A TOTAL of 879 new cars were registered in County Wexford during the first two months of 2010 as the motor industry begins to show signs of renewed life following an extremely difficult 2009.

Figures released by the Society of the Irish Motor Industry (SIMI) show that the number of 2010 cars registered in the Model County up until the end of February represents an 11.5 per cent increase on the number of 2009 cars registered in the same period last year (789).

Though not a massive increase by any means, it's still very welcome news for dealers around the county, who have reported an increased footfall on their forecourts in recent times as customers begin to exhibit signs of confidence yet again.

February was the third consecutive month that the motor industry has seen an increase in both new car and light commercial vehicle registrations.

Car sales at Boggan's Toyota garage in Newtown Road in Wexford are up 20% on a disastrous 2008 when new tax regulations based on emissions contributed to a major slump.

'We sold 700 cars in 2007 and 200 in 2009 but we are up 20% this year', said general manger Mark Boggan.

The new environmental regulations left garages with petrol cars that were worthless as customers started to switch allegiance to diesel motors.

'The Green Party measures changed everyone's buying pattern. Up to 2008, 80% of the cars we sold were petrol. Now it's rapidly going in the other direction', said Mark.

Vehicle registration and motor tax are now based on the level of emissions from a vehicle and consumers are opting for cars which will incur a lower annual rate of road tax.

The scrappage scheme has also given car sales a boost and contributed to an overall feeling of confidence, according to Mark.

People availing of the scrappage scheme are creating an atmosphere whereby others with spare cash who don't qualify for scrappage, are feeling better about buying a new car.

'Someone with money in the bank would have thought -I'm not going to be the only one in the street with a 2010 car-especially if they were either trying to hold onto a job or letting people go. There was a confidence problem. Scrappage is helping to overcome that', said Mark.

There has never been a better time to buy a new car due, he added, due to scrappage incentives on top of recession discount of up to €2,000.

Not only that, but the new cars coming on the market are safer and more environmentally-friendly.

Ultimately, however, the car sales trend in the long-term, will depend on the performance of the economy, according to Mark.

Following a 'depressing' 2009, new car sales have increased by over 25 per cent so far this year in Michael Sidney and Son Car Sales.

The Renault dealership, based in Marshmeadows, New Ross, is citing the government's car scrappage scheme as a huge help facing into 2010.

'We are way ahead compared to last year. Our sales would be up 25 per cent on last year and maybe even more. The Scrappage Scheme has helped big time,' explained Salesman Larry O'Brien.

According to Larry many motorists availing of the long-awaited government scheme are trading their old cars into Renault Clio or a Megane diesel models, due to their low emissions and small road tax.

'Renault has their own scrappage scheme, which is an extra €3,000 on top of the government one,' said Larry, adding that a customer can buy a 2010 Clio from just €9,000 with both scrappage schemes combined.

With car sales still going strong, one of the most noticeable trends in sales is the types of cars motorists are now opting to buy. The large luxury models are still remaining in the garage forecourt as motorists are attracted to smaller, more economical models.

'We are selling less Lagunas, which are our big car. I'd say we wouldn't have sold a fist full of those so far. The Meganes and Clios are what people are buying,' said Larry.

Diesel engines are also far outselling petrol ones, with the added advantage of lower emissions, resulting in much lower road tax, some at just €108 for the year.

The profile of customers has also changed dramatically since the record car sales of 2008. Garages are increasingly noticing that most of their customer base over the past year has comprised of retired customers and two job households.

'It is mostly retired people buying cars, people who have their pension sorted out. We have also noticed with people buying on scrappage they are customers who are coming from at least a one job household if not two. The second car is being used for scrappage. That car would have been in the household for a number of years, probably used for school runs and with the scrappage that car has been updated to the main family car now,' explained Larry.

However, the availability of finance is still hindering business, with banks regarded as being 'locked up'.

'The availability of finance is still not great and is still a big factor in sales. It hasn't eased off any at all. The banks are still completely locked up. Even if you were good, had nothing against you, if you are young you are in trouble, the banks don't want to hear about you,' said Larry.

With current car sale trends Larry feels that Ireland has to follow England's lead and have two car registrations per year, which he says would help the trade.

With 22 years of experience in the motor industry, Larry said that 2009 was the 'worst ever' and doesn't believe that car sales will ever return to their record 2008 levels.

'I don't know how some garages stayed open,' he said.

The J. Donohoe Motors campus is slap bang beside the N11 at the Blackstoops roundabout, just outside Enniscorthy. The prominent location has not provided the company with much shelter from the chill wind of recession, as Tommy Davitt concedes.

Jobs have been shed at Quarrypark over the past two years but, in true upbeat salesman style Tommy is now talking up the green shoots of recovery. He reports that Donohoe's have actually started hiring again after the long depressing drag of redundancy and re-deployment.

The reason is simple. Customers are returning and returning with money in their pockets: 'It is not like 2007 or 2008,' stresses Tommy, 'but we have good levels of enquiry and good sales.'

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