UPDATE 1-Spain car sales fall eases in March -Anfac

* Car sales down 38.7 percent in March vs year before

* Compares with y/o/y drop of 48.8 pct in Feb

* Total drops to 76,503 units from 124,702

(Adds ANFAC comment, context)

MADRID April 1 (Reuters) - The decline in Spanish car sales eased to 38.7 percent in March year-on-year after a 48.8 percent drop in February, partly due to a government stimulus plan, Spanish car makers association Anfac said on Wednesday.

The March fall, the 11th straight month of decline, compared with a drop of 49.6 percent in November which was the largest since the industry entered a steep slowdown in early 2008, Anfac data showed.

New car sales in March dropped to 76,503 units from 124,702 in the same month last year, but were supported by the government's Plan Vive-2 subsidy program, Anfac said.

Plan Vive-2 aims to subsidise the purchase of energy-efficient cars and to replace old vehicles. It cost the government more than 262 million euros ($346.2 million) to mid-March, with subsidies covering around 20 percent of all new car registrations.

New car sales fell 43.1 percent in the first quarter compared with a year earlier, showing demand within the Spanish market remains weak despite the plan, Anfac said.

The government has earmarked a total of 1.2 billion euros for Plan Vive, with 700 million available this year and the remaining 500 million for 2010.

Anfac would like the government to make all the funds available immediately to promote an even bigger impact on demand. (Reporting by Paul Day; Editing by David Holmes)