Opportunities to save money by buying abroad come and go and even tiny changes in car prices and currencies may prompt some to scurry overseas in search of value.
For the past few years British car buyers travelled to Ireland, Denmark and other parts of Europe, lured by clear savings in markets with cheaper new cars and weaker currencies.
With their business sailing away, dealerships in Britain were forced to reduce the prices of new cars in 2000, Mercedes- Benz leading the way. And with new car prices falling, second-hand prices also took a tumble.
Irish forecourts are full of second-hand cars but still used imports are up 10 per cent on this time last year according to the Revenue Commissioners. And with the euro now 13 per cent stronger and falling residuals, is it worthwhile going to Northern Ireland or England for a cheaper second-hand car?
"The second-hand market is very static at the moment," says David Browne of Coventry University Transport Design School. "Dealerships are offering a lot of sweeteners on new cars. Number plates are on a six-monthly cycle, March and September, so salesmen are anxious to get the new plates out. There is a lot of choice in the second-hand market and prices have levelled off."
The British market has always attracted a number of Irish buyers, generally looking for second-hand cars or classic and vintage models not easily found here. British dealerships would also say that their cars tend to have higher specifications, and are in better condition thanks to better roads and the MOT which long-preceded the NCT.
Northern Ireland is more accessible to us but the larger English market offers much more choice though it also involves more costs. Either way, the buyer has to source the car, travel to take a test drive, hire a mechanic to check it out and comment on its service history, take it home, pay VRT and put it through the NCT.
London-based dealership, Harringtons of Fulham sells up to three cars a week for export to Ireland. Customers from Ireland mainly buy older cars and especially Mercedes E Class saloons and estates according to dealership director Irishman Patrick Moylett. This is consistent with Revenue Commissioners' data which suggests that used cars imported here average about eight years old, with seven in every 10 being six years and over.
Apart from older Mercedes, Moylett says that Irish customers can also find value in some other mid-range used German models, such as Audi Avants and some BMWs. Occasionally, the prices of used Golfs, Polos and Jaguar S-Types may also be attractive to Irish customers, he says.
VRT is payable on all used cars imported here and only the Revenue Commissioners is the final arbiter of this amount. It can provide an estimate in advance but the actual figure is determined when the car is inspected at the local Vehicle Registration Office no later than the day after it comes in. "The chassis number, not the plates is what is important otherwise you could be waiting for a while to have the car registered," says one VRO officer. "The tax can be higher if the car has a lot of optional extras."
Here every imported car is valued based on its mileage, condition and specification and VRT is calculated on this value according to the engine size. The importer must produce the ownership documentation from Britain and pay the VRT to get an Irish registration number.
When VRT is taken into account, Moylett says that there may not be a huge difference between the price of second-hand cars here and in Britain, but argues that the value is often in the condition of the car and the higher specification. So it may very well be down to the type of car you want and the extras that you value.
Harringtons website lists its used stock with prices in Sterling. These prices must be divided by 0.7 (€1 = 70p) to convert to euro at present rates. It has a three-year-old 1.8L Audi TT with 30,000 miles which converts to about €37,500 with VRT. A similar car here retails for about €29,000. Clearly you are better off at home in this case, though with different and slightly older highly-specked models, it may be a closer call. From Harringtons website, a 2001 BMW 330ci Convertible with 18,000 miles translates to an estimated €51,000 with VRT, though this could be slightly higher when the options are taken into account.
For small cars, the decision will rest on the VRT calculation and depending on the specification, this may or may not be prohibitive. The London dealership has a 1999 Renault Clio 1.2L three-door with 33,000 miles and a one-year warranty which comes to some €7,500 with VRT included. Similar models on sale by private individuals on CBG.ie are quoted at €7,000.
But a 2001 Peugeot 206 LX 1.4L three-door hatchback with 15,000 miles on Harringtons website comes to about €12,600 when converted from sterling and with an estimate for VRT included. It has air conditioning and electric windows. From CBG, a model on sale through Arch Motors in Galway with 13,000 miles costs €13,750, JPS Motors has one with 12,500 miles for €12,750 while there's one on private sale with 15,000 miles for €11,000.
With the above examples, it's easy to understand why Irish importers are concentrating on older cars where depreciation has seriously kicked in. If you're not bothered by the age and mileage, the British dealership has a 1994 Mercedes-Benz C220 Sport with 80,000 miles or a 1994 E200 auto estate with 85,000 miles which both convert to €8,500 before VRT. With the VRT estimate, the E200 would come to just in excess of €12,500. It's hard to find equivalents on sale here but as a starting point, a 1996 E200 manual saloon with 79,000 miles is priced at €15,950 by Westland Auto in Liffey Valley.
Harringtons can deliver cars here, register them at the local Vehicle Registration Office and supply the Irish plates for a charge of £250. All of its used cars come with a one-year warranty.
So depending on the "pre-loved" car that you want, it may or may not be worthwhile buying in Britain. The incentive to buy abroad seems to be greatest with older second-hand cars so it's no surprise that used imports are for the most part six years or over.
Some customers may find value in newer highly specked models but especially for those over 1.4L, VRT is the fly in the ointment even before the costs of travel are taken into account. So unless the specification merits it, for the most part newer car prices would need to fall further or the euro need to strengthen again to make them more attractive to Irish buyers. And though the prophets of doom are often wrong, they suggest that neither is likely in the short-term.