Used-car imports soar in crippling blow to dealers

robbie99

Following article is in today's Indo with some interesting figues...

THE number of used-car imports nearly doubled in one month this summer, according to new figures.
The dramatic surge stems mainly from cost-conscious buyers looking elsewhere for lower prices as the credit crunch bites coupled with a 20pc fall in the value of sterling.
But the big increase deepens the crisis for Irish dealers, who have thousands of cars they can't sell while jobs in the trade are coming under intense pressure.
Meanwhile buyers are in an historically powerful position to pick and choose what and where they buy.
Ironically, the figures show that in July, the month the emissions system kicked in for new cars, there was a 16pc drop in used-car purchases here but the number bought abroad nearly doubled.
The data, compiled by car history check website Motorcheck.ie, shows that 85,181 secondhand home market cars were sold here in July 2007, but that figure plunged to 71,813 this July. But the number of used imports went from 7,980 (9pc) in July 2007 to 12,522 (17pc) for the corresponding month this year.
Biggest
Some of the big name cars showed biggest import increases. For example, the number of Audis brought in during July 2007 was 483 while the figure for July 2008 was 993 -- an increase of 510.
Imported BMWs for the corresponding months went from 728 to 1,138 (up 410) while Volkswagens rose from 763 to 1,514 (up 751). Such is the volume of imports that potential buyers are being urged to give Irish dealers a chance to match the prices they are being quoted for comparable models abroad.
Official Revenue Commissioner figures obtained by the Irish Independent show that 59,539 used cars were imported last year.
The number imported up to the end of August this year is 45,539, but there are predictions imports could top 90,000 before the end of the year.
The industry here has claimed that a massive and largely unregulated grey market exists whereby so-called 'private' buyers brought in cars from England and sold them on.
The Revenue Commissioners deny there has been such abuse of the system.
Motorcheck.ie director Shane Teskey said last night the introduction of new VRT bands for vehicles being registered here for the first time (new cars and used imports) has encouraged buyers to look to the UK for cheaper secondhand motors.
He said: "UK imports are up where the car in question now benefits from the lower rate of VRT against its Irish equivalent."
Gloom
But while the trend spells gloom for Irish dealers it should mark the potential for real value for buyers. Mr Teskey said: "The value in used cars in this country is better than ever as prices have had to fall to see off the UK competition.
"This, added to the slump in used-car sales, means would-be used-car buyers can negotiate very attractive deals in Ireland."
The advice is that motorists should not be put off by the price advertised on used cars here. There is always room for negotiation. Mr Teskey says buyers should shop around and discover the best deals out there before rushing off to the UK.
Buyers are also being reminded that there are often considerable expenses involved in buying abroad, including travel and import costs. Distance can pose a real headache if the car develops a problem.
However, it is apparent from the figures that buyers are continuing to vote with their cash.
According to Motorcheck.ie, a London-based vehicle dealership now has 4,010 cars marketed specifically at Irish customers and has a section dedicated to 'How to import your car'.
Buying a used car abroad means you have to pay VRT when you bring it in here. But the VRT is based on the price of an equivalent car on sale in the Irish market, not on the sum you have paid for it.
- Eddie Cunningham Motoring Editor

http://www.independent.ie/business/irish/usedcar-imports-soar-in-crippling-blow-to-dealers-1472798.html