Where are the cheap cars, asks minister
Wednesday 28th January 2009, 2:58PM GMT.
THE Treasury Minister is calling on garages to explain why Islanders do not appear to be getting credit crisis bargains on the forecourt.
Senator Philip Ozouf (pictured) said that he wanted to know why Islanders did not seem to be benefiting from falling car prices in the UK. And he wants proof that the scrapping of VRD last summer has resulted in any savings being passed on to buyers. VRD was charged on vehicles according to engine size when they were first registered in the Island.
The minister explained that cuts in duty on goods such as petrol, cigarettes and alcohol had often not resulted in a corresponding drop in prices at the till. However, he said that he had no evidence that was happening in the car trade, but wanted to be reassured that retailers were not simply pocketing any savings.
‘I am signalling that I don’t understand, when looking at the latest RPI figures, why car purchase prices did not appear to have declined as much as they had in the UK,’ said Senator Ozouf. ‘I have simply posed the question of what is going on.’
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A friend of mine has just bought a brand new Range Rover Vogue which i admit is perhaps not the best car for an island the size of Jersey. Anyway he bought it from a Uk dealer and was £12,000 yes twelve thousand pounds cheaper than a local garage!!! Car dealers in Jersey and greedy con merchants. My advise by your car from a UK dealer they are more interested in your business and giving you the best price.
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1.) The first answer is quite simple… people are still paying the prices asked minus a little haggling. Supply and demand Philip…
2.) Second reason – people cannot be bothered with the supposed hassle of importing a car even though this should not be to difficult if you can find a UK garage that runs the Personal export scheme as this should allow any car exported to either EU or outside of UK to be VAT free, even more savings.
The costs are obviously transporting the car and any associated local registration fees but as the car should have cost significantly less and you saved VAT, I cannot see how it would be more expensive.
I spotted a car which was reduced to £19,999 in Jersey and in the UK after shopping around I found the same car for £14,999 take off the VAT etc and add in applicable costs and you should be around £13,500-14,000 which saves you £6,000-6,499…..
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Prices might not be falling but there are so many advertised for so long – that tells its own story
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What about petrol?
In the US prices have come down from $3.50 a gallon to $1.75. 50% less.
Why not the same here?
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Having just bought a new car from the local dealer I paid the UK list price less VAT a discount for haggling a nominal fee for delivery and 3% GST. All in all i was happy with the deal. Having said that it was not from one of Tom Scotts Franchises!
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There are quite a few cars in the second hand market that look like they are reluctant sales. Very low mileage Porsches etc that may have been bought and garaged to be bought out for special occasions, weekend spins etc and they are now being sold as part of an economy drive.
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I will shortly be replacing my aging car with a 3-4 year old used car but will certainly go to the UK to purchase. The choice is much wider and prices significantly cheaper, local dealers want too much profit from a sale. In the UK car supermarkets are happy to make a few hundred pounds and shift large volumes.
Does anyone buy anything locally anymore – I bought an LCD TV for £680 that is for sale today in the JEC for £1499. I’m happy to support local businesses and pay a premium but not double!
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We do not live in the UK we live in Jersey and I believe we need to support our own local car dealers and other retail outlets.
D Smedley, you seem suprised that cars costs less in the UK than in Jersey, is this not the case with all our shopping? Your comment on car dealers all being “Greedy Con Merchants” is pathetic and, if you cannot afford to live in Jersey I suggest you move to the UK and pay UK taxes.
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Having purchased three secondhand cars from the UK in the last eight years, I am happy with the assistance provided by DVS, which makes it a simple process, I will never purchase another car in Jersey, pity I can’t get my petrol imported – it’s cheaper!!!!!
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Big, big, discounts are available from franchised UK garages desperate to sell. If you were in the UK you would check out several garages selling the same vehicle, so why is Jersey any different? Competition is possible! You can do it from the comfort of you home online. Most big named cars have a list with pictures of cars available at all their outlets nationwide.
Transport costs mean taking a flight, driving it back and on to the ferry – this shouldn’t cost you anymore than the differential between a Jersey dealers delivery charge and a UK one.
If the car is new, ex demo, or ex dealer owned, and sometimes older second hand, VAT will be deducted prior to invoice by the garage under HMRC notice 705 (and notice 705A) which advises garages that “the personal export scheme allows you to supply entitled customers free of VAT outside of the European community”.
It’s a piece of cake for the UK garage – only one additional form, VAT form 410 – in their books they insert “zero-rate” in the VAT rate column of their stock book and “Nil” in the VAT due column, and include a cross-reference to the serial number of the VAT 410 form. Simple!
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who wants one anyway?
park your new car in a public car park and find dents in the doors from people opening their door onto your car and scratching the bumpers as they glance off you bumper turning.
doing your own import is not a hard as you think.
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US retail petrol prices have a much lower tax element than European retail petrol prices.
So when the price of a barrel of oil doubles US petrol prices rise faster and higher in percentage terms than Jersey and UK prices, similarly their prices fall faster and by a bigger percentage compared with us with the price of oil falls.
The same applies to cigarettes, the Jersey Exchequer has about 66% of the retail price of every pack sold and the percentage is rising.
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HSB – you cannot be serious, support our local car dealers, at what cost?
I know from experience that they would typically make a profit of £2000 on a £5000 car not to mention the mark up on the car you trade in. In the UK this profit margin would be nearer a few hundred pounds.
Buy in the UK and let them wake up or sink I say.
It’s not that we can’t afford to live in Jersey – rather that we have an IQ in double figures and won’t pay exhorbitant prices for prodcts available much cheaper across the water.
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Keiran,
I also have inside knowledge on car sales being married to a car sales man.
My point is that everything is cheaper in the UK why pick on car dealerships! Have banks lowered their charges? has the CooP lowered its food prices? No! Your point on profits on some cars is correct and some people do buy cars at high prices, but 99% of the time cars, especailly used cars, have a few of hundred pound across them max and sales men get around 10% commission on the profit of a car which is not alot.
Cars with a high profit margins incude finance commission, I say finance houses need to their lower rates.
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Looks like he isn’t getting to grips with the real issues yet again.
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Im quite clued up on cars and am amused by the wide boy Arthur Daley types employed by some of these establishments.Some of them dont know a spark plug from a selenoid and tell me the car in question has all these things that i know for a fact dont even exist on the car due to my thorough research.
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Having recently travelled to Jersey for a job interview wihin the motor trade,I was struck by the monopoly that one particular group controls over the people of Jersey.The impression that I got was one of total arrogance with the attitude that it was a captive market,and the consumer could be treated however the dealer deemed appropriate.I have over 20 years experience and felt disgusted at the way customers were treated ,dealers in the UK would not survive with this attitude.Jersey people deserve much better !.
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All the people with any sense buy from the UK.
There are honest garages over here but not many, and few car dealers selling at a fair price.
They will even say “you have to pay more than the book price in Jersey” when you try to buy.
Too many garages having to make a living from too few cars is no excuse.
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Simple answer… supply and demand Philip, whilst people in Jersey pay the asking pice minus a what they think is a discount then the garages will continue charging these prices.
Personally I’d go to the UK and buy a new car for 10-20% less then get the VAT knocked off (Personal export scheme) and pay the relevant fees to import to Jersey saving approx. £4-5,000..
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It’s not like anyone in Jersey can afford to buy a new car with all the taxes and charges and yay i may have to now work until im 100. what a great place to live….
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Why do we need even more cars in the Island? It’s only 9 x 5 miles for goodness sake…
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I asume Philip is looking for a new car ?
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Jersey stig says!:if the salesman is modest and down to earth wears a Casio and seems blessed with a tad of humility your probably ok.
But if your salesman is “suave” and wears a stripey shirt and a Rolex you know someone else has paid for it.Other signs to watch out for are overpowering aftershave that drowns out your own wifes perfume and anyone who has any resemblance to Quentin Tarantino or Del Boy.
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15 – isn’t it a solenoid? and has anyone bought in France? I know that they drive on the wrong side but a right hand drive vehicle would be handy for all those old people and taxi drivers on Victoria Avenue that move into the overtaking lane as soon as they hit the dual carriageway.
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I am in agreement with Philip at last someone is looking for the big discounts we are supposed to be getting from the downturn when will Jersey get into line with the rest of the market before they have to ship all the cars back to the supplier!
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isnt it strange whatever the argument you always get the ‘there is always a boat in the morning’ from someone (HSB post
just exactly how much over the odds am I supposed to pay to support local businesses?
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i used to work for a car dealership …….our salesmen were making thousands in commission and leaving it up to us in the aftersales to pick up the pieces.
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Oh the boat in the morning is too expensive too !!
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We have recently moved to the island and previous to our arrival we sold our new Jeep, then went to two local UK Ford dealers and was quoted a price for a Fiesta.It was not a great deal so we left it untill we were here. Then a quick trip to La Motte and we got a better trim car at £2000 cheaper than the UK.Petrol is cheaper,15p ltr, no road tax,up to £400 a year, no MOT,£56 a year plus the repair bill,cheaper insurance.If the MOT was introduced here most of your cars would be off the road. Trust me, I am a qualified motor technician.Is it so bad ?
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I have to agree with DD (28.) It is amazing how everyone complains so much. We have it good here in Jersey as far as motoring is concerned. Introducing MOT’s to the Island would be a good idea, some of the wrecks out there should be taken off the road. Do we have to wait for a wreck to plough into a group of children before anything is done about them?
I wanted a certain Audi. Having extensively researched all options and using ‘What Car’ on-line valuations tool, I finally bought a Audi from Tony Cottle for £4,000 below market value. I agree that an awful lot of cars on sale here are overpriced, but if you look around and do your homework, you can find some bargains. If not, buy elsewhere. Simple.
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It is solenoid. But it doesn’t really matter.
The boat in the morning phrase is soooooo old. The fact is that people born and raised in Jersey should never be made to feel that they have to leave. If you’re born here it’s your island, period! And I say that as someone who has only just moved here.
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boat in the morning…yadayadayada yawn yawn yawn. That’s always the response given when an intelligent arguement cannot be recipricated.
As for complaining, isn’t this is a forum where the sole intention is for people to enter debate and voice opinions. Disagreeing with someone, something or a system should not be seen as just moaning or complaining, it is expressing ones views and thoughts.
So please, to those select few, stop moaning and complaining about people moaning and complaining!
If everyone agreed with each other what a boring existence we’d all have.
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I think that most people in Jersey would be prepared to pay a small “premium” because of extra transport costs, and I also agree that residents should support local business.But I agree with “stig” that there seems to be a widespread element on the island of “flash” salesmen and managers who think that they can offer poor customer service because they think that they have a captive market. If people are paying that little bit extra is it wrong to expect a better customer experience ?
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When you trade in a car in Jersey its valued at UK trade price minus VAT. When you see it on sale about a week later, it’s selling price is well above similar cars in the UK. The best bargains in UK cars are ex demos or pre-regs where you can get the VAT deducted. You can even buy makes such as Mercs and BMW’s at around 2/3rds the new price charged in Jersey. Anyone buying from a Jersey dealer is crazy.
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Regarding being able to buy cheaper cars in the UK, do the cars imported into Jersey still have a factory warranty?
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Dave is correct,I have seen the Mercedes Direct Advert in the UK and I know people who have saved thousands of pounds. They have a site in Caterham Surey and thats not far from the island. I bet they will probably manage VAT free and delivery.
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Dear Philip, keep your cool and go on line. Really simple.
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Roy, all major manufacturers usually have warranties which allow you to go to ANY dealership who must under the terms of the franchise honour this. Always worth checking this though before you buy.
Once more people buy from the UK, the market will self balance and local prices will come down to reflect the deals available a short hop away. Either that or continue to line the pockets of the dealers.
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I know, lets just close down all the shops/garages/retail outlets in Jersey cos lets be honest everything is cheaper online, and then we won’t have to worry about redundancies as there will be no shops to close, we can go round to friends houses over christmas and do our xmas shopping with them but in the warm! People try and realise that everything costs more here, our labour is more, our rents are more and there are less of us so there are no economies to be gained by selling cheap. if you don’t like it i am sure tehre is a ferry leaving daily!
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to HSB, I have to laugh at your point at supporting local businesses. I try to do this where possible, always buying fresh food from the farm shops etc etc…. However, do you not think that some local businesses should give something back and consider the local community, ie car prices reduced, landlords stop ripping people off through pure greed…
Its not a point of ‘if you can’t afford to live in Jersey’, its about why should we sit back and accept it. It is always said that its a price to pay to live in such a nice place but businesses really do exploit this knowing that they very rarely get any comeback.
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I think its completely insane that people in Jersey are bothered about whether they can get cheap cars, such as Lamborginis, Rolls Royces, 4 by 4′s, and other embarrasingly vain cars -that suck petrol like Drakula in a blood donor clinic.
Jersey has the oppurtunity to be a leader in the world in terms of eco-friendly travel. The island is so small nobody really needs cars, and those that do should by law be forced to purchase eco-friendly cars only.
I live on the inner road, and every single car that passes in the ‘morning run’ is occupied by one single generally overweight person, who could have walked or got the bus. driving to work is not economical, it is wear and tear on the car, petrol, and parking fees – all for what so they feel like they have made something of themselves? So they can drive their Porsche to work and say I have made it in life, look at me, look at my possesions?
selfishness, greed, stupidity and vanity in the extreme!
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I bought on E Bay and saved £2500 on a car that cost £5,000 (easy maths). Most cars on E Bay are from dealers and it’s easy to check it out anyway (£10). I certainly won’t be paying for local dealers to rip me off so they can feel better. See potato, milk scandals , same thing
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It’s a global market now chaps, where ever you live. Local businesses can still compete in any location by providing top notch service at a reasonable price level – but not at rip off prices. Where local businesses fold due to greed and a failure to get commercial, new opportunities will arise for others to fill the gap with a sensible price structure. Any business, not just car dealers, who take the proverbial will not last in the brave new world, but, be sure, others will.
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