Ongoing issues with the VRT changes

HELPDESK: Michael McAleer answering all your motoring queries.

HELPDESK: Michael McAleeranswering all your motoring queries.

From P Talty: I have been looking into BlueMotion with a view to replacing our two Volkswagens: a Golf TDI and a Touran TDI.

I sent a query to VW Ireland requesting information as to when BlueMotion will be available. I received a response that it would be 2009 but no further details.

Do you have any more information?

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VW Ireland say they will not be introducing BlueMotion versions before January 2009. That means for the short-term at least the German brand will miss out on the benefits these cars would reap due to the tax changes in July.

It's a pity, because VW in Germany is now offering BlueMotion versions of the Polo, Golf and Passat, but none of these are on sale here.

From July 1st the current Polo BlueMotion, on sale in Britain, would qualify for a 14 per cent VRT rate, along with the Golf version that has an emissions level of 119g/km.

That means an annual road tax figure for both of just €100.

The Passat BlueMotion has a CO2 figure of 136g/km, and so would have a VRT rate of 16 per cent and an annual road tax bill of €150.

In terms of your current cars, while you may well be hit by further depreciation on the cars during the interim, until we know the new prices for these BlueMotion models - and VW's prices overall from July 1st - it's hard to give definitive advice. Best bet is to wait for now.

From MQ: You will be aware that the Revenue Commissioners allow a rebate of up to €9,525 for registered disabled drivers to help with the purchase of reliable adapted cars every two years.

I am a beneficiary under this scheme, but I am worried about the new situation that will pertain after July 1st. I need a car with a large cabin in order to make entry easy and I need an automatic gearbox.

I understand that a VRT penalty is to be introduced to make automatic cars less attractive purchases from July 1st.

A second problem for disabled drivers like me is that there is a 2-litre limit to engine size above which volume the concession is not available.

Very few diesel engines are available which match this requirement and provide sufficient cabin space for the comfort of those without easy movement.

Both of these factors combined will curtail significantly the choice of vehicle that a disabled driver can make in the future.

Sadly it seems that no one considered changing the system for disabled drivers provisions, so while the rebate will remain under the new tax system, the engine limit of 2-litres also stays in place.

The VRT changes are not meant to punish the drivers of automatic cars, but it is a fact that with most cars, an automatic option is less efficient than manual and so has higher CO2 emissions.

That will push up the price of these cars from July 1st.

Similarly, while there are some quality small diesel engines starting to come to market, the choice remains rather limited when looking under 2-litres.

It would seem sensible for the Government to at least replace the engine limit with a CO2-based system.

Cynics may suggest that those who crafted our new tax system simply didn't consider the disabled drivers when drawing up the scheme.

In a recent review of the new Lexus GS450h we questioned how the premium Japanese car firm managed to reduce the price so significantly.

Lexus has responded by explaining in detail the reduction in standard specification that permitted such a price reduction. Where the previous hybrid came with items such as the polished wooden steering wheel, adaptive cruise control and ventilated seats as standard, they are now optional extras. Therefore while the previous version started at €85,000, the new version starts at €74,610.

The introduction of the lower specification model is timely as the Government removes the 50 per cent Vehicle Registration Tax (VRT) rebate on hybrid models from July 1st.

Currently the new GS450h benefits from a €11,944 price reduction because of the rebate. Cars bought after July 1st will instead get a fixed €2,500 rebate for hybrid cars. However, due to the changes in specification, the post-July 1st price of the new GS450h is unlikely to be higher than the previous version.