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Car buyers splash the cash as number of registered vehicles continues to rise

New figures released today by Cartell.ie -Ireland’s only used car history check – show that Irish car buyers went into overdrive in the first three months of the year – increasing the number of vehicles registered in the first quarter of 2007 by almost 22% over the same period in 2005!

New vehicle sales in the country were up by 17% but worryingly for the Irish car industry, the number of imported vehicles arriving to the country has increased by a whopping 54% in the first three months of the year when compared to the same period two years ago!

Cartell.ie Director, Nicola Aherne, believes this trend will persist as long as the economy continues to perform strongly and Vehicle Registration Tax (VRT) remains in place.

She commented:

“I have little doubt that we’ll see similar increases in the first quarter of 2008.  The Irish people love their cars and last year saw a GDP increase of 6 per cent.  When people have extra money in their pockets, they’re tempted to splash out on the luxury of a new car.

“The importation trend will continue as those in the market for a new vehicle learn more about the bargains to be had in places such as the UK.  Part of the added value comes from our current taxation system.”

Cartell.ie have been saying for some time that VRT encourages car buyers to look for bargains overseas and depresses indigenous car sales.

Nicola continued:

“We know that many people who import luxury cars from places like the UK deliberately understate their specification in order to reduce the amount of VRT for which they are liable.  With approximately 80,000 vehicles being imported annually – and this figure is increasing month on month – the likelihood of Revenue inspecting the vehicle is minimal.

“That’s why we’ve recently called on the Government to replace the VRT system with one which considers a whole host of issues, such as mileage and CO2 emissions – a development which would address both our environmental commitments under the Kyoto agreement and go some way towards addressing the issue of car clocking in this country.”

Cartell.ie was set up by brother and sister team – Jeff and Nicola Aherne – to help Irish prospective buyers make an informed choice when buying a used car by giving consumers the information they need to avoid purchasing an unsuitable vehicle and help safeguard against fraud.

Nicola remarked:

“We caution those planning on importing a car to conduct a full background check on the vehicle of their choice before they hand over a cheque to the vendor.  Problems such as outstanding finance owing on the vehicle or altered mileage can impact hugely on the car’s re-sale value.

“In the worst instances, dodgy vendors can be trying to pass off stolen or previously crashed vehicles.  It’s essential that car buyers do their homework in advance to prevent them getting stuck with a purchase they’ll really regret.”

-ENDS-