LONDON: Brexit has had a dramatic effect on UK car imports into Ireland, according to TransferMate Global Payments, a currency exchange specialist based in Kilkenny who says that they have been dealing with an influx of activity in the car import market since the vote on June 23. TransferMate has revealed that with sterling now 21% weaker than the same time last year, a family in the South will save over €3,000 on a 2015 Volkswagen Passat compared to the same time last year and even more on a higher end marque.
Barry Dowling, co-counder of Irish Global FX Provider explained: ‘Our trade experts have seen a 60% increase in car transactions since Brexit compared to the same time last year, which isn’t surprising given the dramatic drop off in the value of sterling’. However, the currency experts are advising those considering buying from Britain, that it is vital to ensure they have done their homework on the car. The key considerations to look out for before purchasing a car are whether or there is outstanding finance due on the car; previous damage; if it’s a stolen vehicle; if the car has clocked mileage; vehicle identity.
Barry said: ‘A quick motor check online will ensure that there has been no major accident reported hiding potential damage and most importantly that there is no finance owed. ‘Once that is done, the next step is a trip over to see the car and ensure that you have actually seen it physically. A mistake Irish buyers often make is to simply rely on a photo and that is taking on unnecessary risk’.
TransferMate advise buyers to visit car dealers early in the morning and once they are satisfied with the car, to then organise a same day payment to the car dealer. TransferMate use local bank accounts in Ireland where buyers transfer payment to but most importantly also bank accounts in the UK to ensure same day payment. Barry said: ‘More often than not, Irish banks would apply high transfer fees for same day payments. However, because we don’t do this we can save people over 70% on the transfer fee but between lower fees and better exchange rates. We’ve ran some costings and we’ve found that an Irish buyer will save on average €700 on a £20,000 car payment’.
TransferMate say that how it works is that all new cars sold in Ireland will have Vehicle registration Tax (VRT) included in the price. All cars imported into Ireland are also subject to VRT which will have to be paid to the Revenue Commissioners. However, although you will have to pay VRT on a UK import, the real saving is made when importing a second hand model as you will be paying VRT on the OMSP (Open Market Selling Price) which will be reduced.
