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Inishowen gets motoring again
19.01.10
by Linda McGrory
INISHOWEN car dealers have entered 2010 with a
renewed sense of hope and optimism following the
"disaster" that was 2009.
As recession dug deep last year, luxury items such
as cars were the first on the hit list of many
cash-strapped locals.
However, Michael Doherty of Joseph Doherty Ltd., in
Moville said there has been a big surge of interest
from potential buyers so far this year due to a
number of factors including the National Car
Scrappage Scheme, VAT reduction, a more favourable
euro-sterling exchange rate and the increase in VAT
in the North. He said he would be hopeful of selling
up to 20 new cars before January is out. |
"The first week of
January was awful because of the weather but since
the frost and ice has cleared up there has been a
great level of interest in the scrappage scheme,"
said Michael, who is a member of business lobby
group, Inishowen Inc.
"Car prices have come down in price substantially in
the Republic of Ireland with Volkswagen, Audi and
Fiat all down 15%. When you add the scrappage deal,
the 0.5% drop in the top rate of VAT, the 2.5%
increase in VAT in the North and the strengthening
of sterling against the euro, it's all looking good. |
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"Without a doubt, 2010
is the year to buy a car and we are also very
hopeful that car finance will be more free-flowing
too. It is all looking much better than 2009 which
was the worst year I can remember in my 30 years
here."
His sentiments were echoed by John Henry McLaughlin
of Inishowen Motors who said things were looking
"far more positive" than last year when turnover was
down 50% at his two showrooms in Malin and
Letterkenny.
"I don't know how good the scrappage scheme will be
because someone with a ten-year old car generally is
not as likely to buy a new one. Having said that,
every little thing is a plus for us at this stage
including the small reduction in VAT and the fact
that second hand cars have become dearer and harder
to get in the North," said John Henry. "We're
expecting a big demand for second hand cars this
year because there just aren't as many available in
the North and they've become dearer there too. This
is because people in Britain, where a lot of the
second hand cars come from, are holding on to their
cars for longer.
“Sales are moving again and every week it’s getting
better. People are realising that life has to go on
and we’re hopeful credit will be easier to get too.”
The new scrappage scheme gives VRT relief of up to
€1,500 when a new car with CO2 emissions of not more
than 140g/km is bought and registered while another
car, over ten years old, is scrapped. |
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