Time is running out for the Government scrappage scheme. PADDY COMYNexplains how to take advantage before it's too late
Scrappage? Remind me again what it is all about?
The scheme provides VRT relief when a new passenger car with emissions of not more than 140g/km (CO2 band A or B) is purchased and registered and another passenger car, over 10 years old is scrapped. The scheme runs until the end of this month.
How much do I get off the new car?
This year, the Government allows €1,250 off the price of qualifying vehicles, which is a little less than the €1,500 allowed last year. However, this price is often just the starting point, with many brands offering additional support against your purchase. Some manufacturers match the allowance, some offer thousands off the price.
Remind me again how I qualify?
The car you present must be registered in the State in the name of the registered owner of the new car for at least 18 months immediately prior to the date of scrappage. So, no, you can’t bring in your brother’s old banger and get a shiny new car for yourself. The car must be 10 years old or more from the date of first registration. The car must be scrapped within 60 days after the date of the new car being registered, or have been scrapped within 60 days prior to this. It must have a valid NCT certificate, or one that has expired no more than 90 days before the date of scrappage, or documentation to indicate that it has failed an NCT roadworthiness test in the previous six months. It must also have been insured for use on the road in the name of the registered owner or in the name of the spouse of the registered owner for at least 12 months in the 18 months immediately prior to scrappage.
Where do I scrap the car?
If you are trading the car in against a new one, your dealer will usually take care of all this. But you can do it yourself if you wish. The car must be scrapped at an Authorised Treatment Facility (ATF). When you present your car for scrapping, the ATF will issue a certificate of destruction. Unless you have the certificate, you will not be eligible for relief.
So, if I order a new car now and it arrives in July, will I still get the VRT relief?
No. You need to have the car registered before June 30th to qualify. So that really does mean that time is against you. If you want to avail of the scheme, you need to buy a car that a dealer has in stock. Most of the major brands are reporting decent stock levels. “We anticipate a market of about 10,000 cars in June, so we have sufficient stock levels to deal with that. Most buyers even at this stage should be able to get what they want or very close to it,” says Nissan Ireland marketing director Paul O’Sullivan. This is a sentiment echoed by Julien LeLorrain of Renault Ireland: “We have plenty of cars in stock and we will offer a special deal on Clio of €9,990 for a five-door Clio Royale with metallic paint and delivery charges included until the scheme ends.” Ford and Toyota are also reporting strong stock levels.
So, if I have registered the car before the end of June but the car has yet to be scrapped, am I still okay?
No, the June 30th deadline is very strict, so you need to have the old car scrapped and the new car registered before this date. Anyone going into a dealer a couple of days before the deadline is likely to end up disappointed.
I taxed my car for a year in January and now I’m going to scrap it. Will I get this money back?
Yes you can. You may reclaim any motor tax remaining on the scrapped vehicle in excess of three months. Details of how to do this can be found on the Department of the Environment website.
