Deals on wheels: How to save thousands by buying a car in Northern Ireland

I bought my first car off a man who kept chickens and half-dressed toddlers running around in the front garden with his various disused cars.

Despite a distinct air of Del Boy and Trotter's Independent Traders about the place, I didn't think twice about buying that Peugeot – at least until I got home and relatives started bemoaning the fact that I hadn't kicked more tyres before making my purchase. They also wondered why I hadn't secured a warranty or asked for €50 "luck money".

Such was my fervour to get on the road, I hadn’t really considered any of that. Fast forward several years to January 2018 when I needed to put my motoring career on a more secure footing by getting a more grown-up car.

With a budget of €10,000 set, car loan approval in the back pocket and the mechanic brother in the back seat, I headed up to Enniskillen in search of a four-year-old Volkswagen Golf – something I could never have afforded to buy in the Republic.

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Even by the time I had paid the VRT and brought the car home, I had managed to make a saving of about €2,000 compared to what much the same car would have cost me in the Republic.

"It's better value for several reasons," explains Dean Corey, from Oliver Corey Garages in Cookstown, Co Tyrone. "One is the exchange rate; two is that the operating costs are lot lower in the North, so dealers can take a smaller margin compared to what dealers have to take in the South.

“We sold a 2018 BMW 5 series to a customer recently and I think they saved about €6,500 on that car, and they have an extra year’s warranty on it. That’s another important factor – cars in the UK have three years’ manufacturer’s warranty, whereas in the South they have two,” Corey adds.

Figures compiled recently show Irish car buyers are travelling North in their droves to realise these savings, particularly as the Brexit process drives sterling weaker.

But how easy is it to buy and import a car from Northern Ireland? Here are a few things to consider before you lay down your cash – based on my own experience.

1. Shop around

If you are going to take out a car loan, shop around for the best value and ask about the impact early repayment might have on the interest charged. If you are a student, make sure to avail of those special rates. Do not jump at offers of quick cash approved in hours. It could make more sense in the long term, for example, to wait a couple of months to save up the deposit required for a credit union loan if it is offered at a lower interest rate. Also, consider the impact a car loan might have on any application for a mortgage, as it will be seen as another required outgoing.

2. Set your budget

Decide on your budget and stick to it. There will always be newer, better spec cars you could buy with just another €500, but this means less money for VRT, tax and insurance – all of which need to be paid within weeks of buying the car.

3. Choose the car that suits your needs

Decide on what make, model and year car you want to buy so that you can compare prices more easily. Ask your local mechanic for advice on what make might suit your needs. I’m not just talking about the colour here, either. Making a decision on diesel versus petrol versus hybrid or electric, 1.2 litre versus 2 litre and five-seater versus seven-seater are all dependent on your own needs.

4. Calculate the VRT

Once you have decided on these details, you can look up how much the Vehicle Registration Tax will cost by using Revenue’s online calculator. You need to be quite specific with the engine details here, so it might be best to consult an ad for a model you are looking at.

5. Do the online research

Spend some time (it took me about a month) looking at used car sales websites. I found Done Deal, usedcarsni.com and autotrader.co.uk most useful for giving me a broad overview of what was available for what price. You should also email main dealers in the South, the North and the UK to see what they can offer you within your budget. From my experience, smaller, independent dealers offer better prices, but this obviously comes with more risk. The business's Facebook page is useful for checking reviews, and you should ask around at work and in your community for any recommended dealers.

6. Consider a local importer

Another option you should consider is buying from an independent dealer in the South who is selling imported vehicles and passing on similar savings to what you could get in the North. Many independent dealers will source, buy and import the type of car you are looking for if you ask them.

7. Bring expert back-up along

Try to bring someone who knows about engines with you when you travel, and arrange a couple of viewings in one day if you are going up North. If you are serious about buying something, check the car history on a site such as Motorcheck or Cartell to be sure there is no outstanding finance on it. You should also ask for full details of the car’s service history, as well as the MOT certificate. Try to haggle as substantial a warranty as possible, and get this commitment in writing. The dealer might require a deposit to secure the sale if you don’t pay in full on the day, but make sure to get a receipt detailing the final cost if you do this.

8. Sort out the paperwork

Once you have bought the car and brought it home, there are a few jobs you need to get done relatively quickly. In order to pay the VRT and get your new plates, you must book an appointment with the National Car Testing Service (ncts.ie) within seven days of your car's arrival into the Republic of Ireland. The registration process must be complete within 30 days of your arrival. Once you've paid the VRT, you will get your new registration number and plates. If the car is more than four years old, you must then apply for a National Car Test (NCT) immediately, and you should also pay your motor tax. If you were previously insured on a different car, you need to ring your insurer to inform them of the change in vehicle. This may incur an extra charge, especially if the engine size is bigger.

9. Raise a toast

Finally, kick back, crack open a drink and revel in all the debt you’ve just committed to for something which is guaranteed to lose money for you.

What kind of savings are out there?

1. Lexus IS300, 2016

This high-end Lexus hybrid is a fine example of the advances being made in the design of economically efficient cars. At the time of writing, this 2016 model was being sold by a car dealer on the Naas Road in Dublin for €29,950. However, when we looked North to Charles Hurst in Lisburn, Co Antrim, we saw the exact same model with less milage selling for £22,695 – or €26,174. The VRT for this would be €2,202, meaning you could make a saving of €1,574.

2. Volkswagen Passat, 2016

We saw this 1.6-litre diesel Passat being sold by a dealer in Longford for €18,450. It was a dark silver colour and had 104,600km (65,000 miles) on the clock. A same model, in white, was being sold by Car Sales NI in Omagh, Co Tyrone for £11,400 - or €13,133. With 65,000 miles on the clock, the VRT comes in at €2,576, making the total cost €15,709 – some €2,741 cheaper than the one in Longford.