The announcement of the Irish Car Scrappage Scheme has certainly generated a lot of interest from both the industry and the buying public. The opportunity to purchase a new car and save €1,500 doesn't come along often, and now that the dust is starting to settle on the Government's budget speech I thought it would be useful to take a look at the 'fine print' that usually goes with these incentives.
Scrappage Scheme: Benefits for Buyers, But Conditions Apply
There's no doubt that scrappage schemes can offer the buyer a rare opportunity to purchase a new car with a government discount, so it's important to understand any special terms and conditions that may be the difference between your car qualifying as 'Scrap' or remaining on the road for the foreseeable future. Here is a concise overview of the main conditions of the Irish Government's 2009 Car Scrappage Scheme:
General Conditions of the Irish Car Scrappage Scheme
- Duration: The Car Scrappage Scheme will run from 1 January 2010 to 31 December 2010.
- Relief Available: VRT relief of up to €1,500 will be available to qualifying purchasers of new vehicles.
- Qualifying New Cars: The VRT relief will be provided where a new Category A car is purchased which is emission classified in Bands A or B (i.e. with CO2 emissions of 140g/km or less)
- Qualifying Scrapped Cars: Things get a little trickier when it comes to the "old" car that must be scrapped, but here are the main conditions. The scrapped car:
- 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;
- 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. Further detailed information on the operation of the scheme will be posted on the Revenue website in the coming days.
Some Common Questions About the Irish Scrappage Scheme
Q. When will the Irish car scrappage scheme start?
A. The Scrappage Scheme will run from 1 January 2010 to 31 December 2010.
Q. How much of a saving can I make on the purchase of a new car?
A. A discount of €1,500 will be available when you scrap a 10-year-old-or-more car.
Q. Is there any restriction on what car I can buy when availing of the Irish car scrappage scheme?
A. Yes. The VRT relief will be provided where a new Category A car is purchased of emission Bands A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.
Q. Does the car being scrapped have to be registered in my name?
A. Yes. The car must have been registered in the Republic of Ireland in the name of the purchaser of the new car for at least 18 months previous to the date of scrappage.
Q. Is there an age restriction on the scrapped car?
A. Yes. The car must be 10 years old or more from the date of first registration.
Q. Can I buy the new car first and scrap my current car afterward?
A. Yes, but your car 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.
Q. Does the car being scrapped have to have a valid NCT?
A. Yes. The car must have a valid Irish 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.
Q. Does the car being scrapped have to have valid insurance?
A. Yes. The car 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.
Q. Can I 'scrap' the car myself and keep some of its parts?
A. No. 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.
If you have any questions about the Irish Car Scrappage Scheme pop them in a comment below and we'll do our best to find you the answers.