In six weeks the way in which we buy cars in Ireland will change dramatically. Paddy Comynlooks at the cars which will jump in price and why you should buy them now
THE UNCERTAINTY over the new vehicle registration tax (VRT) laws in July has caused something of a paralysis among car buyers in Ireland. New car sales have dropped significantly compared to 2007, and used cars are sitting idle on dealer forecourts. However, in the midst of all this, Irish buyers might just be missing out on their last chance to be a bit naughty. Because once Band G becomes a reality, large SUVs, luxury saloons and high-end performance cars will become even harder to justify.
The highest VRT rate used to be 30 per cent and this covered quite a large number of cars, namely any over 2.0-litre. The highest road tax you would pay would be €1,491 per annum. However, from July 1st the highest rate of VRT will be 36 per cent, applied to cars that produce 226g/km og CO2 or over and these cars will be subject to an eye-watering €2,000 per annum road tax. That's an increase in road tax of €509 at the top end and several thousand extra on the purchase price.
While potential owners of cars from Porsche, Aston Martin and Ferrari are unlikely to get too upset by the prospect of their cars increasing in price in July - and paying €2,000 per annum road tax might even become something of a status symbol - the same might not be true for anyone who likes their performance cars fast and Japanese.
The Subaru Impreza WRX, Mazda RX-8 and Nissan 350Z all jump to the highest VRT and road tax band, Band G, so they will become much more expensive to buy and run. Subaru's range is particularly badly hit, with Impreza, Forester, Legacy, and Tribeca models increasing in price from between €890-€6,745, so their showrooms should be as busy in June as they ever will be.
The rotary-engined Mazda RX-8 in particular is a great buy, but time is running out if you want to get a new one at the best possible price. The 25 per cent VRT the car enjoyed and €530 per annum road tax charged because it was classified as 1755cc, even though its cubic capacity is just 1308cc won't last long. All this will change in July with 36 per cent VRT and €2,000 road tax. If ever there was a car to buy now, this is it.
Hot hatchbacks are likely to go up in price too, as by their nature they are usually petrol engined models that have to work pretty hard. Now is a good time to buy a Mazda3 MPS or Opel Astra OPC before they too take a jump in price.
The same is true if you plan on buying a premium hybrid or a larger flexi-fuel vehicle. Hurry to your Lexus showroom if you were planning on buying a hybrid Lexus GS450h, RX400h or LS600h.
In just six weeks time you could end up paying thousands more as a long-standing 50 per cent rebate in VRT for hybrids is capped at €2,500 from July 1st. That means that you could save around €8,000-€9,000 off the RX400h and GS450h.
Hurry also if you plan on buying cars such as the Volvo V70 and S80 flexifuel and Saab 9-5 biopower which run on E85 bioethanol, standard petrol or any blend of the two.
Buy a Volvo V70 flexifuel now, and you will save €6,437 compared to July 1st, and there are significant savings too on their C30, S40, V50 and S80 flexifuel models.
Any of the larger SUVs, despite the fact that they are - for the most part - run with diesel engines, will see their rate of VRT increase to 36 per cent. Models like the Audi Q7, BMW X5, Land Rover Discovery, Range Rover and Range Rover Sport, Kia Sorento, Mercedes-Benz ML and Toyota Land Cruiser are all going to reside in the dreaded Band G, commanding an increase in VRT of 6 per cent and that €2,000 per year road tax burden. If you plan on buying a new one, then the clock really is ticking.
Simply put, any car that is poor on fuel and CO2 emissions is going to increase in price, be it a performance saloon like a BMW M3, which we can see from this week's roadtest will increase in price by over €8,000 overnight, or a large SUV. Now is a really good time to shop around, and customer-hungry dealers are likely to offer fantastic deals on these more expensive, higher CO2 vehicles as they will be tougher to sell after July.
So while you might incur the wrath of your environmentally-conscious neighbours and it might seem bizarre to register a car in May or June, do so now if you want to save a packet on your non-green machine.