Consumers waiting for VRT changes before purchasing new cars

A new survey from National Irish Bank reveals that 42% of Irish consumers who plan to buy a car in 2008 will wait until the new Vehicle Registration Tax (VRT) and motor tax regulations announced in the recent Budget take effect in July.

The survey also shows that consumers are getting ready for the move towards energy-efficiency with 72% stating that following the introduction of the new regulations, they are likely to, or will definitely consider buying a diesel-powered car rather than a petrol-powered car, thereby decreasing their CO2 emissions.

The key findings include: 60% of respondents intend to buy a car in 2008, with almost 44% intending to buy a used car; 42% of potential buyers will defer purchase until new regulations take effect in July; 72% to consider diesel over petrol power; almost 80% have car engines between 1,000cc and 1,900cc; 71% spend less than €20,000 in total on their purchase, with 57% getting a loan from a bank, credit union, motor dealer or building society. 27% use savings.

Commenting on the research, Brendan O’Hora, head of communications for National Irish Bank, said: "This year’s Budget change regarding vehicle registration tax has raised awareness of the environmental impact of road vehicles. Today’s survey shows the effect that this will have on the car industry throughout the year. There is no doubt that the July changes will have led buyers to defer their purchase until later in the year, possibly impacting the normally busy first quarter rush."