THERE HAS been a strong positive reaction from the public to the new Government-backed car scrappage scheme, according to dealers and distributors, who say there is already an increase in footfall in dealerships.
“It is very early days, but there is now a noticeable air of hope in the industry,” says Alan Nolan, director general of of the Society of the Irish Motor Industry (SIMI). “We would be hopeful of seeing an increase of about 12,000 cars in 2010.
“Obviously finance remains a problem for some, but there are significant numbers of savers . . . Members are reporting a significant pick-up in interest.”
Several distributors are also reporting a spike in interest in new cars for 2010, partly because of the scrappage scheme.
Volkswagen Group Ireland's managing director Paul Willis told The Irish Timeshis dealers had received more than 300 orders for Seat cars since they took over the franchise from the OHM group in November.
“We are cautiously optimistic about next year . . . we should see some growth.” Willis also pointed to the success of the Polo as European Car of the Year as important and said they have done about 50 deals so far through the new lease scheme.
Julien Le Lorrain, marketing manager of Renault Ireland, said the reaction to the scheme has been positive. Renault started its own scrappage scheme in September and he said Renault intends to honour existing discounts for some time to come.
Most firms are now offering extra discounts on top of the scrappage offer. Hyundai is the latest, with €2,000 off its i10 and i20 models and between €2,500 and €3,000 off the i30 range. Its i10 models start at €8,495 when involved in a scrappage deal.
It has also been announced that Paraic Mooney will open a new Hyundai franchise from next Monday at the former EP Mooney site on the Long Mile Road, Dublin.
Mooney, who has been in the motor business since 1973, owns the premises through his property firm. It is separate from the EP Mooney motor retail business that went into liquidation last month.