Buying a car with finance and moving from UK to Ireland

[BuddyLove25]

Hi All,

Bit of an interesting one - my wife and I have just welcomed a new child to the world recently and are very quickly realising that despite being London based, a car would make the world of difference for visits to family and day trips out. We are looking at buying a newer car for better reliability and safety ratings, however are considering moving to Ireland at some point in the future.

I have toyed with getting something at a lower value, buying for cash (budget £8k) and replacing once we make the move. However, given the higher costs of purchase in Ireland it would make sense for us to buy here. Further, there are relief options if you bring across after 6 months ownership where I understand there is exemption from any import duties.

Does anyone have any experience in financing a car in the UK and moving abroad to the EU? Conscious Ireland is in the common travel area and hence it may be slightly easier, but looking for a provider who would be provide finance despite an international move and not demanding full payment when we transfer.

Appreciate many will comment that we should live within our means and buy for cash, but just wanted to explore the options!

Thanks in advance.

Edited by BuddyLove25 on Friday 13th February 14:14

[TrevorHill]

You will be liable for VRT and VAT on the car once you move to Ireland. On top of that everything is a lot more expensive in Ireland.

[BuddyLove25]

TrevorHill said:

You will be liable for VRT and VAT on the car once you move to Ireland. On top of that everything is a lot more expensive in Ireland.

Thanks for this - appreciate there are VRT and VAT considerations. However I understand that should the car be owned for more than 6 months in the UK prior to moving across and is not sold for more than 12 months after moving, the car can be considered exempt from VRT. Similar story with VAT (know this from a friend who has done this previously).

Was more a question as to whether it could be done with a car under a UK finance agreement.

[maz8062]

I doubt it. If you stopped making payments, how could the financing company retrieve the car? Which jurisdiction would rule over it? If you took the car to another country permamnently it could be construed as theft without seeking their permission.

[paul_c123]

BuddyLove25 said:

Thanks for this - appreciate there are VRT and VAT considerations. However I understand that should the car be owned for more than 6 months in the UK prior to moving across and is not sold for more than 12 months after moving, the car can be considered exempt from VRT. Similar story with VAT (know this from a friend who has done this previously).

Was more a question as to whether it could be done with a car under a UK finance agreement.

Generally speaking no, it will be in the T&Cs that the car cannot leave the UK except with their permission (eg for short holiday breaks). You need a form from them and it could be checked by customs at the border. You would never be able to reregister the car yourself which might or might not be an issue once settled in Ireland (and WILL be eventually, when you come to sell etc). And whilst you could accrue a debt in the UK due to the outstanding finance or
non-return of the car, it is relatively easy to pursue debts cross-border these days.

[Blue_star]

If you get unsecured loan you can do whatever you want with the car once you have bought it. You just need to keep inline banking open so you can pay off your loan once you have moved to ireland

I only sold my car when I moved to UK because I couldnt deal with administration and it was lhd so I didnt want to risk it.

£8k cash is what you have right now, correct? Why dont you just get something for £8k and put aside £300 for the car payment in savings? Then once you move you will know if you like the car enough to keep.

I think new cars should be similar price with currency conversion. I think once you look at up to 5 year cars you might have better deal in UK to Ireland.

Edited by Blue_star on Saturday 14th February 05:36

[Mandat]

paul_c123 said:

Generally speaking no, it will be in the T&Cs that the car cannot leave the UK except with their permission (eg for short holiday breaks). You need a form from them and it could be checked by customs at the border. You would never be able to reregister the car yourself which might or might not be an issue once settled in Ireland (and WILL be eventually, when you come to sell etc).

You're thinking about a leased car, where you would require a V103 certificate, which is issued by the lease company. The V103 certificate is used in lieu of the V5 document, which is kept by the lease company as they are the RK.

For a car bought on regular finance (HP or PCP) then you are the RK and the V5 is in your name, meaning that you can drive the car abroad without any permissions required from the finance company.

Obviously, permanently exporting the car to Ireland is most likely require the finance to be settled, however, if the OP keeps making payments until the finance is settled, how likely is it that the finance company will find out?

Edited by Mandat on Friday 13th February 21:49

[Blue_star]

They would not. But insurance and number plates stay with the uk, right?

[TrevorHill]

Blue_star said:

They would not. But insurance and number plates stay with the uk, right?

Technically the car needs to be registered in Ireland within thirty days. It’s a non starter in my book.

Wait until the OP sees the price of cars in Ireland