What is NOx? How will it affect Irish motorist and what impact will it have on car sales and the motor industry in general? At Peter Hanley Motors we are happy to update you on the full implications of this new motor tax levy and its implications for car sales in particular.
What is NOx?
Here comes the science bit! We are talking Nitrogen Oxide. Although, in fairness, you could be forgiven for thinking that NOx might be short for Noxious. NOx is a term that covers all the gases, or oxides of nitrogen, which are emitted from motor vehicles. These gases have been medically linked to ill health and in particular, respiratory illnesses. It’s not good for the climate either. As an indirect greenhouse gas, it has an adverse effect on the environment due to it being over 300 times more effective than carbon dioxide at trapping heat. This links nitrogen oxide to global warming and with damage to ecosystems that rely on water and land. So, it is pretty noxious indeed. This is the reasoning behind The Nitrogen Oxide Emission Levy that was introduced in Ireland’s Budget 2020. The new tariff will hopefully, contribute to a decrease in NOx emissions. Diesel cars create more NOx gases and this levy replaces the 1% VRT (vehicle road tax) on diesel cars. The NOx tax was applied to all new or imported cars registered from January 2020 and it means an increase in VRT for older imported cars. There is a calculation system based on the cars emissions (link at the end of the blog) and the increase it makes to the cost of importing cars is quite startling. The NOx emissions tax is specifically created to penalise the higher emitting cars which are most often diesels. The higher the NOx levels, the higher the tax. On the upside, there was no change to the CO2 element of emissions for the motor industry in Budget 2020.
What does it mean for car buyers?
For the motorist, is means an extra cost on the registration of all Category A vehicles (passenger cars) excluding electric cars, but including hybrids. Ultimately it will mean a reduction in the choice of vehicles available to purchase, as it will be no longer financially viable to import a large section of the UK cars. Primarily affected will be cars from 2015 and older. This flies in the face of market trends over the past few years when sale of new cars fell in Ireland and a greater amount of cars were imported from the UK to a healthy resale market. Motor dealers liked the imports. There was a source of better value, high spec cars in good condition, and the traditional procedure of importing and paying the VRT was a simple one. But with pressure on Ireland to meet EU emissions targets, and the increased awareness of climate change triggers, this levy had to be introduced. The Motor industry were well prepared to take steps to reduce emissions. In fact the Society of the Irish Motor Industry lobbied the government for action on NOx emissions. For the motor industry it certainly does bring challenges, in that there will be fewer cars available within certain budgets, but overall, the move has been welcomed by the industry. The Irish car buyer can be assured that there will still be enticing cars on the market and they may well come with the feel good factor of fewer emission levels.
“The replacement of the 1% diesel surcharge introduced last year on new cars with a nitrogen oxide (NOx) emissions-based charge to all passenger cars registering for the first time in the State from 1 January 2020 is a welcome announcement. The NOx charge will impact on older higher emitting cars which, unlike last year’s diesel surcharge, will penalise older cars with higher levels of pollutants. The Minister has recognised that newer vehicle technology is cleaner and better for the fleet.”
SIMI Director General Brian Cooke (Society of the Irish Motor Industry)
The Peter Hanley Motors approach to NOx
At Peter Hanley Motors we are unique in that we have a range of cars to suit all budgets. From the first time driver, the family upgrade, to the trade in of a well-loved motor, we can find the car you need. At any one time, we have over 150 cars in stock. In the past, the importation of 2010-2015 cars was a big part of our trade and there is many a happy motorist driving in a Peter Hanley vehicle. The new NOx levy and Brexit (there’s a story for another day!) along with the market changes will provide some adjustments in how we all work. We have already been working hard to source new stock with our priority, as always, for clean cars, with good specs and an excellent car history. There will be as broad a range of cars to suit all budgets and requirements in our forecourts this year. With over thirty years’ experience in the Motor trade we have always embraced each challenge that comes along and in an ever changing market, we remain resilient, adaptable and certain that our loyal customers will find the perfect car for their needs.
There is no doubt that there are some interesting times ahead as the motor industry, motorists and Governing bodies come together to tackle the ongoing problem of controlling emissions while still keeping us all safe and happy on the roads of Ireland. This is something that we at Peter Hanley are fully on board with and will meet all the challenges it brings with smiles on our faces and a large stock of excellent cars in the lot.
Keep an eye out for our future blogs on Hybrid & Electric Cars.
https://www.simi.ie/en/budget-2020
https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/calculating-vrt/calculating-the-nox-charge.aspx
Peter Hanley Motors is a registered
member of The Society of the Irish
Motor Industry
