Car scrappage scheme helps boost first-half car sales by 14%

THE car scrappage scheme which ended last week has helped boost first-half car sales by 14% on last year.

The scheme gave motorists relief on vehicle registration tax for new vehicles if they scrappeda car at least 10 years old. The scheme was supplemented by discounts from many motor dealerships.

According to data from the Society of the Irish Motor Industry (SIMI), just over 11,000 of the 77,134 new cars sold in the first six months of 2011 were bought last month as motorists took advantage of the Government incentive to the auto sales sector. The figures compare with more than 67,000 sales from January to June 2010 and leave the industry just over 11,000 short of all sales for last year, although there is normally a sharp decline in sales in the second half of every year.

However, overall sales appear to be holding steady, as the scrappage scheme accounted for just 15% of sales (11,688 cars) from January to June.

The society compiles the sales figures based on data from the Vehicle Registration Office and from the industry itself.

SIMI has previously said that the scrappage scheme has led to 2,200 additional jobs in the industry since its introduction at the December 2009 budget.

While the latest figures are encouraging, more than 47,000 new cars were bought in January 2008 alone, and the previous year saw more than 186,000 sales.

Meanwhile, property buyers are benefiting from further falls in asking prices of up to 10% in the last three months, according to the latest Daft.ie house price report.

The country’s largest property website reports the average asking price in June was €196,000, 47% lower than peak prices in 2007 and 5.1% below those in the first quarter of this year.

While prices of homes in Cork, Dublin, Galway and Limerick have fallen between 5% and 6% over the past three months, the decline in Waterford city averaged almost 9% and falls of up to 10% were recorded in Cavan, Donegal, Laois and Offaly.

Those interested in buying in Kerry or Mayo, however, only found prices to be 2% lower than in the first quarter of 2011.

A similar report by property website MyHome.ie suggests slightly lower asking price declines of 4% and says the average price for a home nationally has fallen from €260,000 to €249,000 in three months, with a 5.2% drop for Dublin houses to an average €286,000.