Call for registration system overhaul

A CHANGE in the current registration system is being sought by car distributors and dealers in Ireland in an effort to spread out the current glut of sales at the start of the year. As new car sales this year already exceed the total sold in 2009, with 57,898 cars registered, some industry figures say businesses in the industry face front-loaded costs at the start of the year and then struggle to justify the expenditure on staff and premises as business dries up towards the autumn.

“The key issue we have with the current registration system is that between 60 to 70 per cent of new cars are sold in the first four months of the year, so funding for everyone operating and costs is enormously front-loaded,” says Alan Nolan, of the Society of the Irish Motor Industry (Simi).

“And it’s not just an issue for ourselves – the National Car Test calls in cars based on the date of registration and in recent years they have witnessed a huge proportion of tests due in the first four months and far fewer as the year goes on,” he says.

Alternatives to the system are being discussed within the industry lobby group.

However, they are likely to get a lukewarm reception from Government and civil servants, who don’t believe the cost of changing the current system is either timely or worthwhile.

Also, not everyone in the industry agrees that the system is broken. One senior industry source warned that dealers and distributors need to be careful what they wish for.

“If people don’t have the incentive of the new registration on the numberplate, they may well revert to only buying new when the car is actually new. With many manufacturers fully updating models every seven years or so, that could mean people will hold onto their cars for longer. It may ease the rush of the early months but only by reducing the number of people buying cars,” he said. “For all the problems, there’s no doubting that the current system offers a tempting incentive to buy, for some.”

Apart from seeking to downplay or remove the year of registration, Simi is also suggesting that buyers be allowed to change the county of registration to their own after they buy a used car. According to Nolan, the transfer could generate significant revenue for Government and be assigned to local roads maintenance. It won’t affect the information on the used car either.

When the registration is changed, the old registration for the car would not be used again, but would reside with the car, allowing full background checks to be carried out through the various history check services, as at present.