Competition results in varying prices

Michael McAleer answers all your motoring queries

Michael McAleeranswers all your motoring queries

From PG, Dublin: Is there any realistic guide to used car prices on the Irish market?

I’ve been offered wildly different prices for my used Honda Accord, all of which are significantly lower than the prices that appear for similar-aged models in classified ads in newspapers and online.

The end result is that I’m not prepared to accept the prices on offer, I’ve lost faith in the honesty and openness of the sales process and in return I’m not going to buy a new car. I doubt I am alone in this. The car industry is doing itself no favours.

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I can understand your frustration but you should remember that, while it’s not perfect, it does show some form of open market competition in action.

Prices are fluctuating wildly because different dealers have different financial requirements at the time. Some may be prepared to offer a little more on the basis that they know of a potential buyer, while others will effectively use a low trade-in valuation because they believe they will not be able to turn your car into cash in the short or medium term.

The financial turmoil in all retail markets means that list prices for new cars simply don’t reflect the reality of deals being offered on the markets at present.

Therefore any advertised used cars reflect the opening offer from sellers, rather than what they are likely to get for a particular car.

What you refer to as a lack of openness is actually a good thing, in that the difference in prices shows competition at work. If there was a common price for a particular car and all dealers offered a similar price, it could suggest collusion in the market.

The current sales environment does require the buyer/seller to shop around and work on the real-life offers they are given.

However, as we always advise, getting the best out of the car market is not about getting a good trade-in or a big discount on your new purchase, it’s all about the cost of change.

You may take a hit on the trade-in value, but you can equally expect to drive a hard bargain on the car you are buying. The net between the two is what’s important – and if you were to compare that with a few years ago, I think you’ll find there has never been a better time to make the change.

From D O’Driscoll: I’ve been told recently that airbags have a lifespan of six or seven years. Is that true? Does that mean I would need to get them replaced when my car reaches that age? It seems to me that you wouldn’t know they don’t work until it’s too late. Is this change covered by the car’s warranty or is it the customer who pays? Is it something an owner could consider doing themselves?

Airbags generally have a lifespan of 10-15 years, not six or seven. Many cars also have an airbag alert system that will signal to you via a warning light in the instrument panel when there is a fault with the system. That’s when you should bring the car in to a garage to get the airbags checked.

Generally, unless the fault is caused by something other than simple age, the manufacturer will not foot the bill for replacement, no more than they would for any other part of the engine that needs replacing after 10 years of service. I would strongly advise against attempting to tinker with the airbag system yourself.

From FC, Cork: Due to changes in our family circumstances, I want to park up our car and leave it off the road for several months. What is the situation with motor tax if I do so? Do I still have to pay it even if I’m not using the car?

No. You can claim a refund on the current tax paid if there are at least three months left on the tax disc. Enquire at your local motor tax office for form RF120.

If the car is being parked up because of a family illness or absence from the State, then you’ll need to accompany the form with a letter from your doctor or employer. If it’s simply as a method to reduce household costs, you may be required to get a letter from the local Garda station, stating that they are aware of the car being off the road and not in a public place.

You are not allowed to drive it while it is without motor tax.