Mileage Depreciation in VRT Calculations
How high mileage can reduce your VRT bill in Ireland
Mileage Depreciation Calculator
Calculate how mileage affects your VRT with our interactive tool.
How Mileage Really Affects Your VRT
Here's the truth about mileage and VRT - it's more nuanced than most people think. While high mileage can definitely reduce your VRT bill, it's not automatic, and Revenue doesn't just knock off money because your odometer shows six figures.
The Revenue Perspective
Revenue looks at mileage as one factor among many when determining a vehicle's market value. A 3-year-old car with 150,000 miles is clearly worth less than the same car with 30,000 miles. But the key word here is "excessive" mileage.
What Counts as Excessive?
Generally, anything significantly above 12,000-15,000 miles per year starts to impact value. A 5-year-old car with 120,000 miles? That's getting into excessive territory.
Mileage Depreciation Guidelines
Revenue doesn't publish exact mileage depreciation rates like they do for age, but trade sources and experience give us a pretty good idea of how mileage affects vehicle values.
| Annual Mileage | Category | Typical Depreciation | Notes |
|---|---|---|---|
| Under 10,000 | Low | No adjustment | May actually increase value |
| 10,000 - 15,000 | Average | Standard rates apply | Normal wear and tear |
| 15,000 - 25,000 | High | 5-10% reduction | Above average usage |
| 25,000 - 40,000 | Very High | 10-20% reduction | Commercial use likely |
| Over 40,000 | Excessive | 20%+ reduction | Significant impact on value |
It's About Total Mileage Too
A 2-year-old car with 80,000 miles will get more depreciation than a 6-year-old car with the same mileage. Age and mileage work together to determine value.
Proving Your Mileage to Revenue
Required Documentation
You can't just write down a mileage figure and expect Revenue to accept it. They want proof, and they're getting better at detecting mileage fraud.
- Service Records: Regular service stamps showing mileage progression
- MOT/NCT History: Annual test certificates with recorded mileage
- Insurance Documents: Policies often record mileage estimates
- Lease Documents: If previously leased, mileage restrictions and final readings
- Auction Records: Professional valuations with mileage
Digital Verification
Modern cars store mileage data in multiple systems. Revenue can request:
- ECU mileage readings
- Manufacturer service history
- Connected car data (for newer vehicles)
- Previous country registration records
Mileage Fraud is Serious
Clocking a car (reducing the displayed mileage) before import is fraud. Revenue prosecutes, and you'll pay penalties plus the full VRT amount.
Real World Mileage Scenarios
Scenario 1: The Company Car
Vehicle: 2020 BMW 520d, OMSP €35,000
Mileage: 145,000 miles (4 years old)
Assessment: Clearly excessive for age - likely 15-20% depreciation
VRT Impact: Could save €1,000-€2,000 depending on CO₂ band
Scenario 2: The Weekend Car
Vehicle: 2019 Porsche 911, OMSP €85,000
Mileage: 15,000 miles (5 years old)
Assessment: Very low mileage might increase value
VRT Impact: Standard age depreciation, no mileage penalty
Scenario 3: The Delivery Van
Vehicle: 2021 Ford Transit, OMSP €28,000
Mileage: 180,000 miles (3 years old)
Assessment: Extreme mileage for commercial vehicle
VRT Impact: Significant depreciation, 25%+ reduction possible
Common Mileage Mistakes to Avoid
Conversion Errors
If you're importing from a country that uses kilometers, make sure you convert correctly. 100,000 km is about 62,000 miles - a big difference when Revenue is assessing value.
Assuming All High Mileage Gets Depreciation
Highway miles are different from city miles. A car that's done 100,000 motorway miles might be in better condition than one that's done 50,000 stop-start city miles.
Not Factoring in Vehicle Type
Luxury cars suffer more from high mileage than commercial vehicles. A high-mileage Bentley loses value faster than a high-mileage Ford Transit.
Don't Assume Automatic Reductions
High mileage doesn't automatically reduce VRT. Revenue considers it alongside age, condition, and market factors. Sometimes the standard OMSP already accounts for typical mileage.