Will Scrappage Scheme be extended?

trowel

I have a car 10 yrs+ and was thinking of buying a new car in the near future.
I heard a rumour that the scrappage scheme was to be extended into 2011 - it would make sense for me to wait in that case...
Does anyone know anything more, or is it just a rumour...?

L1011

We won't know until the budget. At that point you'll not be able to order a 2010 car, only buy whatever random stuff the distributors have around.

bazz26

Upto a couple of months ago the signs were that it could be extended but going by the drips of information we are being fed over the last few weeks regarding the country's finances and upcoming budget it is most likely that it will not.

Nobody will know for sure until 7th Decemeber. Giving the current discount from the Government scrapage scheme plus the manufacturer's discount I'd buy now. The value you loose at the end of the year in depreciation will be offset by the scrapage discount or the risk of paying full retail on the car from Jan 1st.

Atlantic Dawn

2000 and 2001 were two of the best years on record for car sales in Ireland, it would make sense to extend it until the end of next year but they will likely see the scheme as a cost compared to no scheme being available instead of the benefits it brings in sales.

crosstownk

trowel wrote: »

I heard a rumour that the scrappage scheme was to be extended into 2011

Nobody can give you the answer to this (except Brian Lenihan) until Budget Day.

If the answer is 'nay' then we may see an increase in December registrations.

Cookie_Monster

scheme hardly costs though, even with a 1500 VRT reduction the VRT and VAT on a new car is still huge. Add to the the PAYE, PRSI and Levies on dealer staff still employed because of it and it really is a no brainer IMO. How much will it cost the gov to have x amount of dealer staff laid off and on the dole because no-one wants a car next year without the offers scrappage generates?

BrianD3

If it isn't extended then it may not make a big difference as long as the distributors continue giving their big discounts.

For some popular cars the gov scrappage allowance is way less than 1500 quid. Eg for the Renault Clio 1.2, of the 5000 euro discount available, only 320 quid is gov. scrappage.

Anecdotally there is plenty of demand for NCT'd, 10 year old cars so owners of these who want to buy a new car might do nearly as well selling them privately without availing of the gov scrappage deal, then doing a straight deal for their new car.

-Chris-

BrianD3 wrote: »

For some popular cars the gov scrappage allowance is way less than 1500 quid. Eg for the Renault Clio 1.2, of the 5000 euro discount available, only 320 quid is gov. scrappage.

How does that work?

dak

As far as I am aware the Renault scrapage finished 30/09/2010.

VolvoMan

-Chris- wrote: »

How does that work?

As scrappage is based on a VRT reduction (and VRT is now based on Co2 emissions); cars like the Clio emit so little that they are only liable for that amount to be paid.

Cookie_Monster

VolvoMan wrote: »

As scrappage is based on a VRT reduction (and VRT is now based on Co2 emissions); cars like the Clio emit so little that they are only liable for that amount to be paid.

14% is the lowest though. So that means @ 320+1500 the car is selling for 13k inc VAT. so 13k =121.5% so VAT = 2300


VRT + VAT- VRT rebate = 320+2300-1500= more in than out still.

Thats right isn't it?

BrianD3

Cookie_Monster wrote: »

14% is the lowest though. So that means @ 320+1500 the car is selling for 13k inc VAT. so 13k =121.5% so VAT = 2300


VRT + VAT- VRT rebate = 320+2300-1500= more in than out still.

Thats right isn't it?

That's about right but the petrol Clio is a flexi fuel car which AFAIK means it gets a VRT rebate of 2500 - leaving only about another 320 for the scrappage rebate.

Plug

If they do extend it they will save hundreds of jobs I think.

catbear

I don't think so plug, I believe the scrapage scheme only kicked the can down the road. Like housing there is now thanks to the past era of easy credit plenty of good quality NCTd second hand stock out there to compete with new cars.

Jonny303

I personally can't see it being extended, at the end of the day, its pumping the majority of the money into other economys rather than our own. As much as I'd like it to stay (owner of a multi-franchise) I really think the December will be the end of it

Cionád

I heard an ad on the radio Renault taking orders for 2011 for the Clio at 8,990. Extending the scrappage on that model at least, no matter what the government do.

That said, I think the vrt rebate on that particular model was only 300 euro or so...

RedorDead

Makes complete sense to retain it. Its a no brainer considering it is self financing. Also -it has given car sales an added impetus this year - sales are up by a lot more than the scrappage amount - ie scrappage has removed most of the stigma of having a 2010 reg plate - unlike the 2009 plate.

I saw figures recently showing that when all scrappage costs have been taken into account - payouts and lower vat takes etc etc - the extra revenue is so great that the government has taken 36 million euro extra tax revenue (first off taxation - vat and vrt and not road tax) versus the same period last year. To weigh it up:

Plus:-+ Extra government revenue
+ Job protection for (most) motor sector staff
+ Costs government €0 to run and implement
+ Good news story in the budget - and lets face it - it looks like we will need them.
+ Helps drive average co2 emissions down as the percentage of tax band A and B cars as a % of overall sales continues to increase.

Minus:-- Sends monies out of Ireland?
- It will screw up residual values of those big discounters that added 3000 and 3500 to the government 1500. - Renualt/Fiat/Opel etc - but i suppose thats there fault really.
- Struggling to find anymore minus points really?