Cars sales off to a shaky start for 2017

Written 2 years ago by Rebecca Donnelly


 

 

 

 

 

Top 5 selling models for January were

  1. Hyundai Tucson,
  2. Ford Focus,
  3. Ford Fiesta,
  4. Nissan Qashqai,
  5. Volkswagen Golf.

The SIMI released figures today that suggest that we might be in for a shaky year when it comes to new cars sales. January tends to set the tone for the rest of the year’s figures and this year it’s down by 1.7% on last year’s numbers.

Jim Power Economist and author of the Review said “Looking ahead to 2017, while the outlook for car sales is a bit more difficult to predict than last year, the projected growth in personal disposable incomes and the availability of credit provide solid support for car sales. However, the impact of Brexit and the increased volume of imported used cars are other issues that may impact on new car sales this year., Overall, though, numbers should be fairly close to last year with perhaps a slight decline of around 3% in new car sales in 2017, which would imply new car sales of around 142,000.”

With Brexit looming and financial uncertainty in Europe, it’s a tough market for the local dealer to operate in. Getting finance to buy in stock is hard enough but there’s a major shortage of decent used cars out there which means it’s increasingly hard to encourage buyers onto forecourts.

The SIMI were trying to keep the message one of quiet positivity as Alan Greene SIMI President commented “The Motor Industry continues to be a strong contributor to employment with 40,800 people employed throughout Ireland. Last year our Industry contributed €1.5 Billion to the Exchequer in car sales alone. 2017 was always going to be a more cautious year for businesses, right across the economy, but we have seen a steady start in January and hopefully we are on track for another good year and continuation of a stable market during the rest of the year”.

The last thing the car industry needs now is any surprises and so that ‘steadiness’ that Mr Greene spoke about is more than welcome for most dealers. The running costs associated with cars is something else that the public is very concerned about as the Government show no signs of lowering the cost of fuel by changing some of the taxes.

One thing is for sure, this year will be a big test for the motor industry in Ireland as we might be losing one of our most important allies if the UK get out of Europe completely it’ll make it complicated for Ireland to get any decent discounts

Only time will tell.