Wednesday 7 December 2016

A grand way to get the most out of your banger

We tell you everything you ever needed to know about the car scrappage scheme -- so it's bye, bye to that old rust-bucket and a bright hello to a shiny new model

Published 03/04/2011 | 05:00

Give me the scrappage scheme in a nutshell...

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Bring your old car along to be scrapped at the same time you buy an efficient new model and you'll get up to €1,250 off the price courtesy of VRT relief -- regardless of the value of your old car.

Sounds like a no-brainer. What's the catch?

First up, the car you're scrapping has to comply with the strict rules. We've provided a checklist (see facing page) for quick and easy reference. If your old banger ticks all the boxes, then it could be eligible for the scheme.

Alright, I'm ready to say goodbye to the heap of junk. What next?

It's time to consider the new car you'd like. Sensibly, the Government has limited the scrappage scheme to the purchase of more efficient new cars -- in a bid to reduce the size of Ireland's carbon footprint.

The chosen measure is emissions of carbon dioxide (CO2), as it is directly related to fuel economy and hence the efficiency of the car. You can choose any new car that has an official CO2 rating of 140g/km or less. This equates to Band A or Band B in taxation terms.

So now I just bring my old car to the scrapyard?

Not quite. To prevent the reintroduction of old cars to the system, all scrapped cars must be disposed of at an official Authorised Treatment Facility (ATF). They are legally bound to separate the car into its constituent parts and recycle as much as possible. They'll issue you with a Certificate of Destruction, without which you cannot claim back the VRT relief.

Sounds complicated.

It's fairly straightforward. In most cases you can authorise the dealer you buy a new car from to scrap the old car in your name. They do all the paperwork and deduct the VRT relief from your new car. Easy.

Great, but why shouldn't I just wait for the '12' plate in January?

Don't do that: the scheme ends on June 30 this year and is unlikely to be extended again. In fact, all eligible cars must be scrapped on or before this date too, so plan ahead.

Sounds great, but I still have more questions...

There's a big description of the scheme and FAQs at www.revenue.ie/en/tax/vrt/

scrappage-scheme

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