Killarney

By Sean Moriarty
<h3>One of the key issues announced in Tuesday’s budget is the increase of the Vehicle Registration Tax, a fee unique to Ireland across the entire EU.</h3>
The cost of new cars will increase by between one and four percent from January 1.
This increase comes on the back of a second-hand car market that has been decimated as a result of Brexit and COVID-19 impacts.
David Randles, of Randles Bros Nissan on the Muckross Road, is the chair of the Kerry branch of the Society of the Irish Motor Industry (SIMI).
He believes that the price increase will hurt new car sales, which will in turn effect the second hand car market and, by default, force a reduction in revenue for Government.
“It was a negative budget for the motor industry,” he told the Killarney Advertiser. “I cannot see the reasoning for upping the price of new cars. The new car market is on the floor, we can’t get second hands due to Brexit. We need to sell new cars to get the trade-ins, so less cars [being sold] means less revenue. We are facing a tough first six months of 2022.”
The €5,000 relief for electric vehicles is being extended to the end of 2023.
“We are not ready for that down here in country areas. It is getting better [charging infrastructure] but in country areas we still need diesel,” added Mr Randles, whose family garage business is celebrating its 100th anniversary this year. “The motor industry is at a stage of reconfiguration. We will see a lot of changes in the way we do things over the next 10 years in terms of workshops and spare parts. Electric cars are a way better on brakes and tyres.&#8221;

Budget 2022 "negative" – say car dealers

DOWNLOAD AND XPLORE