New car sales up 51% despite modest scrappage scheme uptake

The latest new car registration statistics from the Motorcheck.ie Car Index shows a rise of 180% for April 2010 when compared to the same month in 2009.

The statistics show that the overall total for new passenger cars registered in 2010 (51,450) is up 51% against last year and now just over 4,000 registrations behind those registered for the entire year in 2009 (55,578).

Commenting on the latest figures, Shane Teskey, co-founder of Motorcheck.ie said: "Whilst this is certainly good news for the industry, it should be remembered that the majority of new car sales are concentrated into the first three months of the year and this year's figures will be inflated by those availing of the Government scrappage scheme.

"Indeed our statistics show that despite the scrappage incentive the slow-down has already begun with sales for April already dropping 38% on those registered in March."

According to a statement made by Sean Haughey to the Seanad last week, more than 4,500 scrappage claims have been processed since the scheme was introduced by Government at the start of the year.

Whilst this has had a positive impact on sales, as a percentage of the national figure, the numbers opting in to the scheme (less than 4% of those qualifying) are relatively low.

"Our analysis shows that in the first four months of the year there were over 120,000 cars on the road that qualified by virtue of age alone for the scrappage scheme," said Teskey.

"The latest information from Government shows the number of cars processed to be in excess of 4,500 making the uptake a relatively modest 3.75%".

According to Motorcheck, a further 106,000 cars will qualify for scrappage as the year continues.

This means that the industry could expect approximately 4,000 additional sales to come directly from the Government incentive.

If that number is achieved and car sales hit a forecasted total of 75,000 for the year, the scrappage incentive will have accounted for 11% (8,500) of total new car sales.

"The industry is depending on customers continuing to avail of scrappage at the same or greater rate as the year progresses," said Teskey.

"However, as the economy continues to suffer and a lack of credit for new car purchases continues to hamper sales, maintaining a strong focus on 'value for money' with scrappage and other incentives will be critical to keeping momentum up as the year continues."