Buying a new car in Ireland

Information

Generally, all new cars and cars that are imported into Ireland are subject to Vehicle Registration Tax (VRT) and must be registered with the Revenue Commissioners. If you are buying a new car or are importing a car into Ireland from abroad, you will need to do three things before you can drive your car:

• Pay Vehicle Registration Tax (VRT)
• Have motor insurance
• Pay motor tax

All motorists are required to carry a valid driving licence with them at all times when driving. Further information is available in our documents on learner driving permits and full driving licences.

Vehicle labelling

Since July 2008 a labelling system has been introduced which allows consumers to compare the carbon (CO2) emissions of new cars. The first section of the label shows the seven emission bands and identifies the band for the particular vehicle to which a label is attached. The second section of the label provides three important points of information for consumers:

• the rate of VRT payable on the vehicle,
• the annual motor tax payable
• the amount of fuel required to run the vehicle over 18,000 kilometres

The third section of the label supplements the information provided in the first and second sections, and introduces the importance of driving behaviour. The remaining sections of the label provide essential information on the actual vehicle to which it is attached, including make, model, engine capacity, transmission, fuel type and consumption.

Vehicle Registration Tax

Every new car in Ireland is liable for Vehicle Registration Tax, which is payable when the car is first registered. This is a legal requirement and any delay in registering your car or paying the tax may lead to substantial penalties.

Imported cars must also be registered. To register an imported car, you must book an appointment at an NCTS centre to have the car examined and to pay the VRT. See our document on importing a car.

Buying from a car dealer

If you buy your new car from a dealer (car showrooms, etc.), then it is the dealer's responsibility to register the vehicle and pay the tax before giving it to you. The price of the vehicle should include the cost of the VRT. Your vehicle will be supplied to you with its registration plates already fitted.

Once the vehicle has been registered and the VRT paid, you (or your motor dealer) will receive:

• A receipt for the VRT paid showing the registration number assigned to your car.
• A Form RF 100 for use when you are applying for road tax.

Vehicle registration plates

Vehicle registration plates showing the assigned registration number must be displayed on your car within 3 days of the date of registration. If you buy your car from a dealer, it will have its registration plates fitted by the time you take possession of it. If you buy the car privately, you will need to get registration plates - most motor dealers make these to order.

Vehicle registration certificate

The vehicle registration certificate for your car is issued by the Department of Transport, Tourism and Sport. This will be posted out to you after you have applied to your local motor tax office to pay motor tax on your vehicle.

Motor Insurance

It is a legal requirement in Ireland to have motor insurance if you want to drive your car in a public place. Read more about the requirement for motor insurance here.

Motor Tax

Motor tax in Ireland is a charge imposed by the Irish Government on motor vehicles. Revenue from motor tax is used to maintain and upgrade the road network. The charge for motor tax for a new car is based on the car's CO2 emissions and on engine size for other vehicles. Some vehicles are exempt. Read more about the requirement for motor tax here.

Tax reliefs and exemptions

There are different reliefs and exemptions from VRT and further information is available from your local Revenue tax office. Relief is also available for;

• certain disabled drivers
• Visitors to Ireland who have owned their vehicles abroad for more than 6 months and who will be resident here temporarily
• People who have owned their vehicles abroad for more than 6 months and who are moving permanently to Ireland
• People posted to Ireland as part of the diplomatic corps

NOTE: If you are moving to Ireland and are among those exempt from paying VRT you cannot sell your vehicle for more than 12 months after the vehicle is registered. If you are required to pay VRT, then you can sell your vehicle here in Ireland when you wish, once it has been registered. Further information is available from your local Revenue tax office.

Electric cars

There is an exemption from VRT for series production electric vehicles until 31 December 2013.

From January 2011 until December 2012, a grant scheme is available for battery-powered electric vehicles (BEV) and plug-in hybrids meeting specific standards. The grants are as follows:

• €5,000 for BEVs costing €20,000 or more
• €2,000 to €4,500 for BEVs costing less than €20,000
• €2,500 for hybrids costing €18,000 or more

Further information on the grant scheme is available on the website of the Sustainable Energy Authority of Ireland (SEAI).

Car scrappage scheme

A car scrappage scheme was introduced from January to December 2010. Under the scheme VRT relief of up to €1,500 was provided where a car of 10 years or older was scrapped and a new car of CO2 emissions bands A or B purchased. The scheme was extended for the period January 2011 to June 2011 with reduced VRT relief of up to €1,250.

Being scrapped meant that the old car has been taken to an official End of Life Vehicles (ELV) authorised treatment facility and a Certificate of Destruction issued by the facility in respect of the car.