FG: Car figures illustrate slump

THE 40% drop in the number of new cars being licensed was a graphic illustration of the downturn in the economy, said Fine Gael’s environment spokesman Phil Hogan.

There were 12,172 new private cars licensed in May 2008, compared with 20,232 in May 2007, a decrease of 39.8%. And first licensing of second-hand private cars decreased by 468 (8.4%) on the same month last year, the CSO revealed. The number of new commercial goods vehicles licensed in May 2008 was 3,219 compared with 4,780 in the corresponding month last year, a decrease of 32.7%.

“These figures suggest consumers were obviously aware of the impending recession while the Government stuck its head in the sand,” said Mr Hogan.

Faced with increasing inflation and a reduction in disposable income, those looking for new cars have decided to batten down the hatches instead, fearing for the economic future, he said.

“There is also massive confusion... over impending changes to Vehicle Registration Tax which become effective from July 1. The decision by Brian Cowen as Minister for Finance and supported by John Gormley, Minister for the Environment, to select mid-year for changes in vehicle taxes has had a devastating impact on motor purchases,” said Mr Hogan.

The vehicle licensing figures also show that in May 2008, the total number of all vehicles licensed was 25,268 compared with 35,717 during the same month in 2007, a decrease of 29.3%.