Southern Ireland consumers go north to buy cars

Southern Ireland consumers are continuing to buy cars in the UK in increasing numbers.

The trend is caused by the fall in the value of Sterling, the recent cut in VAT in the UK and changes in vehicle registration tax in the Republic.

The Derry Journal reports today that this combination of circumstances could blow many dealers “on the rocks”.

“Victor Pollock, sales manager with Donnelly and Taggart in Campsie, said: “Cross-border business is bringing a big boost in sales, particularly of cars in the medium to upper-medium size bracket.

“Customers from the Republic can save up to 35% on the cost of their new car, and that could be £4,000 for a medium-sized car. There are also big savings on nearly-new models.”

Earlier this month Car supermarket giant Motorpoint said there has been a big increase in the number of people from Southern Ireland showing interest in buying cars as Sterling declines against the Euro.

It claimed in the final quarter of 2008, its online operation received nearly 400 calls from Irish customers, up 400% year-on-year.

It added that the Motorpoint website has experienced an upsurge in traffic for Ireland, up 23% since the end of September 2008, aided by special offers.

It said: “This trend has showed no sign of slowing in 2009 with over 15 calls a week currently being received.

“In addition, so-called ‘qualifying’ vehicles like the VW
Passat are exempt from VAT for EU nationals when purchased in the UK – making the prices even more affordable.”