The Irish car industry has not seen very good sales figures since January 2009. The initial twenty days of 2009, in fact, saw a deceleration in sales. The used cars import attraction offered by dealers in Northern Ireland is believed to be causing a lot of imbalance, and many dealers are protesting and wanting the Government to restore parity. They also feel that the tendency to import used cars from the UK is having an effect, and the Irish motor industry is bearing the brunt.
The Northern Ireland cars industry has not been good, thanks to the economic recession. The consumer too has lost confidence as to whether they will be able to pay their monthly car loan repayment on time.
Moreover, lack of credit availability has been another factor that has reduced purchasing power. There are many dealers in Northern Ireland who report that close to one third of the retail business is taken by Southern Ireland, where they are able to fetch a better price for their used southern cars.
This increased activity in the form of part exchange vehicles from the State is also one of the main reasons for the Northern Ireland cars industry suffering the way it is. Moreover, they feel that this rush to purchase cars at a bargain could end up in a buy that will not find support if it is one that is not retailed here. This could cause problems in the event of a breakdown, as the UK model bearing a milometer that is different will not find immediate buyers and the car valuation could be severely impacted.
The issue of car finance is another where it is felt that dealers in the South would be able to assist the customer - and the same would not be possible in the North. Dealers also feel that customers are being short sighted in the rush for Northern Ireland cars and do not understand the ramifications of short term benefits.
They feel that they would be able to offer equal discounts and better customer service and they only want the customers to talk to them before venturing north. They even cite examples of specific models where they are far more competitive to their Northern Ireland counterparts.
The dealers also feel that, notwithstanding this competitive pressure from Northern Ireland cars due to lower prices, the scrappage scheme needs to be introduced at the earliest as it is likely to boost demand, as it did the last time, and though they do not anticipate the same tear away success, they feel it can do a great deal to stimulate activity and help their cause.
They feel that since the Government revenue from the motor industry by way of less VAT and VRT is also getting impacted, it is in the common interest to do something and generate demand. Some have recommended a reduction in the VAT percentage on UK lines so that the customer is benefitted to some extent and there is buying interest.
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