Q: If I am thinking of buying a new car, how will the new VRT system affect me before or after July?

A: VRT will change to a CO2 basis from July 1st 2008. This may mean either:

• A substantial decrease in VRT
• A small decrease in VRT
• A small increase in VRT
• A substantial increase in VRT

(One would expect to see these VRT changes reflected in the end price of a new car)

Q: So, should I buy now or in July?

A: It depends on a number of factors. See scenarios below:

1. I want to buy a new car without a trade-in. The new car I want to buy is going to have a big decrease in VRT in July. In this case, it should be worth waiting until July but it would be a good idea to shop around now to ensure that you can order the model you want for delivery in July. Some vehicles can take some time to be produced and delivered to the dealership.

2. I want to buy a new car and I have my old car to trade-in. A number of factors should be considered here:

• Whether the VRT on new model you are buying is going to increase or decrease; or
• The value of the trade-in car could be affected by:
  A: whether the VRT on a new version of your trade-in is increasing or decreasing as your trade-in's value is likely to change by a related figure; or
  B: whether or not the dealer has a shortage or a build-up of used cars of this type which may reduce or increase the value of your trade-in.

3. I want to buy a new car that is only reducing marginally in VRT in July. You may be better buying now; even with no trade-in as there may be some price changes before July (you should research this with the car dealerships and shop around to see what is best for you)

4. I want to buy a new car that will have a substantial decrease in VRT in July and I have my old car to trade-in.

On the surface, it would appear that waiting is a good idea but do the research now to make sure. There may or may not be a benefit in waiting until July due to the issues mentioned previously (you should shop around now and research this with the car dealerships).

5. I want to buy a new car and the VRT is only marginally changing in July. You may be better buying now as price changes and trade-in values could also have a significant affect. Shop around to find out.

6. I want to buy a new car and it is going to increase in VRT in July. You are likely to be much better buying now. Shop around to find out.

7. I want to buy a new car but not until after July. You should research this now with the car dealerships and shop around in order to get the best deal available and to secure availability of the particular model you want.

Q: How do I know whether the new car I want to buy is going to have an increase or a decrease in VRT in July?

A: This will depend on the engine size (cc) of the car on which the current VRT is based and the CO2 Emissions level on which the new VRT will be based after 1st July. You can check the current VRT and the new CO2 based VRT rates with our Road Tax and VRT calculator, log on to www.simi.ie. You will also need to check the CO2 emissions level for your chosen car by clicking the link, 'SIMI CO2 Guide' on the SIMI website.

Q: I am thinking of buying a new hybrid electric or flexible fuel car, how will the new VRT system affect me after July?

A: Currently there is a 50% VRT rebate for hybrid, electric and flexible fuel vehicles. This will expire on the 30th June 2008. After the revised VRT scheme based on CO2 emissions will be implemented. From 1st July 2008, the relief for hybrid, electric and flexible fuel vehicles will be adjusted to provide a relief of up to €2,500 on the VRT payable, in addition to the benefit of the new VRT CO2 emission related system.

Q: Why is it important for me to shop around now?

A: Between now and July a person has the best of both worlds. Select the best deal at this stage or after July. It is very important to shop around now to ensure that you can take advantage of the best deal available.

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