Heed bubble warning on car credit offers

IN a materialistic world, there are few things as seductive as the smell of a new car. 

Buying one can be exciting and reaffirming. In a world threatened by ever more dire consequences of climate change, the impact of transport on our environment grows, despite advances in technology. In a world battered by overly generous credit arrangements, car sales are one of the drivers of domestic banking and, apart from mortgages, make up the lion’s share of personal credit.

The sale of new cars grew by 28% in the first quarter of this year: 82,780 units were registered, a spectacular increase on 2015’s 64,488. Another boom year is predicted and it is expected that 140,000 units will be sold, consolidating 51 months of high growth in the new car market and two consecutive years in which increases of 30%, year-on-year, have been achieved. These figures are so spectacular, almost like Anglo Irish Bank growth figures of old, that they must give pause for concern.