AN IRISH car dealership has surprised the industry by establishing a company specifically to import used cars from the UK.
HB Dennis has franchises for Volvo, Hyundai and Land Rover but the group’s chief executive, John Dennis, said he had been left with no alternative but to offer used imports.
“New sales are down 66 per cent. . . There are dealerships closing down every week and we think the new car market could drop to just 50,000 this year,” he said.
Irish dealers are struggling to sell new cars. In the past eight years, new car sales have averaged at about 150,000, so a drop to 50,000 would represent a two-third drop. Imported second-hand car sales have increased over the past four years, from less than 2,000 to well above 5,000 last year and HB Dennis said second-hand sales may outnumber new car sales by the end of 2009.
Dennis said his premises in Swords will have 300 used imports on view and he estimates they will be 10-15 per cent cheaper than similiar Irish cars because of the current sterling rate. Sales staff will be price checking every day with the aim of having their cars in the top 10 lowest prices.
“The customer won’t have to do anything, like registering the car or paying VRT. That is all included, as well as a full two-year guarantee, a signed full service history and certified mileage. We will stand over the cars.”
Dennis conceded companies and other dealers will have problems with his imports. “I am sure some people won’t be happy, but this is a new open market being created. I have also signed up two other dealers – one in south Dublin and one in the midlands – who want to go the same way,” he said.