Sales of new cars up 24% in Galway this year

NEW car sales in Galway increased by nearly 24% in the first quarter of 2014 compared to the same period last year, according to the latest figures released by the Society of the Irish Motor Industry (SIMI).

During January, February and March of this year, 2,070 new cars were sold across Galway city and county, as compared to 1,672 for the same period in 2013 – an increase of 23.8%.

Greater consumer confidence, a highly competitive range of new car deals, and a flattening out of motoring costs, are some of the main factors responsible for the sales hike, according to industry sources.

David Hogan, Managing Director of Hogan Motors in Ballybrit, told The Sentinel that his Hyundai sales were up 30% so far this year as compared to last year.

“There is a lot of value to be had out there, both in the price of new cars and also in the service and warranty packages that are being provided. People do need to change their cars and many of them have decided to make the move this year,” said David Hogan.

He added that there was a renewed confidence in the car sales business since the ‘blackest year of all’ – 2009 – when car sales plummeted across the country during the lowest point of the Celtic Tiger collapse.

“Since then, there have been small but steady improvements but really this year the increase in sales has taken off. The 141 reg. sales have continued on through April and May and we’re confident of a strong take-up for the 142s from July 1 onwards,” said David Hogan.

Economist Jim Power, who compiled the first quarter price review for SIMI and DoneDeal, said that the Galway and national figures showed that the motor industry was ‘back in growth mode again’ after what had been a period of dramatic decline in fortunes.

“Already this year, the Irish Exchequer has taken in over €453 million from new car sales, representing 5% of the country’s total tax revenue for the first quarter,” said Jim Power.

Alan Nolan, Director General of SIMI, said that after six extremely tough years in Ireland for the motor industry, the projected figures for this year were very positive.

“The cost of a new car is down, the cost of fuel is down and the government has also helped the industry by keeping tax levels stable in the last budget,” said Alan Nolan.

For more, read this week’s Connacht Sentinel.