PRESS RELEASE – 2014 May Be A Bumper Year for Car Sales

PRESS RELEASE

2014 MAY BE BUMPER YEAR FOR CAR SALES

Research Points to Two-Tier Auto Market

Car History Check expert Cartell.ie reports today (02 October 2013) that 2014 may be a bumper year for new vehicle sales given the right incentives – due to an overhang of 42,000 vehicles which ordinarily would have traded-up in a pre-recessionary market environment.

In the biggest research sample of its kind Cartell.ie reports the recession has created a two-tier automotive market in Ireland:

1/ Vehicles purchased on or after 2009 (post-2009 vehicles) are changing hands at the rate ordinarily expected of motor vehicles in Ireland – where a first owner sells the vehicle between 3 to 5 years generally due to auto-finance terms.

2/ Vehicles registered between 2005 and 2008 (pre-2009 vehicles) are not changing hands as owners hold these vehicles longer. This is therefore increasing the average age of the fleet in Ireland and lowering the average number of owners for vehicles in these registration years.

Cartell.ie reports that owners of pre-2009 vehicles are finding it increasingly difficult to offload their vehicle and re-enter the market for a newer vehicle. This result is based on analysis of market transaction and ownership figures for used vehicles in Ireland. The company found that 34% of all indigenous 2008 vehicles (i.e. vehicles first registered in Ireland excluding imports) are still on their first owner. This is higher than the comparable figure for 2009 vehicles, which stands at 31%.

Simi “Swappage” Scheme – potential impact on market

The results of the Cartell.ie analysis show the market is ripe for the introduction of a VRT swappage scheme, or an equivalent scheme, as owners of pre-2009 vehicles struggle to purchase a new car. Cartell.ie welcomes the proposal to introduce a vehicle “swappage” incentive to market. A swappage scheme, whereby a VRT rebate of up to €2,000 would be given to the purchaser of a new vehicle where a vehicle 6-years or older is traded, would encourage owners of pre-2009 vehicles to trade-in their vehicles next year – in 2014.

The research also found that owners of vehicles first registered in Ireland in 2005 had no difficulty in offloading those vehicles and re-entering the market before the recession – just 14% of 2005 vehicles are still on their first owner.

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