The motor industry has called on the Government to introduce a new vehicle registration system to prevent the New Year rush by car buyers, writes Daniel Attwood
With the double-digit prefix indicating the year a car was first registered, New Year plates have become Ireland's must-have status symbol.This is why over half of all new cars are sold in the first three months of the year, and why over 70 per cent are sold by the start of June.
Figures published by the Society of the Irish Motor Industry (SIMI) reveal the yearly front-loading of registrations continues unabated.
New car sales last month came to just 12,188 while sales in January were 42,831. Overall year to date sales for new cars are 157,008, up 5.16 per cent on the same period last year.
This rush for new vehicles causes problems for the industry and for car buyers. By the end of January, huge numbers of traded-in cars depresses the second-hand market causing a slump in values, which is bad news for motorists.
Dealers are also under pressure to hand over thousands of new cars, meaning they often spend less time than is necessary explaining the car"s details to customers.
In addition, vehicle importers must ensure new models are launched in time for the January rush. Miss that, as Fiat did earlier this year with its new Grande Punto, and sales will suffer.
Importers must also order cars based on predicted demand and these forecasts can be thrown into disarray if, as happened in 2003, the Minister for Finance alters the Vehicle Registration Tax rates in the December Budget.
Now many in the industry are saying it is time for a new system to even out sales through the year. Cyril McHugh, chief executive of SIMI, the motor industry representative body, says the current system must end.
"There is no doubt it is causing problems, it is telescoping more sales into the first quarter of the year. It would be far better for everybody if there was a system that maintained sales throughout the year," says McHugh.
Many in the industry would prefer a six-month system similar to that in Britain, which moved away from once-a-year registrations in 2001.
Sean Green, managing sirector of BMW Ireland, says: "Whilst the current system provides clarity for the consumer there is no month indicator, which means there could be a difference of 12 months between vehicles showing the same year indicator."
A new system, he says, would allow for a more balanced sales pattern and would have several benefits for the consumer, including improved residual values.
Indeed, a month indicator would be the obvious solution says Gerard O'Farrell, managing director of Jaguar Ireland. "It is a shame when we moved from the old system that there was a little more thought put into the new one," he says.
He also suggests used car buyers stop focusing so heavily on the year prefix. "We often recommend an older carthat has a complete service history and a lower mileage than a newer car with a poor service history."
However, there are those in the motor industry who say the registration system should be left alone.
Tom O'Connor, sales manager at Volkswagen, believes the current system still has more benefits than downsides.
"We are the envy of Europe -- we have a registration system that is crystal clear, it says the year of the car and where it was registeredthere is a lot of merit in its clarity and I would not be supportive of a change to something more ambiguous."
Frank Kennedy, Honda Sales Director, says that while the industry would see huge benefits in a twice-yearly registration system, the car buyer may not see the benefit: "It would be advantageous to dealers to have second bite of the cherry, but for the consumer, that's another matter."
While the industry debates the merits of changing, the Revenue Commissioners has dismissed any talk of change: "We are not considering any plans to move away from it. The current system provides a high degree of transparency."