Scrappage scheme withdrawal hits sales

The VAT increase and the withdrawal of the car scrappage scheme is responsible the fall in new car sales, according The Society of the Motor Industry Ireland.

Society director Tom Cullen said that the figures were along the lines of what they expected would happen once scheme was withdrawn.

Mr Cullen said: “The figures are down which is a reflection on the VAT increase and consumer sentiment. The scrappage scheme propped up the new car sales figures last year. 17,000 cars were bought on scrappage last year. When scrappage figures are excluded, this is what we would expect to see.”