septembre 25, 2022


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Cork dealer says auto measures announced in 2022 budget ‘attack on consumers’

Cork’s auto industry has described the 2022 budget as an « attack on consumers and motorists » as fuel prices and new car prices soar.

The measures for cars announced in the 2022 budget included the introduction of the revised vehicle registration tax schedule from January next year, the extension of the €5,000 exemption for electric vehicles until the end of 2023, and the extension of the BIK exemption for battery electric vehicles. Until 2025.

Paddy Comin, head of communications at AA Ireland, said that while an increase in petrol and diesel prices had been expected, it came on the back of a 25% increase in petrol and diesel prices over the past 12 months.

Echoing Komen’s comments, Johnson & Perrott’s marketing director, Jerry Crowley, said that while the price increase was not unexpected, it all adds up and puts a stumbling block for people trying to drive in a greener, more sustainable way.

He said the fact that VRT has gone up « significantly across the board means there is an additional burden on motorists when buying a new car which is usually much less polluting than, say, the used vehicles they are currently driving ».

Mr. Crowley said new cars don’t necessarily have to be battery-powered or hybrid-powered because standard combustion engines currently being sold new are quite environmentally friendly in many cases.

Meanwhile, Blackwater Motors’ Dennis Murphy described the industry’s announced actions as « extremely disappointing. »

Private cars, which is what they attack, you can only call it an attack, they are 10% of all emissions in Ireland, that’s all they are and they get 100% of the taxes.

“We think at this point that this is anti-car, anti-driver and it’s wrapped up in a false emissions narrative because what they’re doing isn’t going to reduce emissions. Now new car prices are going up again and we’re talking about a car around the €40,000 class, which is close enough to being an average. The price of the car is now, and it will go up by about 1,700 euros again now.

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« You talk about these cars with a tax on them of about 16,000 euros between that and the VRT and you’d be wondering how much extra tax they want to get from this stuff.

There is already a shortage of used cars in the market and the prices of used cars are crossing the ceiling and the reason for this is that we have not sold enough new cars in this country to meet the demand for used cars.

The price increase, he said, « will make it worse because people will stick with their current car longer and buy an old used car that they can afford and will do nothing for emissions. »

He said the lack of public transportation as well as the rise in fuel prices through the introduction of the carbon tax is a « real attack on consumers and motorists ».

He said it was « a slap in the face for every consumer in the country and that Fine Vail, Fine Gael and the Greens are « irreplaceable ».