Used-car sales soar as Brexit hits pound

THE threat of Brexit has led to a surge in imports of second-hand cars.

The number of second-hand cars brought into Ireland has doubled in two years and is now expected to hit 100,000 this year.

Sales of new cars were down by 10.5pc last year.

The fall in the value of sterling has prompted the rise in imports as it makes British vehicles more competitive in price

The trend is continuing into 2018, with new car sales down almost 5pc in the first half of the year, according to the Consumer Market Monitor published by the Marketing Institute and UCD Smurfit Business School.

Sales of new cars fell to 127,000 last year.

And they are continuing to be weak this year – down 4.9pc in the first half for a total of 83,037.

However, there was a dramatic increase in the number of imported second-hand cars.

These jumped 47pc in 2016 and are up by the same percentage again in 2017, to a total of 92,508.

This growth is continuing in 2018, up 12pc in the first half year, suggesting a total of more than 100,000 for the year.

Prof Mary Lambkin of UCD Smurfit School said fears over the impact of Britain leaving the European Union have only materialised in car sales so far.

This is despite our huge reli- ance on UK imports generally in this country.

“Two-thirds of items on supermarket shelves are imported – and that percentage is even higher for clothing and household goods.

“However, despite our reliance on a high proportion of imports for many types of goods, fears of Brexit have not yet materialised in most consumer sectors, except for car sales,” she said.

She said car sales are the one sector in which Brexit has had a clear and dramatic effect.

It has been driven by the significant fall in the value of sterling which has made car imports cheaper.

The publication outlines that consumer spending is growing at a steady pace and continues to be one of the main drivers of economic growth in Ireland, along with construction.

The academic said residential property is the sector under most pressure due to the recovery in the economy.

There were 45,342 homes sold in 2016 which was lower than the 47,313 sold in 2015 in a situation of very short supply.

Sales strengthened in 2017, up 10pc to 50,000. This was the highest rate of sales since the recession.

This upward sales trend is continuing in 2018, with 20,000 sales transactions in the first five months.

Some 60,000 sales are expected for the year.