The threat of Brexit 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 to Ireland even more affordable than usual. The Pound is still providing quite good value for Irish car buyers. (See latest exchange rate news Here) . The Covid-19 crisis has made personal imports of UK cars more difficult because of travel restrictions – but it is still possible.
As well as better prices – the UK has a bigger choice of used cars than here in Ireland. Many cars have better specs and it’s close enough to keep transport costs fairly low. (Especially if you are buying in Northern Ireland)
In 2019 – the number of imported private cars licensed here was 108,895 an increase of 9.5% on 2018 . There were only 113,305 new cars registered so almost 49% of all new car registrations in Ireland in 2019 were on imported cars.
The 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.
Getting the Best Exchange Rate:
The savings to be made when buying a car in the UK and bringing it back to Ireland will vary alongside the euro sterling exchange rate. A stronger Euro or weaker Pound will result in even bigger savings. The weakness of Sterling seems to be a significant driver of UK car imports – with 95% of all used car imports originating in the UK.
Many people just ignore the effect that currency exchange rates, fees and commissions have on the final price of their UK car import. The easy option might seem to be to let your bank take care of the currency exchange. If you do this you are guaranteed to lose a few hundred euro.The Banks don’t all use a “standard” rate – it will vary depending on the amount involved and they usually add a profit margin of 2% to 5 %. But there are other places you can use to convert your currency.
Alternatives to your Bank for Currency Transfer
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 usually offer car buyers better exchange rates than the main banks. You can quickly request a quote online on their dedicated page for Irish UK car imports.
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 details about other options for paying for a car in the UK.
There can be fairly big financial savings when importing a used car from the UK. Obviously – on more expensive cars you will have bigger savings.
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.
VAT and UK Car Imports
Currently, VAT only has to be paid on privately imported used UK car imports if the imported car is less than 6 months old or has done less than 6000 km.
Brexit and Private Car Imports From the UK (Not NI)
Importing cars from th UK to ireland after Brexit will not be as simple. Brexit will probably result in price increases on UK used car imports to Ireland
A no-deal Brexit could result in VAT having to be charged on UK used car imports – which could increase prices by as much as 23%.
It is also likely that customs duty (10% to 16%) will also apply.
A customs declaration will also be required and you will need to pay a customs clearance broker to process the import. This fee could be in the region of €150 to €200 . A customs officer is required to view the vehicle and payment of duty and VAT must be made at the port. (This is the current process for importing non-EU Japanese used imports.)
For vehicle registration, the documents required will be slightly different. The current V5C, or UK logbook, may no longer be recognised for Irish registration as it is not an EU member document. Instead, a certificate of permanent export from the UK DVLA may be required. Again this is not yet confirmed.
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 there is a no-deal Brexit it may well result in further falls in the Pound. This would push down used car values, making them even cheaper again from an Irish perspective.
Brexit and Car Imports from Northern Ireland
A new unique trading position has been agreed for NI which remains within both the EU and UK territories.
If a used vehicle is being imported from Northern Ireland into the Republic after Jan 2021,
- import duty will NOT apply
- No VAT will be charged.
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
Top Tip : 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).