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While considering purchasing a new car, we all look for different things. Maybe you have a houseful of children. Maybe you’re on a tight budget or wish to look into alternatives to the classic petrol or diesel vehicles. Regardless of what you’re looking for in a new (or new-to-you) vehicle, quality, safety and value for money are definites for all new purchases.
Budget 2021
With the announcement of Budget 2021, those considering a new car may have to make further considerations. Motorists were among the most heavily hit with the new budget; with the carbon tax increasing by an extra €7.50/t. This will have an impact on the price of diesel and petrol, and will also affect vehicle registration tax (VRT) and motor tax for many drivers.
In the Government’s effort to encourage Irish consumers to buy lower-emission vehicles, owners of electric vehicles, conventional hybrids and plug-ins will also be charged significantly less VRT than owners of high-emission vehicles (like SUVs). To more accurately measure emission levels in cars, Ireland will switch to a new system called Worldwide Harmonised Light Vehicle Test Procedure (WLTP). Minister for Finance Pascal Donohue has said this new system “will be based on emissions performance levels which are much closer to real-world performance levels than is currently the case”.
For motor tax, there will be no change in vehicles made before 2008; they are already taxed based on engine size. In post-2008 vehicles, there may be changes based on the new emissions guidelines; possibly costing up to €50 more per year for high emissions vehicles.
Help to go electric
Tom Halpin is head of communications of the SEAI. He says the affordability of electric vehicles is still at a higher purchase price than petrol and diesel vehicles, but it’s important not to solely base the purchase on the initial figure. “Cost savings over the lifespan of the car should also be taken into account,” he explains. “Savings can be made of up to 80% on fuel costs annually by switching to electric vehicles. Maintenance costs are lower than other vehicles due to the fact that there are fewer moving parts in an electric vehicle. Taking into account the incentives and savings over the lifespan of the vehicle, they can come in at approximately the same level or even below when thinking about total cost of ownership.”
Available SEAI grants include the Electric Car Grant of up to €5,000 towards the purchase of a new electric or plug-in hybrid car (with VRT relief of up to €5,000 for new, fully electric cars until end 2021), the Home Charger Grant of up to €600 towards the purchase and installation of an electric car home charger unit and the Low Motor Tax Grant, where one receives the lowest rate of motor tax (€120 per annum for full electric cars and approximately €170 for plug-in hybrids; you can learn more online at www.drivingelectric.ie).
Feasibility
This sounds promising, but Irish Country Living asks: are electric cars really cut out for rural Irish life?
“Electric vehicles are becoming more affordable and suitable for families living in rural Ireland,” Tom says. “With battery technology advancing at a fast rate, the battery size of fully electric vehicles is increasing, which equates to larger ranges.
“The range of most electric vehicles available now sits in the region of 300-450km per charge, with some models hitting the 500km mark and above.”
The key to reducing our emissions will be in the renewal of the national fleet with new (or newer) cars
In response to the new motoring budgetary measures, director general of the Society of the Irish Motor Industry (SIMI) Brian Cooke says, for some, certain technologies may not currently be a suitable option and the transition to zero-emissions vehicles will take time.
“We will require a blended fleet of diesel, petrol, hybrid, plug-in hybrid and electric vehicles as we make this transition,” he says.
“The key to reducing our emissions will be in the renewal of the national fleet with new (or newer) cars.
“We will require Government investment in the infrastructure throughout the country to support the transition to zero emissions.”
Brian says, when considering the purchase of a new or new-to-you vehicle, the best advice he can offer is to do plenty of advance research, shop locally for the best deal and, preferably, buy from a SIMI-registered dealer.
“Buying a car from a [registered dealership] means you will be covered by consumer protection laws, while if you buy privately you are not afforded the same protection.”
Consumers should conduct their own car history and financial check on a potential new purchase if the dealer or seller is not providing this service – to do this, a quick Google search will provide several options for online services.
“When you find the car you are looking for, you should ask the dealer for the service history of the vehicle (if it’s a used car) and determine the type of warranty available,” Brian says. “The length of warranty on a new vehicle is generally determined by the manufacturer, while a used car can be negotiated at the time of the sale.”
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