Ireland car prices accelerate higher despite euro driving down costs

ALTHOUGH the strength of the euro has driven down car prices in Britain, we are still paying some of the highest prices in Europe. According to the latest figures from the internet research site, Eurocarprice.com, Irish car prices have risen 7% faster than the European average over the last five years.

A 1.6 litre Toyota Corolla costs €20,410 here, €5,000 more than in France, €4,350 more than in Germany and €3,892 more than in Britain. Since the EU issued a directive to harmonise car prices, manufacturers generally supply cars at the same price to all dealers. But the Irish tax rate pushes up the selling price substantially.

“I think it is evident that Irish taxes are extremely high in relation to other countries. Irish VAT is higher than each of the other countries and Ireland then applies Vehicle Registration Tax on top of VAT. This is not applied in the other markets,” said Europrice operations director Robin Goodyer said.