Finance Minister Brian Lenihan gave the Irish motor industry a shot in the arm last week, when he introduced a scrappage scheme on cars 10 years or older.
In what has been termed a “slash and burn” Budget, the Minister unveiled a limited scrappage scheme. It will see motorists who trade in their 10 year old cars or older, for a new car in the VRT bands A and B (i.e. with CO2 emissions of 140g/km or less ), receive tax relief of up to €1,500 in accordance with certain criteria.
Interestingly, of the 57,100 odd new cars sold so far this year, about 66 per cent had emissions that would qualify under the scheme.
The scheme has received a warm reception from the motor industry, and is seen as welcome measure to protect jobs in the sector in 2010.
The Society of the Irish Motor Industry (SIMI ) estimates the increase in sales here will be between 10,000 and 20,000 new cars. New car sales will end the year under 58,000, down well over 60 per cent on last year.
Of the approximate 150,000 + cars on the road that could qualify for this discount, it is difficult to put an educated estimate on how many will end up availing of the scheme.
The previous scrappage scheme which was in operation from July 1995 until the end of 1997, accounted for sales of up to 35,000 new cars sales.
It will be introduced with effect from January 1, to run until 31 December 2010.
* Must have been registered in the State in the name of the purchaser of the new car for at least 18 months previous to the date of scrappage
* Must be 10 years old or more from the date of first registration
* Must be scrapped after 9 December 2009
* Must be scrapped within 60 days of the date of the new car being registered, or have been scrapped within the previous 60 days of the date of the new car being registered, provided the date of scrappage is after 9 December 2009
* Must have a valid NCT certificate of roadworthiness, or one that has expired no more than 90 days prior to issue of the Certificate of Destruction; or documentation to indicate that it has been presented for and failed an NCT roadworthiness test in the previous 6 months
* Must have been insured for use on the road for at least 12 months in the 18 months prior to the issue of the Certificate of Destruction
The definition of being ‘scrapped' means that the old car has been taken to an official End of Life Vehicles (ELV ) authorised treatment facility and a Certificate of Destruction is issued by the facility in respect of the car.