The lack of new car sales in Ireland since 2008, bad has it has been for the new car trade, is starting to bite those looking for a decent used buy. With new car sales having been 50 per cent down for five years, that means a distinct lack of choice for those looking for a two- to three-year-old car. It has prompted some of the larger distributors to start importing used cars from colleagues in the UK distribution operations to give dealers decent stock levels. Citroën, for example, brought in more than 500 C4 Picasso MPVs last year to try and meet demand for that model, and it's not alone in this regard.
But what is the market actually like out there right now? Graham Browne, from McConnell Brothers Toyota dealership in Waterford, told The Irish Times that "the used car market at the moment is very tough. Good used cars are getting more expensive because they are harder to come by and you have to allow more money on it when taking it in as a trade-in. Also, it's tougher to sell because the customer is finding it tougher to get the money from banks and credit unions.
“The availability of used cars in this country is poor and has been poor for the last four years, and that’s solely down to the fact that the person with that quality used car is not going out and buying a new car. Figures came out at the end of July stating that car sales are picking up with the new 131/132 registration system that was brought in. I can tell you from the ground floor is that its all hokum. Registrations were up because the new registration system that was brought in has put main dealers under pressure from the distributor to get new car registrations.
“The problem with this is that to meet our quota for the second half of the year, we are left with registered new cars sitting on the forecourt with nowhere to go because the person that should be buying them is not out there anymore. It’s completely down to the [potential buyers] not being confident enough in the economy to go out and spend their money or ask for the loan from the unhelpful banks and credit unions.”
Buying in the UK
There is, of course, the option of going to the UK; even with the current exchange rate, there are still savings to be made. A quick comparison with some online prices revealed that you could land a two year-old Ford Focus hatchback in the UK at a saving of around €5,000 compared to the price of an identical Irish-registered model, including paying the Vehicle Registration Tax (VRT).
Shopping in the UK brings with it extra legwork, and keeping a close eye on vehicle history checks is required, but the savings are tempting. And if you don’t fancy the extra effort, there are companies, such as Palmdale.co.uk, which will locate, history check and purchase a car for you, leave it for collection at a depot close to Heathrow and charge a small fee for the process.
As the economy shows signs of recovery, the impact of the recession is likely to linger on in the car market for the next few years as used car buyers looking to change find their options dramatically reduced.
