15% drop in new car sales in Galway

A significant drop-off of almost 15% in the volume of new cars sold in Galway so far this year has been attributed to uncertainty over Brexit.

The Society of the Irish Motor Industry (SIMI) trade representative body said consumers are reluctant to buy cars because they have financial pressures from increasing house prices, rents and home and health insurance.

The first three months of 2017 saw 2,961 new cars registered in Galway City and county – down from the 3,472 registered in the same period last year.

Data from SIMI and the DoneDeal website shows that every county in Ireland saw a drop-off in new car sales during the first quarter – nationally the average rate of decline was 8%.

For comparison, Dublin saw a 1.7% decline to 29,608; Limerick just under 14% decline to 2,751; Cork a 9% drop to 9,902; Waterford a 7% drop to 2,171 and Kilkenny a 13% decline to 1,490.

According to DoneDeal, 8,164 car ads were placed on their site from Galway in the first three months of 2017, with combined asking prices of over €79.7 million.

Economist Jim Power, who prepared the SIMI report said: “Consumer behaviour remains relatively cautious. Personal expenditure on big ticket items such as cars is being undermined by the ongoing upward pressure on the price of necessities such as motor and home insurance, private rents, private health insurance and housing.

Based on sales so far in 2017, it is possible that registrations for the full year could be 10% down on 2016. But it has to be stressed that the market is not very predictable at the moment,” said Mr Power.

Alan Nolan of SIMI said uncertainty over Britain leaving the EU is having an impact on the motor trade.

“The decline in new car sales has been a nationwide trend, and the motor industry in Galway is no different,” he said.

The top selling models are the Hyundai Tucson, the Nissan Qashqai, the Ford Focus, Skoda Octavia and VW Golf.