Any analysis of the latest car registration data will reveal why there’s a smile on the faces of motor dealers across the country. Car sales have increased by 28% so far this year and the magic figure of selling 100,000 cars by the end of the year seems already within reach.

For the motorist, the arrival of the 152 registration plate at the start of July is a second opportunity to get some new car value. Car companies are vying with one another to capture some of the expected increase in sales interest, based on last year’s massive upturn with the new half-year registration plate.

There are bargains to be had but, as always, be careful. There are deals for scrappage and deals for finance and take time to separate both and drill down to examine the value, because it’s there.

First, do a checklist of what you want in a car. Take time to examine your needs and then the choices often come to the surface in an obvious way. Include running costs, possible depreciation, a difficult one to predict, and also assess the safety features.

And most of all take time, shop around both for your new car and the money to finance it.

Strong car sales market

Car sales have continued their upward trend right up until the end of April this year and the motor industry is poised for another upward swing in sales from the new 152 registrations that will appear at the start of July.

The split-year registrations process looks set to continue to generate two peaks in car registrations and gives new car buyers a second opportunity to avail of offers.

Even before the 152 plates appear, new car registrations are running at 28% higher than last year. There is continuing enthusiasm in the motor industry and that is being driven by more optimism in the economy, including significantly in the farming economy.

Last year the 142 plate sales for July peaked at 18,711 new cars. This was the highest July registration level on record and was a 60% increase over July 2013, when the split-plate system was introduced.

That’s proof enough that the system is working. It allows motorists to buy a new car later in the year without having to experience a huge level of depreciation.

Diesel engines continue to dominate the car market, but the diesel dominance is slipping slightly as petrol engine cars become more fuel efficient. And petrol engine performance will continue to improve, with success from the likes of Ford with their Eco-Boost design.

The diesel penetration of the market fell from 74% for the first four months of 2014 to 71% for the same period this year. Petrol car sales for the same corresponding four-month period rose from 25% to 27.5%, while sales of electric cars more than doubled from 111 to 284 for the early months of 2015.

Also, motorists are conscious of the CO2 ratings of their cars and resultant running costs and they are buying their new cars accordingly. The figures for this year show that 71% of new cars sold this year were in Band A for CO2 rating, an increase from 67% last year.

Car numbers in the Band B category dropped from 27% to 24% this year. However, cars in the higher Band E rose in numbers. This reflects the continuing growth in the MPV and SUV sectors.

Sales of 4x4s/SUVs rose to 17,068 for January to April 2015 compared with 12,734 in 2014 (Table 1). This is a massive increase of 4,334 extra cars or a 34% rise in the year. This sector of the market, which is important for rural drivers, now accounts for almost 20% of the new car market in Ireland and is the second-largest sector for new car sales.

The top three selling cars so far this year were the Volkswagen Golf, Ford Focus and Nissan Qashqai. Across all cars, the new Volkswagen Passat has recorded the highest growth in sales in 2015, up by 45% in terms of market share. The Toyota Yaris was also a strong performer at the smaller car end of the market. Of the top 10 cars sold so far this year, the Volkswagen Passat is the only car that is growing its market share.

Secondhand imports decline

Sales of secondhand imported cars continue to be important in Ireland, as thousands of used cars make their way across the Irish Sea from the British market. This market stays strong even as sterling remains strong against the euro.

For the first four months of 2015, used car imports dropped from 19,428 to 17,762 across the country. Used imported car registrations now account for 24% of all registrations compared with 35% for the same period in 2014, a drop of 9%.

Border counties have the highest numbers of used car imports. For example, used car imports account for 41% of all cars registered so far this year in Donegal. Other rural counties such as Sligo and Longford also have high levels of used car imports. Dublin, on the other hand, has the highest numbers of new cars registered, and the lowest percentage of used registrations. Do we need further confirmation of a two-speed economy developing?

The Ford brand is the leading used car import, followed by Volkswagen. The Ford Focus and the Volkswagen Golf are the two most popular imported cars. It is interesting that even among imported used cars the diesel share is falling.