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Thread: New car sales Plummet

  1. #1
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    Default New car sales Plummet

    According to breakingnews.ie,

    New vehicle sales plummet | BreakingNews.ie

    New vehicle sales fell by a staggering 64% in the first week of 2009, official figures revealed today.

    As the recession begins to bite, only 9,390 cars were registered in the first five days of January compared to 26,029 for the same period last year.

    The question is now, how many car dealers will be closing down this year? If this trend was to continue there would be serious job losses in the sector.

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    Quote Originally Posted by pfkf View Post
    According to breakingnews.ie,

    New vehicle sales plummet | BreakingNews.ie

    New vehicle sales fell by a staggering 64% in the first week of 2009, official figures revealed today.

    As the recession begins to bite, only 9,390 cars were registered in the first five days of January compared to 26,029 for the same period last year.

    The question is now, how many car dealers will be closing down this year? If this trend was to continue there would be serious job losses in the sector.
    It will be all about second hand cars going forward. Businesses who service / repair these vehicles should see expansion no? Perhaps the new car garage workers will re-direct their skills to maintaining the existing cars on the Irish roads... perhaps

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    Quote Originally Posted by Wakeupcall View Post
    It will be all about second hand cars going forward. Businesses who service / repair these vehicles should see expansion no? Perhaps the new car garage workers will re-direct their skills to maintaining the existing cars on the Irish roads... perhaps
    I accpet your point about second hand cars, but the amount of new car sales is usually an indication of how much disposible cash people have and 64% reduction in new car sales when compared to last year is a shocking figure and is an indication that people either don't have the money or are not willing to spend on what could be seen as a luxury item.

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    Time to abolish VRT. Like Stamp Duty it's a cash-cow in a boom but a jobs killer in a recession. Or will we just let the car business die too?

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    Quote Originally Posted by Wakeupcall View Post
    It will be all about second hand cars going forward.
    Well certainly if they go forward that would help sales.

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    Quote Originally Posted by pfkf View Post
    I accpet your point about second hand cars, but the amount of new car sales is usually an indication of how much disposible cash people have and 64% reduction in new car sales when compared to last year is a shocking figure and is an indication that people either don't have the money or are not willing to spend on what could be seen as a luxury item.
    There is still over 90% employment. This may decrease to 80%

    People will still have money. They will be less willing to spend and they will be trying to get the most out of things they already have, including their cars.

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    Trevor's delighted


    All those nasty cars....brrr. we haaaatessss them, haaaates them, dont we? yesssss....

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    Was commuting in and out of Dublin each day this week, and finally saw my first 09 reg car today in Navan, with a 09 LM reg. This is the first time that I can remember that the month had to go into double figures before I saw a newly registered vehicle....

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    Quote Originally Posted by Stroke View Post
    Was commuting in and out of Dublin each day this week, and finally saw my first 09 reg car today in Navan, with a 09 LM reg. This is the first time that I can remember that the month had to go into double figures before I saw a newly registered vehicle....
    Probably someone from the public sector.

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    People trying to sell 2007 cars with very low mileage are lucky to make 50% of their original price. Why would anybody buy a new car in that environment?

    I even heard of one dealer who sold a brand new €85,000 car for €42,000 cash on a Friday so he could pay the wages.

    And then there is a local dealer who had 180 new cars in stock for January, and only 24 of them sold so far.


    The problem, as I've said previously, is the contraction in the availability of money/credit due to the total collapse of the global finance system. According to the Central Bank we currently have about 20% less money in the economy than we had 12 months ago.

    I don't see removing VRT as being a solution to anything. The problem is with the buy now, pay later economic model we have abused over the last ten years.

    If all the spare money in the economy is going to pay down previously incurred debt, then there isn't going to be a whole lot left over to keep the car sellers in business - and that's assuming that the car producers are still in business in 2010.

    ..
    .
    "Always do right. This will gratify some people and astonish the rest." Mark Twain

    “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” Napoléon Bonaparte

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