The car scrappage scheme is due to finish at the end of June 2011. So if you have  a car that qualifies an dyou are thinking of getting a new car – you need to act quickly.  It could save you €1250.

The scrappage scheme refunds you €1,250 of the Vehicle Registration Tax (VRT) on a  new car . To qualify you must scrap a car aged 10 years or over that has been registered in your name (or your spouse or civil partner) for at least 18 months at the time of scrapping it.

The scrapped car must have  a valid NCT, and be insured for at least 12 months.

The new car you are buying  must have  Co2 emissions of 140g/km or less – ie car tax bands  A or B .

Full details of original scrappage scheme here

The Car Scrappage scheme was introduced in 2010 – and enabled people to claim a refund of VRT when buying a new car and scrapping an old one . See Full details of Scrappage Scheme here .
In Budget 2011 – it was announced that the car scrappage scheme is being extended to 30 June 2011.
But – the maximum relief will be reduced from €1,500 to €1,250.
The good news is that the extended scrappage scheme is now available to a spouse or civil partner.

The December 9th Budget – as forecast here – revealed that  a car scrappage scheme which will apply in Ireland  from 1 January 2010 to 31 December 2010. The scheme will provide for up to  €1,500 reduction in Vehicle Registration Tax on a new car bought where a car of 10 years age or more is scrapped.

The Scrappage Scheme will run from 1 January 2010 to 31 December 2010.

See Details of Scrappage Scheme Extension to June 2011

VRT relief of up to €1,500 will be available.

The VRT relief will be provided where a new  car is purchased with emission Bands Category A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.

The car being scrapped:

Must have been registered in the State in the name of the purchaser of the new car for at least 18 months prior 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.

The introduction of a scrappage scheme for cars in Ireland is looking more likely.  (Update – See this Dec 2009 link for the  – Irish Scrappage Scheme Details)

A  recent review  of the Irish motor industry by Peter Bacon -    proposed a new two-year scrappage scheme on all cars over nine years old.  He suggested  a €2,000 rebate on new cars with carbon emissions of less than 140g/km, when old cars that qualify for the scheme are traded in.

This week 20 Fianna Fail backbenchers will lobby Finance Minister Brian Lenihan to introduce a car scrappage scheme in the December Budget . A motion by Sean Connick TD , calling for the introduction of a scrappage scheme,  has been backed by 20 TDs on the basis that it makes “economic sense” and has been done in 12 other European countries.

The UK scrappage scheme  gives buyers of new cars £2000 if they scrap their old car . Under the UK scheme the old car must  be registered in the United Kingdom on or before 29 February 2000 and be registered to the buyer continuously for 12 calendar months before the order date of the new vehicle. It also must have a current MOT test certificate , insurance and a current tax disc when the order for the new vehicle is placed .
The scrappage scheme is being credited as helping  increase new car sales in the UK . A total of 168,942 new UK cars were registered in October, up 31.6% from a year ago.
Here in Ireland – Renault have been advertising a scrappage scheme – which is available on all new models . The old car has to be 8 years old or more and it gets you €1500 off the price of  a new car.
December 9th – Budget Day – could bring some good news for the car dealers in Ireland if the scrappage scheme is introduced.

Update – See Scrappage Scheme  2010 Details Here