HELPDESK:Answering all your motoring queries, with MICHAEL McALEER
From TA: We are considering converting our car to biodiesel in order to reduce costs and also do our bit for the environment. We’ve made initial enquiries and a local mechanic estimates the cost of converting our VW Passat diesel at about €2,500 plus VAT. Is it still a viable option? I remember reading about it some years ago but there has not been much on it lately. Any advice?
The first thing to check is that your diesel engine can actually be converted. Contrary to general pub talk not all diesels – in particular, common-rail versions – are easily converted to run on biodiesels like vegetable oil.
With all such conversions, you also need to factor in the potential cost savings against the cost of the conversion. Rising diesel prices certainly help make the conversion more economically feasible, but if the costs run to €3,000 it will take several thousand miles before it really starts to pay off.
From S O’Dwyer: Motorists rejoice – the removal of the dreaded VRT is but a decade away. Finally, I can see the day a Ferrari will be affordable to the average Irish motorist – even if they can’t afford to go more than 10 feet.
My only problem is that they made such a mess of it last time, when they seemed to have wiped €6,000 off the trade-in value of my car within a matter of weeks that, while it sounds like a brilliant idea, I’m not convinced that I won’t be left paying the cost for any potential change.
I wouldn’t rush to Des Cullens with your chequebook just yet. It’s worth remembering that as official the language, and as warm the welcome from Government, these are all simply proposals that may – or may not – be implemented.
While the 5 cent rise in fuel prices under the carbon tax banner seems like a foregone conclusion in December’s Budget, changing the VRT system may take a little longer.
If they do, then you are perhaps right to be a little concerned. While cutting the cost of motoring seems like a no-brainer, changes to the VRT system introduced last July – from a tax based on engine-size to one focused solely on emissions – left many in the motor industry angry over the poor management of the changeover.
Many car firms placing orders several months in advance of delivery made judgments based on the options listed for consideration by the Government at the end of 2006.
What caused particular ire was the fact that, in the Government’s initial discussion paper on the changes, it stated: “The outcome of a VRT system based solely on CO2 emission levels is too difficult to predict or estimate.” It goes on to state that, because cars create costs beyond those arising from CO2 emissions, “it would be unwise to base the VRT solely on CO2 emissions”. The options it lists “are considered to be broadly revenue neutral, within the order of around 2 per cent of VRT yield”.
In the end, however, the Government opted for a tax based solely on emissions. This time everyone is hoping that whatever decisions are taken, they’ll be clear and well flagged.
Replacing a tax on ownership with one on usage would seem equitable, but it could well reward the Ferrari owners of urban Dublin while severely penalising the poorer rural commuter with a less efficient older car and no option but to get to work.
From E O’D: Is there going to be a scrappage scheme and if so, what sort of incentive might it offer? What cars do they mean when they say low emissions?
Again, these are proposals so there is no requirement for the Government to implement them. While the motor industry is seeking a scrappage scheme in December’s Budget, doubts remains over any benefits in terms of generating tax revenue, which seems like a crucial criteria for the Government. Such schemes can also create a false economy. It is, effectively, State aid for the motor industry and as such opens the door for other industries to demand similar support.
If such a scheme is introduced, many in the industry expect it to be limited to cars with emissions of less than 155g/km. Ironically, that means many modern premium cars will qualify a lot easier than some of the lower-priced volume sellers.