Statistics released by the Society of the Irish Motor Industry (SIMI) showed that during September 2009 there were 2,259 new car registrations, a drop of 34.67 per cent in comparison to September 2008’s figure of 3,458 new registrations.

The year to date number is down by as much as 63 per cent on the figure to end of September 2008 to 55,136 from 149,059.

SIMI figures also showed that the number of imported used car registrations for September also fell from 5,139 to 3,428, which is a drop of 33.29 per cent for the same month last year. For the year to September, 42,285 used car registrations were applied for, a fall of 18.71 per cent for the same period last year.

A spokesman for the Society of the Irish Motor Industry, Brian Cooke said, "We have been running at 63 per cent behind last year so 33 per cent down in September might appear to be somewhat of an improvement but this is not actually the case. The September figure needs to be viewed in the context of the sudden deterioration that occurred in September 2008, which was 47 per cent down on September 2007. The year to date analysis shows new car sales to be still 63 per cent down on 2008. This is at a level that cannot sustain the current level of employment in the motor sector. Our industry has continued to hemorrhage jobs with the number of jobs lost now totaling more than 10,000 since January 2008."

Car registrations continued to fall across the board, with the light commercial vehicle sector experiencing a drop of 35.05 per cent, down to 645 in September, from 993 for September 2008.

Heavy vehicle registrations were also down from 2009 in September 2008 to just 78 for last month, a decrease of 62.68 per cent.

Mr Cooke called on the Government to introduce a car scrappage scheme in January 2010, with predictions of a further 8,000 to 10,000 jobs being at serious risk. He said, "A scrappage scheme is a ‘no brainer’. It benefits the consumer, the Government, the industry and most particularly thousands of employees in every town across the country."

A recent study by economist Peter Bacon made observations that this loss of workforce would have a knock on effect with other sectors such as transport services, motor insurance services and post and communications.

BETHESDA, Md — You’ve just made your last car payment. Should you keep the car or trade it in for a brand new vehicle? According to the Car Care Council, keeping your car rather than buying a new one is the way to go, especially if your goal is to save money.

“People who keep their cars, treat them as valuable investments and commit to regular vehicle maintenance, end up saving a lot of money,” said Rich White, executive director, Car Care Council.
The most common maintenance procedures and repairs to keep your car operating safely and reliably while maintaining its long-term value involve checking the oil, filters and fluids, the belts and hoses, brakes, tires and air conditioning. The council also recommends an annual tune-up and wheel alignment.

Over a four-year period, the difference in the savings between keeping a car and buying a new one is $10,894, according to Runzheimer International.

The cost comparison identified the expenses of keeping a 2003 6-cylinder, 4-door sedan that gets 21 miles per gallon (mpg) and costs $19,727, versus buying a new 6-cylinder, 4-door sedan with 23.5 mpg that costs $23,451 and had a down payment of $10,158, the trade-in value of the older car.
At the end of four years, expenses on the used vehicle, including fuel, license, registration, taxes, insurance, maintenance and tires, were $16,548. A resale value of $3,759 puts the total four-year cost at $12,789.

On the new car, expenses including the car payment, interest on the car loan, fuel, license, registration, taxes, insurance, maintenance and tires, totaled $32,258. A resale value of $8,575 puts the total four-year expense of the new car at $23,683.

“We advise our clients that if they want to see an increase on their investments every year they need to cut down on their expenses,” said Terry Mulcahy, vice president of investments for R.W. Baird in Mequon, Wis. “A new automobile is for most people their second biggest investment next to a home, so a great way to save money and increase financial assets is to hang onto their current vehicle rather than buy a new one every few years.”

The Car Care Council is the source of information for the “Be Car Care Aware” consumer education campaign promoting the benefits of regular vehicle care, maintenance and repair to consumers. For a copy of the council’s consumer-friendly Car Care Guide or for more information, visit www.carcare.org.

NEW YORK -(Dow Jones)- The financing arms of U.S. auto makers are likely to shift to longer-term car loans as they eliminate or scale back their participation in the leasing business.

A longer maturity on loans translates into a slower repayment of principal, increasing the potential magnitude of losses resulting from defaults. It also means that these companies should set aside more reserves to account for possible losses from these loans - on top of the funds they have squirreled away to support the souring credit quality of their portfolios.

But these longer-term loans - which can now stretch out as long as 84 months, or 7 years - are one way that General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC can seek to clear bloated inventories and avoid further market- share losses. With fuel prices above $4 a gallon and consumer confidence on the decline, Detroit’s auto makers have been stung by steep declines in sales of the pickup trucks and sport-utility vehicles that have long sustained their businesses.

As the financing arms of these auto makers eliminate or cut back on unprofitable lease agreements - a trend that has picked up momentum in recent days - longer-term loans for car buyers can bring down monthly payments for borrowers to the same level as payments made under leasing agreements.

“What you’ll probably see is that captive financing arms focus a bit more on longer-term loans, such as 72-month loans to help reduce monthly payments,” says Chris Wolfe, an analyst at Fitch Ratings.

Wolfe warned, however, that longer-term loans increase the ultimate loss severity in the event of default, noting that the amount of unpaid principal is larger than it would have been on a shorter-term loan.

“From our perspective, longer loans mean loss-incurred-in-case-of-default becomes higher,” says Wolfe. “Are companies factoring that into the price they charge the customer? Are they factoring that into the loss reserves?”

Chrysler To Extend Loan Terms

Fitch on Tuesday downgraded its issuer default rating on Chrysler to CCC, just two notches above a default rating. The move followed Chrysler’s announcement Friday that it would no longer offer leases through its Chrysler Financial lending arm.

Fitch said that the downgrade reflected Chrysler’s restricted access to economic retail financing for its vehicles, which is expected to further cut into sales volume. It added that “the lack of competitive financing is expected to result in more costly subvention payments and other forms of sales incentives.”

Chrysler Financial, which typically extends 36-month loans to car buyers, will do more 60-month loans, according to Bill Porter, a spokesman.

The question of longer-term loans comes “into play when we had to make the decision to move away from leasing. It’s shifting the risk,” says Porter.

“You still have the risk of consumer finance; people can still default on their loans. What added to the lease was the risk of declining residual values,” he said. “We believe we can effectively manage our risk through disciplined credit policies on the loan side.”

Leasing comprises an estimated 20% of U.S. auto sales, and has been a key tool used by auto makers to offer lower monthly payments on vehicles customers couldn’t otherwise afford. In recent months, however, leases have become a liability amid tanking resale values, especially of used pickup trucks and SUVs.

In most cases, when a lease is up, the customer returns the vehicle to the auto finance arm, which then resells the car or truck. The lower worth of the vehicle has spelled losses at these companies at the time of resale, and, a fall in the value of their existing portfolio of lease agreements.

Longer Loans Are Key Incentive

Ford announced last week that it wrote down $2.1 billion to cover unprofitable auto leases at its Ford Motor Credit arm in the second quarter. GM affiliate GMAC LLC could announce big lease-related losses when it releases its second- quarter financial report on Thursday.

This week, Ford informed its dealers that it will raise the prices on leases on its most-profitable trucks and SUVs due to the “extreme losses” Ford Motor Credit is taking on these vehicles. GMAC, in which Cerberus Capital Management has a 51% stake and GM has the remainder, said it will no longer extend auto lease deals to consumers with the lowest credit ratings.

“This isn’t the first time auto makers have taken losses on residual values,” said Robert Schulz, an analyst at Standard & Poor’s. “What makes it a little unique now is that they are stopping and ending leasing completely,” he added, referring to Chrysler.

Schulz said that S&P is worried about the potential for the auto makers to implement more broad-based and aggressive incentives.

Cut-rate financing for longer terms has become a key incentive in the arsenal of auto makers.

“Longer-term contracts may be one way to essentially keep” payments on a car loan in line with lease payments, says Curt Beaudouin at Moody’s Investors Service.

“That’s the rock and the hard place that the manufacturer and finance companies are in between at the moment,” says Beaudouin. “The risk is if you loosen standards now to drive sales in the absence of leasing, you’re inviting more credit losses.”

-By Aparajita Saha-Bubna, Dow Jones Newswires; 201-938-2137; aparajita.saha- bubna@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today’s most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=ejZJCnpbMw1Qtcv6Qd391A%3D%3D. You can use this link on the day this article is published and the following day.

SANTA MONICA, California –This month’s new vehicle sales (including fleet sales) are expected to be 1.26 million units, a 3.3 percent decrease from July 2007 and a 6.3 percent increase from June 2008, according to Edmunds.com, the premier online resource for automotive information.

July 2008 had 26 selling days, two more than last July 2007. When adjusted for this difference, sales decreased 10.7 percent from July 2007. (The chart below sets forth other unadjusted and adjusted comparisons.)

“The combined market share for compact cars, compact trucks and compact SUVs is near its all-time high,” observed Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. “We expect these three segments to make up around 35 percent of the total market in July, compared to just 23 percent in July of 2003.”

The combined monthly U.S. market share for Chrysler, Ford and General Motors (GM) domestic nameplates is estimated to be 44.4 percent in July 2008, down from 49.4 percent in July 2007 and down from 46.4 percent in June 2008.

“Recent headlines regarding downgraded annual sales forecasts, adjustments in production schedules and boosts in incentives foreshadow another dismal month,” commented Michelle Krebs, Senior Editor of Edmunds’ AutoObserver.com.

Edmunds.com predicts Chrysler will sell 117,000 units in July 2008, down 14.8 percent compared to July 2007 and up 0.2 percent from June 2008. This would result in a new car market share of 9.3 percent for Chrysler in July 2008, down from 10.6 percent in July 2007 and down from 9.9 percent in June 2008.

Edmunds.com predicts Ford will sell 176,000 units in July 2008, down 7.4 percent compared to July 2007 and up 3.1 percent from June 2008. This would result in a new car market share of 14.0 percent of new car sales in July 2008 for Ford, down from 14.6 percent in July 2007 and down slightly from 14.4 percent in June 2008.

Edmunds.com predicts GM will sell 266,000 units in July 2008, down 15.7 percent compared to July 2007 and up 1.3 percent from June 2008. GM’s market share is expected to be 21.1 percent of new vehicle sales in July 2008, down from 24.2 percent in July 2007 and down from 22.2 percent in June 2008.

Edmunds.com predicts Honda will sell 160,000 units in July 2008, up 13.3 percent from July 2007 and up 12.1 percent from June 2008. Honda’s market share is expected to be 12.7 percent in July 2008, up from 10.8 percent in July 2007 and up from 12.0 percent in June 2008.

Edmunds.com predicts Nissan will sell 88,000 units in July 2008, up 0.2 percent from July 2007 and up 16.0 percent from June 2008. Nissan’s market share is expected to be 7.0 percent in July 2008, up from 6.7 percent in July 2007 and up from 6.4 percent in June 2008.

Edmunds.com predicts Toyota will sell 217,000 units in July 2008, down 3.3 percent from July 2007 and up 12.1 percent from June 2008. Toyota’s market share is expected to be 17.2 percent in July 2008, even from 17.2 percent in July 2007 and up from 16.3 percent in June 2008.

Fort Lauderdale, FL  — AutoUSA, the industry’s leading provider of the highest quality Internet-generated consumer leads to auto dealers nationwide, today announced that its Edmunds.com Premier Dealer Program is now available to General Motors (GM) auto retailers. The program provides dealers with exclusive lead territories, top placement in Edmunds’ Dealer Locator, and over 100 dealer-branded advertisements throughout Edmunds.com driving the highest quality trackable phone calls, leads, branding and traffic to the dealer website.

“Edmunds.com’s Premier Dealer Program is an outstanding Internet branding program and a great way for GM dealers to generate high quality Web traffic and leads,” said Phil DuPree, president of AutoUSA. “I can’t think of a better opportunity for dealers who want to increase their online sales.”

I can’t think of a better opportunity for dealers who want to increase their online sales.
Edmunds.com is one of the leading online resources for automotive information. Millions of consumers visit the site each month to shop for a vehicle. The Premier Dealer Program helps dealers more effectively reach auto buyers by prominently displaying the dealer’s brand throughout the portal, insuring the dealership receives top listing in searches and providing exclusive lead territories.

AutoUSA first launched the Edmunds.com Premier Dealer Program for non-GM dealer clients in 2006. Several months later, AutoUSA confirmed that there was a significant increase in lead quality and closing ratios amongst program participants. Dealers attributed the program’s overwhelming success to territory exclusivity and the portal’s popularity as a trusted source for vehicle reports, research, articles and comparisons.

GM dealers who sign up for the Edmunds.com Premier Dealer Program can take advantage of several marketing and branding opportunities that guarantee maximum exposure to targeted auto consumers, including:

Territory Exclusivity — One dealer per make per area. The territory assignments remain in place unless given up by the dealer.

Top Dealer Locator Placement — Guaranteed top placement in Edmunds.com’s Dealer Locator — even if there’s a competing dealer that’s closer. Once a dealer owns the top spot, it’s theirs exclusively. Includes a dealer endorsement by Edmunds.com.

Branded Advertisements — Over 100 branded advertisements throughout Edmunds.com on new and used car pages. Advertisements include an Edmunds Premier Dealer logo, trackable dealer phone number, two links to to the dealer’s Web site and a link to the dealer’s own Premier Dealer Web page

Premier Dealer Web page — An Edmunds.com-hosted dealer Web page that includes dealer logo, contact information, trackable dealer phone number, two links to dealer’s Web site, Edmunds message endorsing the dealer, lead form, map and driving directions.

“Edmunds has done a great job with this program. It’s one of the most cost-effective ways for a dealer to extend their online presence to purchase-ready auto consumers,” said DuPree.

About AutoUSA (www.AutoUSA.com)
AutoUSA, Inc., is headquartered in Fort Lauderdale, Florida, and a subsidiary of AutoNation, Inc. (NYSE: AN), the largest retail automotive company in the United States. AutoUSA is an independent third-party provider of leads to more than 4,000 dealerships. The company has built its success on a combination of advanced web-based technology and a network that includes the country’s most well respected online automotive resources, including Edmunds.com, Kelley Blue Book, MSN Autos, Yahoo! Autos, America Online, NADA Analytical Services Group, AutoVantage.com, AutoNation.com and AutoUSA.com. The vast majority of Ward’s Top 100 eDealers use AutoUSA. More information is available online at http://www.AutoUSA.com