As most Irish Motor Traders, Motor Factors and Vehicle repair people will know, the Irish Motor trade is shrinking on a weekly basis. Is it because people are not spending their money full stop, is it because vehicle finance and small time lending are not available or is it simply because vehicles are so highly advanced that they don't give trouble any more? The list could be endless.
One or two issues are very evident - the cost of running vehicles, the fact that families realise they don't need and can't afford, two cars anymore, the cost of living overtaking the vanity that underpinned a large section of the 4x4, BMW, Lexus and Audi market.
Escalating fuel prices, higher insurance costs, and reckless lack of maintenance of our chariots in the last 10 years as the purchase of a new, higher spec, sparklier motor was only ever just a loan away has lead to massive repair bills by people now desperate to keep their ageing motor on the road.
For example the turbo massacre normally caused by lack of oil, dirty oil, or the wrong or poor quality oil can result in a bill of €1000 to €1500 for the average family saloon, as they find themselves needing to replace this vital part. The Peugeot/Citroen 1.6 Hdi family (407, 307, C4 and C5), Volvo S40, V50, Mazda 3 and Ford Focus from 04 to date, all use the same turbo. From reputeable suppliers this can cost €550 plus €120 for the fitting kit, never mind the oil and air filter and 2-3 hours labour. And thats for a remanufactured turbo, so you can double that if you want the brand new replacement turbo.
Clutch failure now involves the replacement of your flywheel. For the Mazda 6 2l Diesel, a very popular car, this will cost from reputeable motor factors €600 plus VAT for cars up to March 2005. For newer than March 2005 you could double that price. The clutch kit itself could be costing you €400 plus VAT.
For some people these figures represent a 6 month supply of vitamin G (the black stuff) and dirty smokes, and walking to the pub seems a small price to pay. But on a more serious note for others these sort of figures can't even be considered, once the mortgage, household bills and the weekly food have been paid for. As you'll have seen recently 800,000 people in Ireland have less than €80 a month to live on after essential bills.
Car sales were for a time artificially inflated by the Government scrappage schemes matched in many cases by manufacturers offers, all in a bid to move stock and keep things going. But any main dealer will tell you that July has seen figures plummet as people simply cannot afford to buy new cars without the help of these deals. Banks aren't helping matters by increasing charges and loan rejections. Even the bank managers themselves are trying to offload their flash motors, and 4 wheel luxury for more practical and economically kept vehicles.
Revenue into the industry is sluggish as people opt to pay their tax quarterly, and their insurance on a monthly basis, to allow them to keep on the road at all.
Its only a matter of time before there is a resurgence in the popularity of car-sharing or car-clubbing as people try to get to work in the most cost effective manner possible. Nobody can blame people for trying to keep the cost of vehicle ownership to a minimum, but the knock on effect on the industry can't help but be felt by already struggling garages, motor factors and mechanics. Its a bit like an angry polo mint (a vicious circle) as these people become statistics in an economy on a downward spiral. The less people spend, the less money is out there, the more people lose their jobs, the less money the average person then has to spend, and so on and so on - where will it all end!!! Are we looking at a car-less future - no wonder the price of Honda 50s has gone through the roof! Time to call 11850.......
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