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New car sales Plummet


pfkf

Member
Joined
Oct 3, 2006
Messages
71
According to breakingnews.ie,

New vehicle sales plummet | BreakingNews.ie

New vehicle sales fell by a staggering 64% in the first week of 2009, official figures revealed today.

As the recession begins to bite, only 9,390 cars were registered in the first five days of January compared to 26,029 for the same period last year.

The question is now, how many car dealers will be closing down this year? If this trend was to continue there would be serious job losses in the sector.
 

Wakeupcall

Well-known member
Joined
Jan 7, 2009
Messages
1,017
According to breakingnews.ie,

New vehicle sales plummet | BreakingNews.ie

New vehicle sales fell by a staggering 64% in the first week of 2009, official figures revealed today.

As the recession begins to bite, only 9,390 cars were registered in the first five days of January compared to 26,029 for the same period last year.

The question is now, how many car dealers will be closing down this year? If this trend was to continue there would be serious job losses in the sector.
It will be all about second hand cars going forward. Businesses who service / repair these vehicles should see expansion no? Perhaps the new car garage workers will re-direct their skills to maintaining the existing cars on the Irish roads... perhaps
 

pfkf

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Joined
Oct 3, 2006
Messages
71
It will be all about second hand cars going forward. Businesses who service / repair these vehicles should see expansion no? Perhaps the new car garage workers will re-direct their skills to maintaining the existing cars on the Irish roads... perhaps
I accpet your point about second hand cars, but the amount of new car sales is usually an indication of how much disposible cash people have and 64% reduction in new car sales when compared to last year is a shocking figure and is an indication that people either don't have the money or are not willing to spend on what could be seen as a luxury item.
 

TradCat

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Jun 5, 2005
Messages
1,992
Time to abolish VRT. Like Stamp Duty it's a cash-cow in a boom but a jobs killer in a recession. Or will we just let the car business die too?
 

Wakeupcall

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I accpet your point about second hand cars, but the amount of new car sales is usually an indication of how much disposible cash people have and 64% reduction in new car sales when compared to last year is a shocking figure and is an indication that people either don't have the money or are not willing to spend on what could be seen as a luxury item.
There is still over 90% employment. This may decrease to 80%

People will still have money. They will be less willing to spend and they will be trying to get the most out of things they already have, including their cars.
 

blucey

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Joined
Jan 4, 2007
Messages
366
Trevor's delighted


All those nasty cars....brrr. we haaaatessss them, haaaates them, dont we? yesssss....
 

Stroke

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Mar 26, 2003
Messages
458
Was commuting in and out of Dublin each day this week, and finally saw my first 09 reg car today in Navan, with a 09 LM reg. This is the first time that I can remember that the month had to go into double figures before I saw a newly registered vehicle....
 

TradCat

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Was commuting in and out of Dublin each day this week, and finally saw my first 09 reg car today in Navan, with a 09 LM reg. This is the first time that I can remember that the month had to go into double figures before I saw a newly registered vehicle....
Probably someone from the public sector.
 

SPN

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Feb 2, 2004
Messages
16,886
People trying to sell 2007 cars with very low mileage are lucky to make 50% of their original price. Why would anybody buy a new car in that environment?

I even heard of one dealer who sold a brand new €85,000 car for €42,000 cash on a Friday so he could pay the wages.

And then there is a local dealer who had 180 new cars in stock for January, and only 24 of them sold so far.


The problem, as I've said previously, is the contraction in the availability of money/credit due to the total collapse of the global finance system. According to the Central Bank we currently have about 20% less money in the economy than we had 12 months ago.

I don't see removing VRT as being a solution to anything. The problem is with the buy now, pay later economic model we have abused over the last ten years.

If all the spare money in the economy is going to pay down previously incurred debt, then there isn't going to be a whole lot left over to keep the car sellers in business - and that's assuming that the car producers are still in business in 2010.

..
.
 

deepness

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Feb 4, 2008
Messages
2,529
LOL @ PS jibe!

Few issues hitting this...

Banks wont lend money to lots of people and credit from dealers is available but harder to get.
Dealers wont take trade ins because they have too much stock so people are finding it hard to get rid of their old cars.
Very few people with enough cash to buy a car outright without some finance...and those with cash are going North or across the water where they are getting much better value for their cash.
Prices are way too high in Ireland for new cars relative to the UK for example where specs are also a lot higher on new cars.

Buddy of mine works for a (usually) busy main dealers and he hasnt had a sale in months for those reasons. Reckons he will be out of a job within weeks.
 

DaveM

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Sep 16, 2010
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16,033
The comparision between January 2008 and 2009 makes for a good comparison but the collapse in new car sales happened over 6 months ago. This sector is going to get hit very hard indeed and will suffer higher job losses than most other sectors.
 

SPN

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Feb 2, 2004
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And the other thing to remember when you see an 09 car (I've only seen one, and it was parked outside a dealers) is that the number sequence starts at 201.

The first 200 numbers are reserved for vanity plates or fleets. (eg, JJ Kavanagh & Sons registers all their buses with 1, 11, 111 or 1111)


..
.
 

Catalpa

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Joined
Jun 10, 2004
Messages
10,301
According to breakingnews.ie,

New vehicle sales plummet | BreakingNews.ie

New vehicle sales fell by a staggering 64% in the first week of 2009, official figures revealed today.

As the recession begins to bite, only 9,390 cars were registered in the first five days of January compared to 26,029 for the same period last year.

The question is now, how many car dealers will be closing down this year? If this trend was to continue there would be serious job losses in the sector.
My cousin works in the Car Sales Industry and he says its the worst he has ever seen it in the 25 years he has been selling cars.

And that was last September!
 

Pauli

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Sep 22, 2006
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1,181
Trevor's delighted


All those nasty cars....brrr. we haaaatessss them, haaaates them, dont we? yesssss....
In this kind of economic environment, it really brings home what a luxury the Greens are. A luxury the public cannot afford.

Also, VRT is an immoral tax which must be killed off asap. It's nonsnese.
 

CookieMonster

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Feb 19, 2005
Messages
34,801
And the kicker is because of VRT and also the fact that most car dealers now have lovely shiny new showrooms built over the last 5 years the prices on new cars won't fall all that much.
 

CookieMonster

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Feb 19, 2005
Messages
34,801
In this kind of economic environment, it really brings home what a luxury the Greens are. A luxury the public cannot afford.

Also, VRT is an immoral tax which must be killed off asap. It's nonsnese.
The Green/FF government would rather kill jobs before they kill taxes.
 

wysiwyg

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Joined
Jun 29, 2008
Messages
366
Was commented to me during work this week, that only two of us at a table of 8 had seen 09 cars so far this year.. I haven't yet..

But, I did look at used cars in NI because I wanted a price on a 7 seater... and in comparing 2 cars, I could make an 8k saving by buying in Antrim (with much higher spec), even after paying VRT...

Why would you buy a car in the Republic, when you can make an 8k saving (before haggling), for a 4 hour drive

Under those circumstances, the car industry down here is in real trouble... and the Govt cant afford to lower VRT
 

Catalpa

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Jun 10, 2004
Messages
10,301
It will be all about second hand cars going forward. Businesses who service / repair these vehicles should see expansion no? Perhaps the new car garage workers will re-direct their skills to maintaining the existing cars on the Irish roads... perhaps
We need to bring in highly specialised experts on this one - no use giving them to the feckless Irish workers who will demand a living wage and who have mortages and families to maintain.

I know - the Cubans!
 
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