The great unknown of trade-in values

HELPDESK: Motors editor Michael McAleer answering all your motoring queries.

HELPDESK:Motors editor Michael McAleeranswering all your motoring queries.

From Martin Ryan: Thanks for keeping the public informed in your pages on the VRT changes in July. Following your sample price examples for new BMW prices, I had a look at the new price list.

My question is: where does it leave current BMW owners when it comes to trading in from July 1st? Will the existing road tax regime, based on engine size make one's car less attractive as a trade-in? In addition, will the whole country now be driving BMWs?

The question on trade-in values is the great unknown in the motoring world at present. Even savvy dealers are uncertain as to what is going to happen to residual values when the tax changes come into effect.

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Simply put, it depends on the car in question. Big-engined cars will be punished, so models that work off the old system (ie registered before July 1st) will feature significantly lower road tax and that will make them attractive used buys, thereby supporting their resale prices.

Ironically, more efficient cars with low emissions will suffer somewhat, as buyers may find the new price for these models will be more affordable and so will opt for a new model rather than used. They will also benefit through lower road tax.

Thankfully this will only really impact on cars bought in the past year or so. Cars older than that will have dropped in value to such an extent that the gap between new and used will still be too much for buyers at these prices to opt for a new model.

As to whether everyone will be driving BMWs, their volumes will certainly rise, but I don't think you will hear the company complaining about selling too many cars. I don't expect the 3-Series to outsell the Ford Focus just yet.

From Ashley Godden: I am sure everyone agrees that the new VRT and road tax system is an improvement on the old methodology, but would you agree that it seems to highlight some bizarre anomalies between comparable cars? In particular, in your analysis of the price of automatics last week you show that, for example, the manual version of the Audi A4 has a better fuel consumption rating, but worse CO2 figure, than the BMW 3-Series with both having 2.0-litre diesel engines. Is this an example of carmakers playing the system?

In short, no. Different firms producing different engines of the same size have different priorities. Audi has concentrated on reducing fuel consumption while BMW, perhaps influenced by the CO2-based taxation system in one of its key markets - Britain - has focused attention on emissions. That is particularly the case on engines that are designed for predominantly European cars like the 3-Series.

From BB, Wicklow: My query relates to my brother-in-law who had a car in Paris, France (their main residence). He subsequently brought the car to his holiday home in Spain. Unfortunately, he has passed away. As his wife does not drive, she wishes to sell the car, which is French registered, with French number plates. It is a Volvo, just over 12 years old and is insured to March, 2009.

My condolences on the loss of your brother-in-law.

The first point to note is that the car should have been re-registered in Spain if it was meant to stay there. However, as you just want to sell it on, then it's best to simply get it back to France and sell it there. That way you avoid any complicated paperwork in Spain.

Your next problem is that French inheritance law is devilishly complicated. You need to ensure that the car actually belongs to your sister, and the way French law works, that's not always a given. In the end, I wouldn't be too hopeful of a financial windfall on the back of a 12-year-old Volvo.

From BV: I'm bringing a car in from England and I was wondering if I could perhaps organise a more personal number plate. You can book an upcoming number for a new car, but can you do it for a used import? The car will be a 2005 model.

Yes you can. The same system applies as with new cars and the fee of €315 is the same. Contact the Central Vehicle Office in Rosslare (Tel: 053-9161247; reservereg@revenue.ie).

The only restriction with old registrations for imports is that the number must not already be in use.