New car sales plummet in first quarter of year

New car sales have plummeted in Offaly by over 37% in the first three months of this year, it was revealed this week.

This is significantly larger than the national figure of 14%. Larger than average drops were also recorded, however, in neighbouring midland counties Laois, Westmeath and Longford, with Longford recording the largest percentage drop - 40.12% - in the country.

The figures, released this week by the Society of the Irish Motor Industry (SIMI), show that nationwide 39,511 new cards were sold in January, February and March of this year, compared to 45,840 during the same period last year. SIMI director general Alan Nolan said the data for the beginning of the year is particularly telling.

“The first quarter of the year is always a crucial period for the motor industry,” he said. “Traditionally, it is a good indicator of how sales will perform for the rest of the year. Half of all new car sales are usually done in the first three months of the year. Based on current figures, we’re predicting a new car market of 70,000 this year, slightly down on our original expectations.”

Mr Nolan added that low sales this year are likely to lead to a more conservative view of next year’s market, which will impact on tax revenues in 2014. However he said right now the news is good for those in the market for a new car.

“At the moment, though, all of this is good news for the consumer with very strong offers available on new cars and with a shortage of good quality used cars in the market-place, trade-ins are in huge demand.”

In Offaly 498 new cars were sold in the first quarter of this year, down from 794 during the same period last year. While in 2012 Offaly new car buys made up 1.51% of the national share, this year that figure has dropped to just 1.26% of the national share.

In Laois sales in the first quarter of 2013 are recorded as 495, down from 665 in 2012 - a 25.56% drop. In Westmeath 739 new cars were sold in the first three months of this year, down from 739 last year - a drop of almost 20%.