Some 64,000 cars were registered in the first three months of this year in Ireland, a total that surpasses the full-year figure for the darkest days of the recession.
The near-30-per-cent jump in sales seen at the beginning of the year has carried on into March, suggesting that the car trade will finally break the 100,000 sales this year, for the first time since 2008.
The Society of the Irish Motor Industry (Simi) launched its first quarterly review of the year this week, in association with DoneDeal and economist Jim Power.
Power, who authored the report, said “the growth in sales is reflective of ongoing improvement in consumer confidence, the labour market and the general economic climate.
“Credit conditions for motor finance are also good with the new finance products making a significant contribution. Commercial vehicle registrations are a key indicator of business confidence and investment activity.”
Indeed, it would seem that everything is coming up motorist right now. Petrol and diesel prices are down by 10.9 per cent and 11.8 per cent respectively, while new car prices are, on average, down by 2.5 per cent. Average CO2 emissions from those 64,000 cars were 1.9 per cent lower than for the same period last year.
Strong growth
Commenting on the Simi and DoneDeal report, Alan Nolan director general, Simi, said: "Every county has experienced a strong growth in sales, ranging from Longford with the strongest growth of 47.2 per cent. Wexford is some way behind the trend with the lowest growth rate of just 12.8 per cent. Dublin accounts for 37.7 per cent of the national market, with Cork a distant second at 12.5 per cent.
“In terms of regional economic impact, the recovery in car sales is giving a boost to employment and general economic activity across the country. Employment in the sector is in steady recovery mode with an increase of 4,500 (12 per cent) jobs in 2014 bringing the total to 41,900 employed in the industry. Fifty-one per cent of Simi members surveyed have also said that they would be increasing their staffing levels during 2015.”
The Government is benefiting too, to the tune of €574 million gathered in vehicle registration tax, VAT and sundry other taxes from those 64,000 sales. That figure suggests we’re well on the way to the Irish motorist filling the State coffers to the tune of more than €1 billion in the course of a year.
Insurance costs
It’s not all positive news, however. Insurance costs are rising, by 14 per cent across the board, something for which the insurance industry has failed to offer a convincing explanation. The rising value of sterling and the fall in value of the euro has led to a decline in used vehicle imports, which is causing shortages in the availability of second-hand stock.
And there is still a significant concern over the values of those used cars, which were artificially inflated by the lack of stock from the years 2009 to 2013. As those values inevitably start to slide, many buyers could find it difficult to fund the cost of trading up to a new car.
