the car was registered in another country before January 1st, 2008, it will be road taxed at the current rate, so it too will be €590 for the lifetime of the vehicle. A look at the Revenue Online Service puts the OMSP of that car at €14,839, so you would expect to pay €4,451 VRT on the car if you imported it now, but probably quite a bit more if you wait until after July 1st to import it.