New car sales in Ireland have reached their highest levels since the economic collapse in 2008.
According to figures compiled by Motorcheck.ie, sales in the first half of 2014 have been the highest in six years with an increase of 24 per cent on the same period last year.
In the six months to June, almost 66,000 units have been sold.
The last time full year sales surpassed 100,000 was in 2008 and Motorcheck.ie, an online company that monitors sales, estimates 2014 could surpass 90,000 units. Commercial sales in the business world have also increased by 43 per cent.
"The Irish motor trade has suffered badly in terms of closures and job losses in recent years so the return to normality this year has provided some very welcome relief to dealers who have been under pressure" said Michael Rochford, managing director of Motorcheck.ie.
Positive consumer sentiment is seen as the principal reason for the increase, particularly in the latter stages of 2013.
So far the top selling brands have been Volkswagen, Toyota, Ford and Hyundai while Golfs, Qashquis, Focuses and Corollas have proved the most popular models.
In the commercial world, the Ford Transit, Volkswagen Caddy, Citroen Berlingo and Land Rover Discovery have come out on top.
While it remains too early to accurately gauge the impact of the dual-registration system - where cars are sold in two separate batches in the first and second half of the year - it does appear to be working.
The initiative, introduced last year, is designed to spread out sales to combat the phenomenon of “reg snobbery” where buyers often delay their purchase to maximise the amount of time they will have a newly registered vehicle.
“There was definitely a spike in July [last year] so we would expect another spike this year,” said Mr Rochford.
“It has definitely spread the sales out which takes the pressure off the motor trade but will it continue? I think the motor trade would be happy with a 60/40 split [between the first and second half of the year].” Anything more would be a resounding success.
Used car imports have also seen a bump in sales, rising 18.5 per cent on the first half of last year.
The low rate of new car sales in recent years has had the effect of reducing what is available second hand aged between two and five years. Consequently dealers and private buyers have often had to look to the UK which has been responsible for the export of nearly 30,000 vehicles to Ireland so far this year.
The ready availability of financing is also a factor with many manufacturers currently offering “personal contract purchase” (PCP) deals with low monthly payments. Some 26 per cent of new vehicles are being purchased under some form of finance, says Motorcheck.ie.
However, Mr Rochford warned that despite the popularity of PCPs, many drivers may forget about the restrictions when upgrading a previous purchase.
“Those opting for PCP deals should be aware that if they wish to enter a new PCP deal when their current one has ended, then they should start saving for their deposit now,” he said.
“Unfortunately many people forget that a PCP deal requires a deposit or trade-in at the front end. When you reach the end of the PCP you don’t own the car and therefore you won’t have a trade-in on your next deal.
“PCP is a great form of car finance, but be wise and put a little bit away each month to legislate for your lack of trade in on the next one.”
