Sales of new cars fall by 77%

New car sales were down by 77 per cent last month over the same period in 2008, the Society of the Irish Motor Industry (Simi) said tonight.

Simi said 3,759 new cars were registered last month, down from 16,386 in July 2008.

Total sales this year to date stand at 50,530, representing a 64 per cent decrease on the same period in 2008.

However, Simi’s Brian Cooke said the decrease was not as “dramatic as it may appear” and was in line with forecasts.

Mr Cooke said the fall in sales can be attributed to the introduction of the Government’s C02-based VRT changes in July 2008, which resulted in many buyers holding

off on their new car purchase until after the changes were introduced. He said there was a “significant increase” in new car registrations after the VRT and road tax rates were changed.

He said while there has been an increase in the used car activity in dealerships recently, the lack of available finance is still a “major cause for concern and frustration for our members”.

The figures show the number of imported used car registrations for last month, at 3,641, were down 50 per cent on the same period last year. For the year to date, the number of used car imports is down over 15 per cent over 2008.

Sales of light commercial vehicles are down 41 per cent compared to July 2008, while heavy vehicle registrations have fallen by 69 per cent.