The threat of Brexit has resulted in a substantial drop in the value of Sterling Vs the Euro. In the past 12 months this has helped to make importing a car from the UK into Ireland even more affordable than usual.
The UK has a bigger choice of used cars than here in Ireland – usually with better specs and it’s close enough to keep transport costs fairly low.
In the first 6 months of 2019 – the number of imported private cars licensed increased by 2.8% compared with the same period in 2018. There were 51,694 imported cars licenced compared to 77,639 new cars. Almost 40% of all new car registrations in Ireland were on imported cars.
A recent study from UCD’s Michael Smurfit graduate business school and the Marketing Institute of Ireland predicted that UK car imports will climb to 105,000 this year while new car sales will fall to 104,000.
Prices of cars in Northern Ireland are generally more expensive than those in England /Wales – but the ease of access and reduced transport costs from Northern Ireland sometimes make it the best option.
The savings to be made on a UK import will vary alongside the euro sterling exchange rate – so a stronger Euro or weaker Pound will result in even bigger savings.
Getting the Best Exchange Rate:
Many people just ignore the importance that currency exchange rates, fees and commissions have on the final price of their UK car import and simply let their bank take care of the currency exchange. If you do this you are guaranteed to lose a few hundred euro.
Banks don’t all use a set exchange rate – they usually add a profit margin of 2% to 5 %. But there are other places you can use to convert your currency.
Payment Alternatives to your Bank :
Currency Fair is an Irish online currency exchange service regulated by the Central Bank of Ireland. You can lodge Euros with a debit card or bank transfer. If you use them, they say you could save as much as £250 on a £10,000 transfer to the UK compared to using one of the main banks.
First Ten transfers for free using this link
Fexco is based in Ireland, with operations in 29 countries worldwide. They can offer car buyers more competitive exchange rates than the main banks. You can quickly request a quote online on their dedicated page for Irish UK car imports. Once a figure has been agreed – you transfer the Euros to Fexco and the seller will receive the Sterling into their account. (Same day if necessary)
Fexco has been around since 1981 and is regulated by the Central Bank of Ireland, and by the Financial Conduct Authority for the conduct of payment business in the UK.
Read more about other options for paying for a car in the UK.
There can be big financial savings when importing a used car from the UK.
A price comparison published in 2014 on Completecar.ie found that savings of between €1800 and €8900 could be made when buying a used car in the UK instead of buying a very similar one here in Ireland. The comparison included the VRT and also included €900 in “extra costs” such as transport, checks and travel.
Brexit and UK Car Imports
Currently, VAT only has to be paid on used UK car imports if the imported car is less than 6 months old or has done less than 6000 km. But a “No Deal” Brexit could result in price increases on UK used car imports to Ireland
A no-deal Brexit would result in VAT having to be charged on all UK used car imports – which could increase prices by as much as 23%. It is likely that customs duty of 10% would also apply.
So – if you are thinking of buying a used car from the UK – you might want to try and do it sooner rather than later.
If you buy a vehicle in the UK but do not have a UK address you will need to take the full vehicle log book (V5C) from the seller (not just the new keeper’s slip) .Do not buy a UK used car without a logbook (V5C).
VRT: When importing a car into Ireland – buyers need to be aware that VRT (Vehicle Registration Tax) also has to be paid The VRT is calculated on the Revenue’s assessment of the car’s “open market selling price ” (OMPS) in Ireland rather than its UK price. VRT is calculated as a percentage of the OMPS – with lower CO2 emission cars having a lower rate of VRT. The lowest rate of VRT is 14% .
You can get an estimate of the VRT to be paid on an imported car here
Note: VAT currently only have to be paid on EU imports if the imported car is less than 6 months old or has done less than 6000 km.