Irish motor retailers have had a difficult start to the year. New car sales dipped by 8% during the first quarter and commercial vehicle sales are also down.
The Society of the Irish Motor Industry (SIMI) has warned that 2017 will be an "unpredictable" year.
The author of the quarterly report, which was produced in association with Done Deal, economist Jim Power commented:
"Consumer behaviour remains relatively cautious. Personal expenditure on big-ticket items such as cars is being undermined by the ongoing upward pressure on the price of necessities such as motor and home insurance, private rents, private health insurance and housing.
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"Based on sales so far in 2017, it is possible that registrations for the full year could be 10% down on 2016," he added.
132,000 new cars are expected to be sold this year - that's down from 146,385 last year.
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Between January 2010 and March 2017, the average price of a new car has declined by 21.1%. The average price of a new car in March was 4.7% lower than the same month in 2016.
Driving is getting more expensive, petrol prices are up by 14.3% and diesel costs 18.7% more than it did last year.
The cost of motor insurance is 0.7% higher than last year and 52.2% higher than 2014.
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Alan Nolan SIMI commented, "Brexit continues to play a role in uncertainty. The decline in new car sales has been a nationwide trend in the first quarter of 2017.
"Used car imports increased by 56% while LCV imports were up 53% on the first quarter of 2016. Used car imports are primarily between 3 and 5 years old (49%) reflecting the shortage of second-hand cars during the registration period 2009 to 2013 and the over 6 years age group (37%)."