Car sales are up 5.04 per cent on January 2009, the second month consecutively in which sales have improved for the ailing car industry. However, the figure, could be underestimating the boost, according to one Cork dealer. Commenting on the figures released by his organisation, SIMI Director General Alan Nolan said, "At five per cent up on January last year, we are very pleased with new car sales so far this year.

This is the second month in a row that we have seen an increase in registrations. Given that the first two weeks of January suffered a virtual standstill in trading due to the bad weather, the fact that the month has finished five per cent ahead of last year is a very strong sign that consumers are availing of the incredible value that is available at the moment.

While the snow and ice delayed registrations until well into the month, feedback from dealers around the country is indicating that the significant increase in footfall and in actual sales, in comparison to this time last year, is continuing. Dealers are also reporting that the Scrappage Scheme has been very well received by the public who are actively seeking out the best value in 2010 low emission cars."

Marketing Manager at Cavanaghs of Charleville, Hugh Sheehy, said: "We feel that the actual figures are a bit better if you consider that, with the weather we had at the beginning of the month, the figure reported was made up in the last two weeks. We would be fairly confident that that the actual figure would be better than five per cent."

Sheehy also praised the Scrappage Scheme as a boost to business so far this year. "The Scrappage Scheme will contribute to the sale of about 15 units in January," he says. "And it is also bringing knock on business. Some people, who will have just missed out on the terms of the Scrappage Scheme, will still be eligible for other offers and the publicity of the Scrappage Scheme has brought these people in."

With sales up on both new and used vehicles, there is optimism for the coming year. "We're reasonably confident," says Sheehy. "Well we are definitely more optimistic now than in the last two years. The availability of credit is still a drawback however and it is something that will hold back our industry for some time to come. Some people might have the price of the deposit for a car but the further finance often proves to be the Achilles heel."

Looking to the coming year, Suzanne Sheridan of SIMI said: "We expect the current trend to continue for the year to achieve the 70,000 plus new car sales that we predicted."

Light Commercial Vehicle registrations for January 2010 (2,060) are also up 27.7 per cent on the same period last year (1,613) while Heavy Vehicle registrations are down -52.01 per cent (131) compared to January 2009 (273).

Imported Used Car registrations for January, at 3,188, were down -45.87 per cent on the January 2009 (5,889), while registrations of imported used Light Commercial vehicles at 590 are also down -50.8 per cent on January 2009 (1,201).

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