New and used car sales contributed more than €900m to the Exchequer in the first nine months of the year, according to a report by the Society of the Irish Motor Industry and DoneDeal.
There has been a 27.9% increase in the amount of VRT and VAT collected through car sales in the year to September, according to their latest quarterly Motor Industry Review.
This has been led by a strong surge in new car sales, which are now expected to hit 95,000 by the end of the year.
The increased activity has also led to a rise in employment in the sector, according to SIMI and DoneDeal, with further jobs growth forecast for 2015.
The report notes a fall in car prices during the year, with diesel and petrol prices also down.
Insurance premiums have risen, however, up 6.7% year-on-year.
SIMI says the split-registration period, introduced last year, has succeeded in its aim of spreading sales over more of the year, with 30% of this year’s new cars sales taking place from July onwards.
New car sales are anticipated to increase further next year, with the report saying the figure could rise another 26% on this year.
Economist Jim Power, who authored the report, suggests that sales should be indirectly boosted by Budget 2015, as consumer confidence and spending power increases slightly.
