Swappage will 'guarantee' €126m for Exchequer

Consumer research has shown emphatic support for the Society of the Irish Motor Industry's (SIMI) Budget submission scheme, Swappage, which proposes a reduction of €2,000 in VRT for any new car purchased in 2014 when a car aged 6 years or older is traded in, writes Trish Whelan.

The research, conducted by Ignite Research, shows that 78 percent of people would be likely to buy a new car if a new scheme was introduced to reduce the cost. The average discount that would be expected by consumers is €3,087.

Alan Nolan

Alan Nolan, Director General of SIMI said there has been an extremely positive reaction since they proposed Swappage for this Budget. "There is an overriding consensus that this works for everyone, the Government, the Industry and for the consumer too."

He said feedback from manufacturers and dealers is that they will make this work and will further incentivise the cost of a new car at their end to make it an even better deal for the consumer with a bigger reduction in price. This would be similar to what happened with the Scrappage scheme with some manufacturers more than doubling the Government discount.

Mr Nolan said Swappage will generate €126 million for the Exchequer, will create 2,200 jobs across the country and will reduce C02 emissions by 11,500 tonnes. "If the Government gives the go-ahead for this, around 90,000 cars will be ordered before the end of this year. These cars will only be able to be sold in Ireland, so taxes for the Government are guaranteed. If it doesn't go ahead, then 5,000 jobs will be lost with the Motor Industry over the next five years."

This, he added, would see the closure of 250 dealerships across the country.