An increase in car sales in Donegal and across the country has been attributed in part to the scrappage scheme. Nationally, 21,078 cars were sold in January, up 29 percent on last year. Five hundred new cars were sold in Donegal last month,
Padraig Kelly, sales manager with Highland Motors in Letterkenny, said this January has seen a slight increase in sales compared to January last year, but he stressed last year had been an exceptional year compared to the two previous years.
The extension of the government scrappage scheme for another six months from the end of last year is helping sales, he said. He said last year was a bumper year because of the scrappage deal, “and the continuation of the scrappage deal seems to have carried things through again. It is definitely helping because there are a certain number of people coming into the net now who would not have qualified last year.
“It’s not all scrappage but obviously that is a big part of it,” he said. The scrappage scheme has also helped discourage people from crossing the border to buy new cars, Mr. Kelly said. “If you take the discount you can get on an old car, it takes the price of a new one down to the price of a decent second-hand one.”