Car sales hit brakes after 41% drop in purchases last month

NEW car sales are slowing to a halt after a 41% drop in models sold last month.

Despite a temporary boost in vehicle sales after the introduction of tax incentives for greener motoring, consumers are shunning car showrooms.

Figures for August reveal 5,252 new cars were sold compared to 8,991 in August last year.

Overall, sales for the first eight months of the year (145,643) were down 16.71% on the same period in 2007 (174,866).

Commenting on the results, director-general Alan Nolan, of the Society of the Irish Motor Industry (SIMI), said it was “proving to be a challenging year for the industry”.

It is anticipated that new car sales for the whole of 2008 will finish at around 150,000. That means less than 5,000 new car sales are expected between now and the end of the year.

Figures from the motor trade society show sales of new cars dived for some models. Land Rover sales for the month fell from 72 to just seven, while new Lexus car purchases went down from 71 to 20.

Sales of Mercedes cars fell from 270 in August last year to 76 this year. Purchases of models that sell in larger numbers were visible in the drop in sales of Toyotas and Volkswagens, which fell by about half.

The SIMI has pointed out, however, that despite the fall off in new sales, there are great opportunities for consumers in the second-hand market.

“There really has never been such choice and incredible value in used cars as at present,” read a statement.

The motor sales vehicles also shed light on a drop in work-related motor purchases.

Light commercial vehicles like Fords and Nissans for the first eight months of 2008 (27,302) are down 29.28% on the same period compared to last year (38,604).

Heavy vehicle registrations like Volvos are also down 26.52% (3,237), compared to the same period in 2007 (4,405).

Mr Nolan said: “While much of the talk regarding the economy is negative, it is important to point out that business is still being done and consumers have never been in a better position to get real value for money from the quality used car market.”