Car finance news today includes a story that
the troubled Irish
motor industry will be revamped by a Vat margin scheme. The
scheme mirrors similar initiatives in the EU
motor industry and will be introduced early next year.
Car dealers will be helped to shift their stock of
second-hand cars .
The Irish
car market is in trouble, with sales of
new cars falling by two thirds this year. Meanwhile, car
dealers are facing ever greater financial pressures. The Scheme
will allow dealers to pay VAT only on their profit margin rather
than the total cost of the sale.
The move should allow car dealers to reduce the price of their
cars, and will hopefully lead to a greater number of
vehicle sales. The scheme has been in place in the EU since
1994, but the strong Irish car market at the time kept them out of
it. The industry is calling for a
car scrappage scheme similar to that currently effective in the
UK.
