The Motoring Industry & The Recession

[the 12 th man]

Anyone spot one yet?,not me anyhow and I'm on the road a lot.Normally you'd see dozens within a couple of days of the new year.


New car sales were down 60% in 2008 on 07 figures in Ireland.

[centre mid]

spoted my first one yesterday around blancharstown centre. I think it was in the 600's, Dublin reg.

[pete]

Seen 09 C 291 & also a pic of 500+ D reg.

No sympathy for car dealers as means they have to slash their used car prices to more realistic prices.

[atfconline]

I didn't think the number on the plate was linked to when the car was registered anymore?

[pineapple stu]

I didn't think the number on the plate was linked to when the car was registered anymore?

Course it does.

No sympathy for car dealers as means they have to slash their used car prices to more realistic prices.

Realistic prices are what people will pay. Car dealers are getting raped on used cars since the VRT changes, and will do for some time yet, unless they go out of business first, as many are doing. But trust socialist Pete to have "no sympathy" for local businesses without doing any sort of back-up thinking.

[prince20]

I have just picked up my new car this morning,
09 D 968

[pete]

Realistic prices are what people will pay. Car dealers are getting raped on used cars since the VRT changes, and will do for some time yet, unless they go out of business first, as many are doing. But trust socialist Pete to have "no sympathy" for local businesses without doing any sort of back-up thinking.

I suspect dealers are in trouble due to the exchange rates & overall economic situation in the country as people don't buy cars when losing their jobs. If they drop the prices of used cars they will sell them. I am looking myself at the moment as probably never a better time.

[pineapple stu]

No, they're in trouble because the VRT changes meant their stock of, say, E2m is now only worth E1.4m and they have to take huge hits on cars to get rid of them. This has been happening for almost a year now.

I don't see how exchange rates could possibly have anything to do with it.

[KevB76]

I've only seen one 09 so far, other years I've always seen 3 or 4 by 2nd/3rd Jan.

[KevB76]

I don't see how exchange rates could possibly have anything to do with it.

Here's an example my brother was on about a few days ago;

Nissan Quashquoiwhatever, around €25000 here, about £15000 in UK - at the moment thats about €15000. VRT is approx €4600 on this car, so buy in the UK and import, you save around €5000.
The longer strerling remains weak, the more and more people will cop on to this and buy their cars across the water.

[pineapple stu]

But that's all well and good in theory; in practice, people aren't doing that (except maybe near the border), so it's not causing the decrease in used car prices.

[pete]

No, they're in trouble because the VRT changes meant their stock of, say, E2m is now only worth E1.4m and they have to take huge hits on cars to get rid of them. This has been happening for almost a year now.

Everyone has taken a hit on that as trade ins or now also worth less.

I don't see how exchange rates could possibly have anything to do with it.

With sterling almost at parity with the Euro it makes it a lot more attractive to import new & used cars.

Ultimately dealers need to shift their used stock & the only way that will happen is with lower prices even if they have to make a lose.

[pineapple stu]

Everyone has taken a hit on that as trade ins or now also worth less.

No sympathy for them having to slash their used cars to more realistic prices.

With sterling almost at parity with the Euro it makes it a lot more attractive to import new & used cars.

But people are lazy and the vast majority won't bother.

[soccerc]

But that's all well and good in theory; in practice, people aren't doing that (except maybe near the border), so it's not causing the decrease in used car prices.

It's happening and Northern dealers are actively seeking business from the south.

Here's an example of the Qashqai with a €5k saving

[pineapple stu]

They can offer alright, but my point about people being lazy still stands.

I work in the motor trade; people going to the north or to England isn't the cause of our problems at present.

[paul_oshea]

know a lad whose auld boy bought an avensis over here for £6699, bringing it straight home and VRT is only 2700 euro.

[soccerc]

They can offer alright, but my point about people being lazy still stands.

I work in the motor trade; people going to the north or to England isn't the cause of our problems at present.

Stu, my point is, I am aware of that deal because someone I know travelled norht last week and bought one, delivery is tomorrow, registered, Vat and VRT paid to his Dublin address.

Word of mouth will soon spread the deals and anyohne who has any sense, even if lazy will seek out the best deal for their pocket.

Last year I changed and the dealer whom I previously purchased two new cars just didn't want to deal, I travelled 50 miles away and saved almost €3k.

I then told others of how I was treated by both and do you know what? the country dealer has since sold a few new cars to friends and rang me one day to thank me for recommending and offered a free full service on my car which he followed up in writing.

That's service

[pete]

Here's an example of the Qashqai with a €5k saving

When a NI dealer quotes Euro prices complete with VRT & paperwork included importing will look more tempting.

SIMI are lobbying the government for crackdown on people not paying VRT on imports as well as new scrappage scheme.

[soccerc]

When a NI dealer quotes Euro prices complete with VRT & paperwork included importing will look more tempting.

Pete

That price (in the link) is in Euro with Republic of Ireland VAT and VRT paid and offers a saving of €5k on a Qashqai 1.5 dci Visia

[pineapple stu]

Word of mouth will soon spread the deals and anyohne who has any sense, even if lazy will seek out the best deal for their pocket.

It really won't. There'll always be the few smart ones, but most people won't. The same was said when the euro came in - now that we have perfect price transparency, we can see the best deals and buy at the cheapest prices across Europe. Nothing much changed though. (As an aside, too, Irish garages are importing as well, which negates the effect somewhat).

The thread was originally about the lack of '09 cars; that's true and down primarily to the recession. Other facts mentioned include the decrease in new car sales last year (true; down to the VRT changes which caused people to postpone January orders to July to save a few grand, and then to postpone again to January to get an '09 car) and the reduction in used car prices (true; down to the VRT changes also; basically, most cars dropped in value in July, which led to a situation where a new car was worth almost what a one-year-old model was. This by necessity resulted in a similar price shift in the used car market, which is what has everyone in trouble; essentially, any stock held around July was an instant loss maker).

Currency fluctuations between euro/Irish pound and sterling have happened before and will happen again; they're not, as Pete suggested, the main, or even a significant, cause of the problems facing the Irish car market today.