In February 2008 some 6,901 new cars were sold in the province of Malaga; in February 2009 customers drove no more than 1,599 vehicles out of the showrooms. This unprecedented fall of 76.8 per cent has prompted dealers to call for more government intervention to save the market.

They claim that the plan known as ‘Vive’ devised by the Spanish Government has not worked. The plan offers a loan of up to 10,000 euros at 0% interest for the purchase of a new vehicle to replace an old one that is at least 10 years old or has 250,000 kilometres on the clock. While the funds come from the Official Credit Institute (ICO), the loans have to be approved by the banks which, in the current climate, has been the stumbling block.

Direct benefits

The dealers are now calling for the Government to introduce a new ‘Plan Prever’: in other words to give the customer a direct financial benefit for scrapping an old car and buying a new one. They look to other European countries to find examples of success stories. “We have to go back to giving the buyer money. In Germany they get 2,500 euros and this has revived sales”, says Ernesto Marín of the Opel dealers Gálvez Motor. He refers to the German Government’s scheme to stimulate the economy by offering 2,500 euros for the purchase of a new or nearly new vehicle with low CO2 emissions when a car more than nine years old is sent to the scrapyard. France has introduced a similar but not quite so generous, scheme, offering buyers benefits of up to 1,000 euros.

Marín adds that with the Spanish plan buyers are still in the hands of the banks. “Some sales have fallen through because customers are not granted the loan”.

Meanwhile showrooms in the province of Malaga are having to lay off staff in order to stay open, and introduce special offers to attract customers.

In fact in terms of prices, Antonio Romero-Haupold, president of the association of car dealers (Faconauto), is quiet clear: “This is the best time in history to buy a new car”.