Car sales continue to fall, but plan PIVE could save you 2k off the cost of a car if you buy now

Car manufacturers are offering good deals to those who are in a position to buy

In spite of the best efforts of the government to stimulate interest in the car market with the implementation of Plan PIVE, car sales continue to register negative figures, closing November with just 48.155 units.

This represents a decline nationally of -20-3% with respect to November last year, according to data released by the manufacturer’s association Anfac, the concessionaries, Faconauto and the car sales industry, Ganvam.
This brings car matriculations year to date to 648.392, which is -12.6% down on 2011.

71% of all matriculations were diesel, and 27% for standard fuel, with just 1.55 for hybrids and electrical vehicles.
Sales fell in every community throughout the country: in Murcia 1128 vehicles were matriculated, -14.87% less than in November 2011. The percentage decline year to date is -9.76%.

Plan PIVE is working, according to the associations.
Although the associations are disappointed with the figures, they are satisfied that Plan PIVE, is helping to restimulate sales and will help the industry to conclude 2012 above the 7000,000 car sales level which had been anticipated for this year. December, they are hoping, will be better, although they anticipate that the money allocated for Plan PIVE will be exhausted by the end of January.


So what is Plan PIVE?
Plan PIVE began on 1st October 2012 and concludes on March 31st 2013.

The package offers discounts of 2000 euros on the purchase of a new vehicle, the Ministry of Industry contributing 1000 euros, providing that the manufacturers put in the other 1000 euros. Anyone applying for a grant must turn in a vehicle over 12 years of age in exchange for the grant and vehicles cannot cost more than 25,000 euros.


The vehicle purchased must also be an electric car, hybrid, use alternative fossil fuels (such as gas), or have a grade A or B energy efficiency. In practice this means most cars except high speed or high volume gas guzzlers.


The Government is putting in 75 million euros, which means they are subsidising 75,000 vehicles effectively. The plan is being justified as a means of supporting the car industry, but also by supporting the drive to remove older, fuel guzzling and eco-unfriendly cars with newer, more fuel efficient and eco friendly models. However, those with cars over 12 years old are less likely to be the profile of those having the money to splash out on brand new cars in the first place, so although the plan seems logical and strong arguments can be made for the fuel savings angle, the reality is that more people are likely to pick up an old banger for the express purpose of turning it in, than turn in their own cars.


There is also the sticky issue of how much discount the concessionaries might have given were they not obliged to pay over 1000 euros out of their own pockets. Would the purchaser have obtained that discount prior to agreement of the purchase price by hard haggling anyway?
So, if you are thinking about buying a new car, settle on the price, then mention the words Plan PIVE.


It might save a couple of grand off the asking price.

If you are looking for a vehicle, you might like to know about the Motor Show at Torre Pacheco between the 6th and 9th December.