The VRT makes up a significant part of the price that you are quoted at your motor dealers. This VRT is a tax applied by the Revenue Commissioners based on what is called the Open Market Selling Price (OMSP) of the car.

Your local car dealers will pay the VRT tax when you complete the deal for your new car and then you have to arrange your annual road tax with your local authority. The rate of road tax will also be changing from July 1st.

At this stage and before the new tax rates are applied, the changes mean that it is important to examine a new car offer before the July 1st deadline. The car of your choice may go up or down in price following this date.

The Society of the Irish Motor Industry (SIMI) has produced a simple question and answer booklet on the implications of the changes in the VRT and Road Tax rates. This provides some additional information for car buyers in order that you can make an informed decision in good time.

Toyota is encouraging Avensis buyers to look at their 1.6 litre petrol engine value in advance of the VRT changes. Toyota claims that buyers can save up to €1,600 on Avensis and €730 on Auris Petrol models.