BUYING A CAR FROM THE UK, WHAT ARE THE RISKS?

QI’m thinking of importing a car from the UK. What are the pitfalls?

AThere has been a 43% increase in the number of cars being imported from the UK following Britain’s decision to leave the EU, with 7,571 cars imported in November 2016 alone.

However, the Automobile Association warned buyers to take extra precautions to avoid a raft of potential potholes.

During one recent AA inspection of an imported car, it was revealed that the vehicle had previously suffered severe damage as a result of a collision and during repairs the Vehicle Identification Number (VIN) had been removed.

Without this the owner was unable to get a Vehicle Registration Tax (VRT) certificate. In order for the vehicle to be VRT-compliant, a return to the UK to have the car inspected by authorities and a separate garage would be required, meaning that any savings the customer made by importing the car will have been lost.

‘While the savings when purchasing a car are enticing, particularly at this time of year, it’s important to know the risks,’ Conor Faughnan, AA Director of Consumer Affairs warned.

‘In an event where past repairs were not declared at the time of purchase, motorists who opt to import could wind up spending far more on repairs to get the car on the road than they would have originally saved.’

AA engineers are also advising potential buyers to ensure the car matches their expectations before they purchase.

UK imports tend, for example, to suffer from a higher level of under-body corrosion due to the widespread practice of salting roads there.

Clocking – or tampering with – the mileage displayed by the car, is another problem that’s more likely to occur in a UK-import than an Irish vehicle.

A 2011 report from the AA found that 11% of UK imports had had their mileage doctored, proportionally more than here.

‘Many people will be surprised to hear that modern cars are more easily clocked than they were years ago,’ said Conor Faughnan.

‘Clocking is a major safety concern as a vehicle with more mileage than indicated may not have been serviced as necessary meaning breakdowns become more likely.’

QCan I get the new Help To Buy grant for building my own home? If so how do we claim it?

AYes, you can claim it if you’re a firsttime buyer who self-builds a new residential property between 1 January 2017 and 31 December 2019.

The Revenue’s online application system for the Help to Buy (HTB) incentive came onstream in the new year. The HTB incentive provides for a refund of income tax and Dirt tax paid over the previous four tax years, to first-time buyers who purchase or self-build a new house or apartment to live in as their home.

But, of course, you have to have paid the tax in order to reclaim 5% of the property value up to a maximum €20,000. The refund will be paid to the mortgage institution.

You must take out a mortgage of at least 70% of the value of the property to qualify and then live in it for the first five years after buying or building it.

There are two stages to Revenue’s HTB online process – an application stage and a claim stage.

Applicants also need to go through the Revenue’s online system, which can take several days to set up.

If you’re self-employed, you go through ROS (Revenue Online Services); if on PAYE, you can apply through myAccount.

You must confirm the contract has been signed and deposit fully paid and enter the property’s details (a copy of the signed contract must also be uploaded).

Once the claim is submitted, the details will need to be verified by the developer/ contractor in the case of a new build or a solicitor, acting on your behalf, in the case of a self-build, before the refund will be paid.

A full guide to the Help To Buy grant can be found on Revenue.ie.