Motor dealers seek extension of scrappage scheme

THE IRISH motor industry is seeking an extension of the car scrappage scheme, as the latest figures show new car sales are up 48 per cent so far this year. The Society of the Irish Motor Industry (Simi) is also seeking changes to the numberplate system to help boost sales.

Eddie Murphy, Simi president, said: “The improvement in new car sales this year has had a very positive impact in terms of consumer sentiment and it would be very damaging if this were to fall back next year. An extension of into the peak buying season in the early part of next year would be hugely beneficial.”

The scrappage scheme is scheduled to end this year.

Last November Simi predicted new car sales for 2010 would top 70,000, with 10,000 due to scrappage scheme sales. “Today we’re already in excess of 75,000 and predict that we’ll sell closer to 85,000 this year,” said Mr Murphy. By the end of July 74,111 new cars were registered, of which 10,472 were through the scrappage scheme.

Murphy said that new car sales up to the end of July had generated €470 million in VAT and VRT, up €70 million on the same period last year.

The industry fears the end of the scrappage scheme could herald a sales slump next year. In markets such as Italy, Spain and France the ending of similar schemes contributed to double-digit drops in new car sales.

Simi is also seeking changes to the current registration system. It attributes the seasonality in new car sales - with 54 per cent taking place in the first quarter and 70 per cent in the first six months of any year - to the prominence of the year of registration on numberplates. It is calling for a discussion with the Garda, local authorities and motorists on changes to the current format.

Alongside a wider review of the numberplate system, Simi is proposing a new scheme be introduced next year allowing buyers of used cars to re-register the vehicle in their home county. Alan Nolan, Simi director general, said: “A fee of up to €250 could be charged for this change, which local authorities could then reinvest back into the local road network.”

He said such a move could generate up to €20 million, based on 10 per cent of the 750,000 annual used car buyers opting to change. Mr Nolan said the new scheme would simply require the National Vehicle and Driver File to be updated in the same way that the re-registration of imported cars is handled. The previous registration would remain on the vehicle’s file.