Provisional sales figures for January have revealed that a record number of cars has been sold in the first month of 2006. The number of new cars sold in January has even far exceeded those sold in the first month of 2000, which went on to be the most successful year ever for the motor industry.
Total vehicle sales for January 2006 have reached 55,000, which is more than 10 per cent higher than in 2000.
Currently, new vehicle sales are up 15 per cent on last year and, if sales continue at this pace, Irish dealers are set to enjoy another bonanza year with sales of passenger cars predicted to exceed 200,000 - only the second time this has ever happened.
Earlier predictions for new vehicle sales for the year were put at between 180,000 and 190,000, but these predictions are now being revised upwards following the release of sales figures for the first 30 days of the month. "Our full-year forecast was 190,000, but given the January boost, it is quite logical to see a full-year volume closer to 200,000," said Eddie Murphy, managing director of Ford Ireland. "The maturation of SSIA monies is still spiked towards the backend of the period ending March/April 2007, but what we are seeing is consumers spending on foot of this windfall."
It will be later today before sales figures for the full month of January are known, but it is already clear that records are set to be broken across the board.
Of the 53,000 new vehicles sold in January, the vast majority - about 42,000 - are new cars, which beats the previous record of 41,878 set in January 2000.
But while car sales dominate interest, light and medium commercial vehicles sales have also reached record levels during the first month of the year, which means there is more than just SSIA money impacting on new vehicle sales.
It had been predicted that as much as €1.2 billion of SSIA payouts would be spent on new and used cars over the 12 months from May this year. However, such high registration figures so early on in the year suggest that some motorists are borrowing on the strength of their SSIAs, and buying their new cars now.
Statistics also reveal that a pattern is emerging of motorists buying their new cars earlier each year, which could also account for the record sales this January. Sales are now so top-heavy each year that almost two-thirds of all new cars are sold in the first four months of the year, and one-third are sold in the first two months.
The news that sales are soaring in Ireland at the beginning of 2006 comes on the back of Europe-wide statistics that reveal that Ireland had one of the fastest-growing new car markets in Europe in 2005.
While sales continue to increase, motorists will be relieved to learn that the average price of a new car rose here by just 0.2 per cent in 2005 compared with a year earlier.