Do I need to buy now for tax purposes?

HELPDESK:  Answering your motoring queries, with  MICHAEL McALEER

HELPDESK: Answering your motoring queries, with  MICHAEL McALEER

From Mary L:

I’ve been looking at the new Toyota Prius but Ive been told by my local dealer that I need to buy now to make sure I get the current tax incentive from the Government. Is it true that these cars will not benefit from tax incentives next year? I thought the last Budget was all about promoting electric and hybrid cars?

It’s true that the rebate of €2,500 on non plug-in hybrids is being lifted at the end of this year. That will affect not just the Prius but also cars like Honda’s Civic hybrid and Insight models, along with the hybrids from Lexus and the upcoming ones from Peugeot. Hybrid technology is developing quite quickly and the arrival of several European versions means the end of the scheme is ill-timed to promote these vehicles.

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The current tax incentives for flexible fuel vehicles and hybrids runs out on December 31st, so unless the car firms are willing to carry the increased tax burden themselves, prices are likely to rise on these vehicles.

The Government announced in the last Budget that it was extending the incentive for plug-in hybrid and electric vehicles until 2012, but the reality is that vehicles such as the Toyota Prius plug-in aren’t on sale here yet and will have barely left the boats in the spring of 2012 before the rebate comes to an end.

It seems a strange strategy for a Government eager to promote alternatives to the diesel/petrol domination and to get motorists acquainted with what it’s like to drive on electric power, albeit for very limited periods in the current hybrid offerings.

My advice would be that you get the car now before the rebate is removed, unless you are prepared to wait until early 2012.

From P Donegan, Co Dublin:

I cannot understand why the NRA won’t have more service stations built. It says it hasn’t the money but why can’t they just put it out to tender and let the private sector fund and build them? If you travel to Cork from Dublin (and vice versa), there is nowhere to stop and have a break and a cup of coffee between the outskirts of Dublin and the far side of Cork city. It is hard to imagine that this isn’t a profitable opportunity for the market to fill.

I'm very inclined to agree. For the last two weeks I’ve driven by the new service stations on the M1 and regardless of the time, the parking lots certainly suggest a brisk trade. I had my doubts about the location, being so close to Dublin, but anecdotally the stations seem to be doing well.

The reticence by the NRA to adopt these motorway service stations over the years goes against the principles of motorway development across the continent. Service stations have proved a success in every other nation from Denmark to the southern tip of Italy, so why are Irish roads so different?

It defies logic that Irish motorists are less inclined to appreciate the convenience of motorway service stops. If there is not enough traffic to support the service stations on particular motorway stretches, then perhaps questions should be asked as to whether we needed the motorway there at all.

Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2, or e-mail motorshelp@irishtimes.com