Figures show slowdown in new car sales

The latest figures from the Motorcheck.ie car index show that an early increase in new car registrations experienced in January has fallen back from 28% to just 4.7% for March.

This indicates a return to levels much closer to those recorded in 2010.

New car registrations got off to a promising start with figures for January showing a 28.4% increase on 2010.

Numbers for February however demonstrated an immediate decline finishing just 3% ahead of the previous year and the latest statistics for March continue the trend with an increase of just 4.7% for the same period last year.

With the January rush cumulative statistics for the year show an increase of 13% overall for the first quarter, but industry analysts Motorcheck.ie suggest that 2011 will prove to be another difficult year for car dealers.

Shane Teskey, Managing Director of Motorcheck.ie said a lack of car finance is having a knock on effect in the industry.

Mr Teskey said: "2011 has been a very difficult year for the leasing industry in particular. A lack of finance facilities for Contract Hire (the preferred method for financing company cars) has meant that smaller leasing companies are unable to fulfill actual orders on their books.

"Until this is addressed new car registrations for both private consumers and business customers will continue to be seriously hampered."