Budget 2010 - Scrappage Scheme, Should YOU buy?

So now it's official! 2010 will see the introduction of a long awaited for scrappage scheme. But will it make any difference to the catastrophic slump that new car sales have seen this year? Who will benefit from the scheme and what are the options when it comes to trading up?
Budget 2010 has introduced a stimulus package for the Irish motor industry in the form of a 1,500 Euro Scrappage allowance. This allowance will be made available to persons trading in any used car provided that it's ten years or older against a new vehicle that falls into the category of Band A or Band B CO2 Emissions. Unfortunately our online car index doesn't go back to the year 2000 but a previous post I wrote about the national fleet shows that there could be as many as 550,000 vehicles on the road that will qualify for the discount.
Just who will benefit from the scheme?
Before you rush out to order a new car, it's worth checking that your personal circumstances meet these four criteria;

  1. Do you own a car that's at least ten years old?
  2. Is your car worth less than 1,500 Euro?
  3. Do you like anything in Band A or Band B?
  4. Do you have access to cash / credit to make the ten year leap to a new car?

1. Do you own a car that's at least ten years old?

How old is your car?
How old is your car?

This is the easy part. Dig out your vehicle licensing certificate (logbook) and check the car's first date of registration (if you don't have it to hand you could request a Motorcheck valuation report where its detailed along with a market value for your car).
The date of registration needs to be ten years prior to the date you are thinking of taking delivery of your new car.
2. Is your car worth less than 1,500 Euro?
If you feel that your car is worth more than the scrappage incentive of 1,500 Euro then there's no point availing of the offer. Try to realise the vehicle's true value by selling it privately or offering it to the dealer as a normal part-exchange.
You can always take the scrappage deal later but be warned - any vehicle qualifying for the scrappage discount will be scrapped according to the terms and conditions of the scheme. You won't have any opportunity to buy it back from the dealer at a reduced price!
3. Do you actually like anything in Band A or Band B?

CO2 Bands
CO2 Bands

Okay - so you've got a ten year old car that's worth less than 1,500 euro and you're ready to order a new one!
Have you looked at the range of vehicles available in Band A and Band B? Is there something here that will fulfill your daily needs and put that 'new car smile' on your face?
42% of all cars registered this year fall into band b and with more manufacturers introducing CO2 reducing strategies we'll find this segment becoming increasingly popular.
Choose carefully - you could be driving it for another ten years!
4. Do you have access to cash or credit?

Now that you've decided what car you'd like to purchase, have you considered the best way to finance it? Sourcing finance at the dealership is not as easy as it used to be. Many of the banks that offered finance through the dealer network have stopped accepting new applications or signaled their intention to leave the market altogether. If you're planning on taking out a car loan, call your bank first. Make sure the credit is in place at a term and monthly repayment that you're happy you can afford.
Some additional insurances to consider would be Payment Protection (this can cover your payments if you're made redundant or unable to work) and Gap Insurance (If your car is stolen or involved in an accident it will cover any finance owned on the car).
If you have any questions or comments on this post or your own particular circumstances, feel free to drop me a note below. I'd be glad to offer you any assistance I can.

Funky Motors - December 10, 2009 at 8:11 pm
Very nice article and very well explained for people who think of getting a new car soon. Just wrote an article about the scrappage scheme the other day
Shane Teskey - December 10, 2009 at 9:31 pm
Thanks for your comment. I'm glad you mentioned the Renault scrappage offer which is now offering some fantastic value on the range. All we need now is a Renault bank!
joe conway - November 11, 2010 at 11:43 am
Can the new car be registered in a company name?. The car to be scrapped is registered to the same company.
Shane Teskey - November 17, 2010 at 10:27 am
Hi Joe, That's a good question. I would assume it can but I'll check with Revenue for you.
Shane Teskey - November 17, 2010 at 12:05 pm
Hi Joe, Just received this reply from Revenue. On the surface the answer is yes, provided all the conditions are met. Where problems might arise is the name of the vehicle owner. If it is a company car, then, in theory it should be registered in the name of the company secretary. There would be an issue that would make the vehicle ineligible if, for example the company secretary changed recently as the condition that requires the vehicle to 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 would not have been met. The insurance could also provide a stumbling block. I believe that fleet policies do not always provide an insurance cert for each vehicle and some don't even list the individual vehicles on the policy and that may invalidate the vehicle also as the condition 'must 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 the date of scrappage' would not have been met. While the scheme did not exclude company vehicles, it was aimed primarily at the private owner so some of the quirks of company ownership were not taken into account in drafting the legislation.
Funky Motors - December 10, 2009 at 9:40 pm
The way the main dealerships are closing hard-luck Shane. I've heard Koping Motors, EP Mooney & Belgard Motors closed down, some of the biggest car garages in Ireland. If things are going in this direction I'll see pigs flying quicker than a Renault Bank... lol
Essential Guide To 2009 Irish Car Scrappage Scheme – Conditions for Scrappage Scheme – Motorcheck Blog - December 17, 2009 at 10:41 am
[...] announcement of the Irish Car Scrappage Scheme has certainly generated a lot of interest from both the industry and the buying public. The [...]
Tony - February 01, 2010 at 12:47 am
I wonder if the list prices will rise by a couple of grand like in the U.K., which means that the consumer in effect gets nothing for scrapping their car?
Shane Teskey - February 01, 2010 at 4:09 pm
We can only wait and watch! Thanks for the comment.
tony law - February 09, 2010 at 4:23 pm
If I have a 99 car, can I scrap it with the govt scheme and buy 06,07 0r 08 car?
Shane Teskey - February 09, 2010 at 9:58 pm
Unfortunately not. Scrappage is only available on a new car.
tony law - February 09, 2010 at 4:29 pm
What are the 7-Seater cars in the scheme?
Shane Teskey - February 09, 2010 at 9:56 pm
Good question Tony! I don't have a list at the moment but what I'll do is pull out a list of all the 7 seater's registered so far this year that fall into band A and band B. That should give us an idea. I'll be back to you tomorrow.
Shane Teskey - February 10, 2010 at 12:38 pm
John breen - June 10, 2010 at 11:24 pm
Can I buy a ten year old car tomorrow and get the scrappage the day after?
Shane Teskey - June 11, 2010 at 10:38 am
No. You have to own the car for a minimum of 18 months.
Denny - June 27, 2010 at 2:19 pm
Hi Just wondering my brother in law is getting a new car, but his current car is only 2004. If I buy the car for him and get the scrappage on my car, do I have to keep the new car in my name for a certain period? And if so how long?
Shane Teskey - July 19, 2010 at 5:51 pm
Common one this! You can sell on the car to him anytime after buying it. There's no time limit.
Hector - July 21, 2010 at 2:47 pm
I bought a 10 year old car last year in september and the NCT expires in august. My mechanic told me it will not defenitely pass. Can I get the scrappage or what i can do?
Shane Teskey - August 09, 2010 at 8:49 pm
Hi Hector, As you have to have owned the car for 18 months before you can qualify for scrappage it will be March of next year before you could qualify. Fingers crossed for an extension to the scheme!
Gerry Dorrity - August 03, 2010 at 11:29 am
Can I buy a new car in NI, import it to RoI and then scrap my ten year old car under the scrappage scheme?
Shane Teskey - August 28, 2010 at 12:38 pm
Hi Gerry, Sorry for the delay on getting back to you on this one. Good news! Revenue have confirmed to me that there is nothing in the legislation limiting the eligibility for scrappage payments to the location of the purchase of the vehicle. In other words, provided all the other conditions are met, a vehicle purchased in NI is eligible to the scrappage repayment.
MDM - August 24, 2010 at 3:46 pm
hi Shane, My car is over 10 yrs old and I ordered a new car last May and was told it will be November before i get it. The insurance of the car has just expired and it is taxed and nct'd until Dec 2010. My car is off the road since April, can i claim back the tax in the car and still get the scrappage? I have been told by the garage that the car must be taxed to avail of the scrappage. Can you clarify the position on car tax?
Shane Teskey - August 28, 2010 at 12:43 pm
Hi Mairead, There isn't anything in the legislation that says your car must be taxed. With regard to claiming back tax you can only do this if you have in excess of three months tax on the car on the date it was scrapped. So if you scrap it now you will be able to apply for a refund on the road tax paid up until December. More info on how to go about this here Just remember that the window for scrapping your car and registering the new one is 60 days so be sure you will have the new car within this period before you scrap the car.
Confused dude - August 26, 2010 at 3:14 pm
Hi, can someone answer me this, I own a Citeron Berlingo Van which emits more and more black smoke every day, i have a good job and so could probably afford finance. Could I go to someone, say Renault, and they would take the berlingo van as scrappage while i come out with a nice new Clio or something to that effect? Also for Finance, how does that work, do i have to have a certain deposit first before i can apply? say the car is 10k, do i need to have a 2k deposit? and then generally how much would repayments be monthly? Sorry about the essay, iv never done anything like what i mentioned before and its not something that's written down anywhere. I hope someone answers and doesnt just think im some complete loser
Shane Teskey - August 28, 2010 at 12:34 pm
Hi Gary, Bad news is your Berlingo van doesn't qualify for scrappage as it's a commercial vehicle. Good news is you might want to consider a personal contract purchase (PCP) car lease. I know Renault were offering something attractive on their new Megane recently. More info here Hope this helps!
B F - September 09, 2010 at 11:26 pm
Can someone please tell me what the position is? I became the registered owner of an old car on the 1st of July 2009. It is a 98 reg and I have kept it taxed and insured and it has passed its N.C.T. When is the first legal day I can avail of scrappage 31st of Dec. 2010 or do I have to wait until 1st of January 2011? Would be grateful for a reply, will scrappage scheme be extended to 2011?
Shane Teskey - September 10, 2010 at 4:40 pm
Hi Breda, The car has to be in your name for 18 months before it becomes eligible for scrappage. That would make the 1st February 2011 as the qualifying date. Unfortunately there hasn't been any decision on whether or not the scrappage offer will continue beyond December 31st of this year but you can be sure that the industry will be lobbying hard for it.
Danni - September 21, 2010 at 2:05 pm
Hi there! Looking to scrap my '96 Starlet in Dec and get new vehicle registered in Jan/Feb 2011. I checked the revenue website they state : "must be scrapped within 60 days of the date of the new car being registered, or have been scrapped within 60 days immediately before the date of the new car being registered; " So can I assume from the above that although my car is being scrapped in 2010, I can get the €1500 VRT relief against the new car in 2011?
Shane Teskey - September 24, 2010 at 1:37 pm
Hi Danni, Unfortunately now. Under the current rules your new car must be registered before the end of 2010. S.
Robbie - September 24, 2010 at 1:59 pm
Hi folks My Dad is scrapping his 12 year old car under the scheme. His car has an NCT cert since May 2010. My car is due for NCT next month and will fail because of the tyres (roadworthy but don't have the 'E' on them). Can I swap his tyres for mine or does that somehow 'invalidate' his NCT? Thanks Robbie
Shane Teskey - September 28, 2010 at 5:02 pm
Hi Robbie, Modifications made to a car after its been through the NCT don't invalidate the previous test. It is after all, only a representation of the car at a given data and time and can't guarantee that it will always be in the same condition as it was on the test day. That's why we recommend the further a car goes from its test date, the heavier the scrutiny you should put it under. Hope this helps! S.
Ash - October 25, 2010 at 8:30 pm
Hi, I have ford ka 2000 year, nctd till jan.2012 and would like to buy a new ford ka 2010. Am I entitled to the goverment scrappage sheme and can I buy a new ford ka this year?
Shane Teskey - October 26, 2010 at 6:05 pm
Hi Ash, If your current car qualifies under Revenue's criteria (see https://www.motorcheck.ie/blog/is-your-car-fit-for-scrap/) then you should be able to buy a new one without difficulty.
Gav - October 26, 2010 at 10:49 am
Hi there Shane, you might be able to help me out! Given the time of year I am wondering if it is possible to avail of the current scrappage scheme but have your new car delivered/registered in 2011? I have been looking around and some of the models I am interested in are not available for delivery until then, so if the scrappage scheme is not extended in the budget they may not be an option for me.
Shane Teskey - October 26, 2010 at 6:03 pm
Hi Gav, No official word on the whether the scrappage scheme will continue next year or not. Looks like Government feels its had its time in the sun. A little birdie told me today that Renault are planning an announcement regarding their current scrappage offer this week which will be good news for 2011 buyers. Watch this space!
Niamh - November 01, 2010 at 12:12 pm
Hi Shane, I am one of the many that has a query on scrappage coming up to the end of 2010 and start of 2011. I have ordered a Skoda Octivia diesel in Aug 2010 and because of high demand there is a 3 month waiting list. It was due in Oct'10 however it never arrived and it is looking now at least Nov' 2010. I am now getting cold feet as the new car will automatically lose value if registered in 2010 (going into 2011). I'm thinking that the scrappage scheme may not be worth the saving now when the car will have already been devalued as it will be a year old. Is there any chance of being able to register the car in 2011 when I offically ordered it in August 2010? Or should the garage compensate me for the devaluation that the 2011 year will bring?
Shane Teskey - November 01, 2010 at 4:56 pm
Hi Niamh, You're not alone out there! Many people get disgruntled at this time of year if the car they've been waiting months for arrives just before the end of the year. Unfortunately there's not a lot your garage can do. They're are the mercy of the distributor and just as anxious to deliver the car to you as you are to get it. If it was me I'd wait untill 2011 and register it then but the availability of scrappage complicates matters. We won't know until December's budget whether the scrappage scheme will be continued in 2011 or not but the signs aren't great at the moment. Is there any chance you're car could be worth 1,500 in the private market? Have you tried advertising it privately?
Gav - November 01, 2010 at 5:33 pm
Shane and Niamh, I actually contacted the Dept of Finance about this and the information that was given to me was that if the scrappage scheme paperwork relating to a specific deal was completed and in order before the 31st December that there was no barrier to holding off on registration of the new car until 2011 from their point of view (for the 2010 scrappage contribution). I would suggest you contact the Dept of Finance to verify this, I'd be interested to see if this position was confirmed by someone else. I'm not familiar with the paperwork that has to be filled out I presume it does not need the new registration number that you are getting! The dealer may have other issues with regard to their own scrappage allowances etc. I'm not sure? Gav.
Niamh - November 02, 2010 at 1:18 pm
Hi Shane, I rang the Dept of Finance today and they had to go away and check with the revenue group and rang me back saying no that car has to be scrapped and registered prior to 31 Dec 2010 as it currently stands. So unless they say different next month that you can order before end of year and register at a later date for now it is a no go. Niamh
Gav - November 02, 2010 at 2:34 pm
Thanks Niamh, sounds like I may have been misled! Gav.
Dave - November 17, 2010 at 11:40 am
Hi, I was wondering, I purchased a 2007 Lexus IS220D in January 2010, and traded in a '98 BMW. I assumed that it wouldnt qualify for any scrappage due to the fact I didnt buy a new car. However about a month later I got a letter from the bank saying they were claiming back approx €1700 on my behalf from the government and I got my money within a few weeks. I found this odd seeing as I didnt buy a new car. I am wondering how I qualified for such a return... I remember there was a something mentioned in the latter i got about a reduced VAT rate under the 'scrappage scheme', but i am still lost as to how I qualified for it. Dave
Niamh - December 17, 2010 at 4:40 pm
Hi Shane, Great news on one hand that scrappage is now being extended into 2011. I have a skoda on order since last week in July which was meant to arrive in Oct and still hasn't arrived. Now I am being told i have before of 31st of dec 2010, still has arrived as of the 17th Dec but i thought not to worry I can register in 2011. Howvever they have now told me skoda have increased their prices and want another 600 euro to register in new year. Where do I stand, I not the only one in this psoition and know others have told them to keep their car. It's the principle of stricking a deal 6 months ago and now it be added onto and ot be fair I don't think its the dealers fault but skoda themsleves as they could nto deliver on time and are now adding to the price. Should I contact skoda themselves and changelle them At this stage it is turning me right off the scrappage and just going for a good second hand car instead.
Michael Groves - January 27, 2011 at 7:17 pm
Shane I am hoping you can answer this question for me. I own a 00 VW Passat which has been registered in my name for 8 years, but i bought it in the UK in 2003 and moved to Ireland where i paid VRT as i only owned it for a few weeks on arrival. My question is am i eligable for the goverment scrappage scheme Michael
James Lavelle - February 11, 2011 at 11:48 pm
This scrappage scheme should be scrapped now. If the motor car industry can not survive then shut down the failing units.That what happens in every other industry. If you look at the current car sales in a few years time all that wll be available is small cars that are really designed for city/town use Family car unafordable,family squeezed into a small city car making itr a death trap. Ireland the nation of small cars- suitable for leprechauns.,we should order them in a standard green with a white bonnet that would be nice and an electric engine in case the oil runs out. Bord Failte can include in their brochure.this wonderful motoring country,like they used to years ago. All the glassy showrooms that years ago used to have large family cars on display are now going to be changed into visitor centres i rang that guy in Castlebar one day about the heavy taxed motorist ,not asking him to do away with it but to reorganise it so that the ordinary family can have a mid/large car be it new or used but that they can have reasonable .no joy. Yet we vote in these Gombeen men they are in all parties and independants as well and they still can not see an industry taxed to a stop.Scrappage scheme is not the answer some other guy is paying for that Paddy the GREEN car man save the world There was a guy in Germany years ago and he got a car designed so that every German family could afford one.Not so in Ireland,wemust save the world. We are watching that fellow Obama,He was giving the car industry money.Maybe thats where we got the idea.
Maura - February 23, 2011 at 11:52 am
Hi a quick question, my car is an 01 which was registered in May of that year, do i have to wait until may 2011 to purchase a new car