Industry chief insists: resale value of 132-reg cars will be better than 131
TRADE-IN values of cars with '132' reg-plates – bought from next Monday, July 1 – will be higher than those with '131' numbers, a motor industry leader insists
SIMI chief Alan Nolan made the forecast in response to a question from Independent Motors.
The value of cars registered from July has been a matter of debate over the past few months with some suggesting buyers would lose out on trade-ins.
But in a strongly-worded reply to our question Mr Nolan, the Director General of the SIMI, said he was convinced cars with '2' registrations would do better on the second-hand market in years to come.
"If you go into a dealership in three years' time and there is a 131 and a 132 on sale, all things being equal on equipment and all that, which one would you buy?
"There is no doubt it will be the 132. Would you give an extra €100 for it if it had less mileage? €200? That's what I am saying, There WILL be a price difference."
He stressed again: "There is no doubt there will be a difference in price in favour of the 132 registrations." And for all future '2' registrations, he said.
As dealers put the finishing touches to deals in advance of Monday's new 132-reg period, he agreed it would take a couple of years for the new system to bed-in fully. "We all knew it would take a bit of time but it will work and it will benefit a lot of people when it settles down."
One of the side-benefits of having mid-year registrations is that there should not be such a backup for NCT car tests, according to Mr Nolan.
He said the motor industry had pushed for the new system to achieve a number of things.
These include taking the huge spike of business out of the first one to three months of the year and spreading it more evenly. That is not going to happen overnight but it offers an opportunity.
Secondly, it gives businesses who would normally buy in their fleet cars early in the year a chance to stretch their 'new' purchases over two periods – and help firms with cash-flow problems.
"This also takes pressure off private buyers who felt if they didn't buy in the first few months that it wasn't worth buying later on in the year. All these elements will make the new system a lot better for more people. It just needs a little time," Mr Nolan said.
The industry is expecting a moderate increase in sales this July and to a lesser extent in August. After that, however, there is likely to be a fairly sudden halt in business for obvious reasons – people will be holding out for 141 registrations in the New Year.
And that is what makes the next few weeks so crucial for an industry desperately in need of a pickup of some sorts after a poor year so far.