Friday, November 14, 2008

The plan extends to cars Lives of 10 years

The Government has done a facelift to the failed plan to try to resuscitate the Lives car sales, that chain's monthly falls 40%. One hundred days after its launch and with just half a hundred transactions recorded, the Council of Ministers yesterday expanded the conditions that allow eligible for the plan. The industry appreciates the reform, but is skeptical because the results did not include direct payments to consumers or to the financial vehicles.

The maximum amount is 30,000 euros and the amount, without interest, 10.000

The new Live presents three major developments. The first is that it reduces from 15 to 10 years seniority in order to scrapping the car and buy another. Cars are also accepted without age limit if you have more than 250,000 kilometers. It passes from four to nine million vehicles potential.

The second is to be increased to 30,000 euros (before 20,000) the maximum amount of the transaction and the third, extending the plan to cars. The plan also expands from 5,000 to 10,000 euros the amount financed without interest and a fixed rate to 2.5% for the remainder of the loan. It will not be necessary to fund the full amount of the vehicle. The new program allows partial funding and the possibility of including a year's absence from the principal.

In this way, a vehicle for 15,000 euros, the first year would be paid interest on $ 5,000. Taking an interest rate of 7.5%, reflecting a monthly fee of 31 euros.

At the press conference following the Council's Vice President Maria Teresa Fernandez de la Vega was convinced that the sector will exceed course sooner rather than later the current economic climate. "

The automobile industry is not so clear. The director general of ANFACO, management of manufacturers, Luis Valero, deemed necessary to include the brand in the financial rescue plan for banks that Plan Vive more effective. "The plan will have limited impact on the funding allocated to the ICO [1,200 million euros] and the difficulties of the financial resources to attract," he said.

The dealers warned that the main sticking point is access to funding. Faconauto believed that aid should have been direct, in order to reach the most disadvantaged incomes, lack of funding. Its president, Antonio Romero-Haupold, said that as no recovery in sales, threatening 20,000 jobs in the sector, 13% of the total.

The European market for passenger cars fell by 14.5% in October, with 1,134,031 units registered, a reflection of the financial crisis, reported yesterday by the Builders Association of European Automobile Manufacturers (ACEA).

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