SIMI review shows rise in used car sales salesales

USED car sales in the motor trade increased by a whopping 15 per cent in the first quarter of this year compared to the same period in 2014.

This equates to sales of 66,364 motors from January through to the end of March compared to 56,173 in the first quarter of last year.

Although imported used cars show a fall of 41 per cent (575), cars taken in to dealers’ stock in the first quarter also increased by 15 per cent, from 63,402 in 2014 to 74,710.

The latest Motor Industry Review by the Society of the Irish Motor Industry (SIMI) and DoneDeal shows growing confidence in the motor trade.

The SIMI and Done Deal report revealed that the strong trend of recovery seen in the motor industry in 2014 (96,344 registrations) has continued, with new car registrations in the first three months of the year showing a 29.68 per cent increase to reach 64,714.

Registrations of Light Commercial Vehicles increased by 58.6 per cent in Q1 2015, while registrations of Heavy Commercial Vehicles declined by 20.7 per cent in Q1 2015.

Economist Jim Power, author of the review, commented:

“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.

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The SIMI and Done Deal report also highlights that the cost of motoring has seen a decline in the first quarter of 2015.

Petrol prices are down by 10.9per cent; diesel prices by 11.8per cent and the average price of a new car has also declined by 2.5per cent.

Motor insurance costs however increased by 14per cent.

Average carbon emissions of vehicles registered in the first quarter of 2015 were 1.9per cent lower than the same quarter in 2014 and 28.6per cent lower than 2008 levels, reflecting more environmentally friendly cars on Irish roads.

Commenting on the SIMI and DoneDeal report, Alan Nolan Director General, SIMI said every county has experienced a strong growth in sales.

This ranges from Longford with the strongest growth of 47.2per cent,

? he said.

“Wexford is some way behind the trend with the lowest growth rate of just 12.8per cent.

Dublin accounts for 37.7per cent of the national market, with Cork a distant second at 12.5per 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 (12per cent) jobs in 2014 bringing the total to 41,900 employed in the Industry. Some 51per cent of SIMI Members surveyed have also said that they would be increasing their staffing level during 2015.

The Exchequer has collected

?¬574 million from new and used car sales in Quarter 1 of 2015, a 26.5per cent increase on the same period in 2014.

Jim Power stated:

“Based on trends in the first quarter and in April, new car registrations in 2015 could reach 123,000 representing an increase of 27.7per cent.

“This would generate an extra

?¬223 million for the Exchequer and create an extra 3,400 jobs in the sector.

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Cathal Cremen, Commercial Manager of DoneDeal’s Motor Section, added:

“2014 was a bumper year for Done Deal and our figures from Q1 2015 show that the trend has continued.

“With over

?¬3.9 billion worth of ads placed in our motor section alone last year we’re proud to be playing an important role in Ireland’s motoring sector. These incredible figures truly cement Done Deal’s position as the number one online source for motoring.

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