Irish car sales are being distorted by several importers pre-registering cars not yet sold, according to a leading distributor.
Mr Declan McCourt, chief executive of the OHM Group, distributors of several brands including Jaguar, Seat, Saab and Daihatsu, says that industry claims of an 8 per cent growth this year with sales of 157,000 are misleading when you factor in pre-registered cars which he estimates to be anywhere from 15,000 to 30,000.
Even if the lower estimate was taken, it would suggest that the real situation in the new car market is one of stagnation rather than the claimed growth.
Pre-registered cars are those which have been registered by either the importer or dealer but have not actually been sold to a customer. However, they would appear in the monthly sales figures issued by the Society of the Irish Motor Industry (SIMI) and factored in to the particular brands market share.
According to Mr McCourt: "There's been a huge surge in certain brands pre-registering cars, and it's distorting the market. The reasons behind it are unclear, possibly due to a lot of manufacturer or stock pressure, but certainly the market is not what it seems to be."
Some distributors have set goals of achieving market share and for them the calculated risk of having to sell on the cars later is worthwhileif it maintains their market share. The car's don't sell at normal used prices given the lack of mileage and general high specification.
The difference between cars registered with the Revenue Commissioners and those licenced and taxed has grown significantly in recent months. In 2002, 156,115 were listed by the SIMI as registered new cars. This compares with 150,485 licensed vehicles, according to the Central Statistics Office (CSO). That's a difference of 3.6 per cent. In 2003 the discrepancy was down to 1.6 per cent.
However, as of May this year, SIMI figures show 108,412 new car registrations. Meanwhile the CSO records only 93,319 newly taxed private cars. That's a difference of 15,093 cars registered by the end of May but not yet taxed.
The CSO says that some of the discrepancy is due to tax "exempt" vehicles. These can be divided into four categories - State-owned; diplomatic; fire services and disabled drivers. Taxis also feature as registered new cars, but are taxed as small public service vehicles.
Most industry sources, however, suggest that these would account for only a small fraction of the 15,000 registered cars not featuring in the CSO figures.
According to one industry analyst, the number of pre-registered cars has risen dramatically this year and it's likely to impact strongly on the new car market in the coming months as dealers seek to offer these cars for sale. "The practice is creating a new niche in the market, with prices between new and used car. It's good for customers."
"Manufacturers are keen to retain market share and take a calculated risk on pre-registering cars, but the market has now taken on a life of its own."