Sunday, March 11, 2012

11/3/2012: New Car Sales - no sign of improving demand

Recently released data for new vehicles registrations for February 2012 shows continued lack of demand for durable / large-ticket items in Ireland. Here are the summaries - all data refers to the cumulative January-February sales for each year referenced (note, CSO does not provide seasonal adjustments, to yoy comparatives is all we have to go here on):

Pretty abysmal. The uptick in demand in 2011 is now appearing to be exhausted, despite the fact that many in the industry have expected a rise in 2012 registrations due to 2013 license plate effects.

Please, note - this flies in the face of the anecdotal claims that there are thousands of wealthy cash buyers holding back on domestic investment, as large ticket items demand is usually strongly correlated with domestic investment. In January 2012, car prices fell 2.4% yoy in Ireland, following a 2.6% annual decline in prices in December 2011 and 3.5% drop in November 2011. In other words, prices are going down, and demand is going down as well. Not exactly 'thousands waiting to pounce' on better deals, then...


Anonymous said...

Reducing Irish car Sales reflect a maturing society. This is a good thing.

As we dont make cars in Ireland we should be at least below the average car life of Germany approx 8.5 yrs. This is especially as we now have the NCT (Vehicle testing) to assure car safety.

We have some way to go yet to reach 8.5 yrs average car life.
US are at 10.2 yrs.

Artificial promotion of new car purchases illustrates economic illiteracy. It is import substition we need .... Irish jobs not foreigh manufacturing jobs.

Motor Tax system needs reform to promote car life longevity.

ray said...

Car Tax Petition

Reform the Daft Irish Car Tax Law.

Sign the ePetition here:-