The Irish Mitsubishi FTO Owners Club

As I understand it, the Revenue largely base used car OMSP on rates defined by the SIMI. Does anyone heppen to know at what stage in the year the SIMI release updated OMSP values? Subsequantly, how long does it take the Revenue to adopt these new rates?

CJ

Think there's a topic on boards.ie on this at the moment.

It's all in a mess by the way

I know they change them at the turn of the year, not sure whether they step them down throughout the year though.

In my limited experience (pre emissions based VRT), the price seemed to be revised on a monthly basis, with small declines (normally) month on month, with more significant drops at the start of january and July (6 month cycle). That said sometimes the price goes up as well. At present it seems that revenue OMSP's are completely out of touch with actual OMSP's. The government shot themselves in the foot with the penal VRT rates combined with excessive OMSP valuations. I'd say the revenue stream from VRT (new and used cars) has fallen off a cliff. A well, at least the planet is being saved

Mustang wrote:In my limited experience (pre emissions based VRT), the price seemed to be revised on a monthly basis, with small declines (normally) month on month, with more significant drops at the start of january and July (6 month cycle).

I've noticed similar trends, I believe that the SIMI supplied values are taken as the benchmark for a lot of marques and is amended during the rest of the year as the Revenue see fit.

Was listening to Newstalk on the way in this morning, the Irish sales director from Google was on talking about last months Irish Internet search trends, apparently 'vrt cars northern ireland' was way up there, go figure.

CJ

I was looking at RX8's in the UK the other day. The VRT basically equated to the purchase price of the vehicle FFS Now I hate VRT as much as the next person, however I do acccept it as a necessary evil, but the price in question was just too high, and the OMSP on which it was based was also too high.
As with the income levy and the VAT rate, the government have no concept of lower the rate => increase the volume =>increase the income.
The attitude is increase the rate and joe public (fool that he is) will just keep paying it Unluckily for them and us it just doesn't work that way.

Mustang wrote:The VRT basically equated to the purchase price of the vehicle FFS

Or in some cases, more...
http://www.fto-ireland.com/forum/phpBB2/viewtopic.php?t=8727

There will always be differences between the values of certain cars in particular markets. If you can get a car cheap enough in the UK through a combination of a deflated market and a good exchange rate, then you are bound to have a high VRT price relative to what you actually pay for the car in the UK.
The main problem with OMSPs is that they are based on figures supplied by the SIMI, which in turn are based on sales figures by garages. It doesn't take into account the lengths dealers have to go to to sell these cars, and the relatively high trade-in prices they have to give to sell the car out at that price, the problem of the used car being overpriced is passed on down the chain to the trade-in, and the cycle continues.