The Car Rental Industry Association (CARIA) is predicting that the car rental market will be severely impacted by the decision to leave the European Union.
The association’s chief executive, Mr John Daly, said the car market was the main driver of Irish growth and was currently experiencing the lowest annual growth rate in Ireland.
“We think there will be a significant reduction in the number of rental car drivers as a result of Brexit.
In the short term, the industry will see the drop in supply, which will result in higher rents,” Mr Daly said.”
This will lead to lower demand, lower turnover and lower profit margins.”
In the long term, we believe there will also be a reduction in demand due to the effect of Brexit on the local economy.
“For those renting cars, the impact on rental companies is likely to be particularly significant.”
The association has issued a series of warnings about the impact of Brexit and the impact that will have on the rental industry.
It said it would not be surprising if the number and quality of rental vehicles on the roads in the coming years declined significantly.
Mr Daly said the impact will be felt across the whole of the car leasing industry.
“It’s going to be an issue across the car industry and it’s going have an impact on the whole car industry,” he said.
The number of car rentals in Ireland fell by nearly one million in the year to the end of March this year, according to the latest figures from the Department of Transport.
This figure represents a drop of nearly one third in two years.
The CARIA said it expects the decline in the rental market to be more severe in the first two years of the new EU regulations than in the period from the previous EU-UK trade deal.
“The first three years are going to see the biggest fall in car rental volumes.
The second two years are likely to see a big fall, and the third year is going to have a big reduction in car rentals,” Mr Davis said.
Mr Davis said the industry was currently at a disadvantage as a consequence of Brexit, with the decline being due to a number of factors including the loss of thousands of UK jobs.
“There is a number who are leaving for work, there are people coming in from overseas to work and there are many other factors that have led to the decline.
We think that’s the most significant factor,” he added.
The car rental industry will likely lose up to 300,000 jobs in the next five years.
Mr Davies said the Government had done a good job managing the economic downturn in the country and the CARIA was hopeful that the new rules would be good for the industry.
He said the UK Government was “on the side of the industry”.
“I think they’ve put in place some very strong rules in terms of enforcing the rules of the road, ensuring there is a minimum level of investment and maintaining a level of security in the industry,” Mr Davies said.
“That’s good for them.”
Mr Davis also highlighted the Government’s plans to provide incentives to encourage people to buy a car, including a rebate of up to £1,000 on the purchase of a car.
Mr Martin said the CARMA was concerned that the Government was considering the removal of incentives and incentives for people to purchase a car and that the UK’s car rental sector would suffer the biggest loss of jobs.
The government has committed to introducing a new scheme for leasing a car to help encourage people into the industry, he said, adding that the scheme would “provide a significant financial incentive to lease a car”.
“It will provide an incentive for people, particularly younger people to do that, to rent a car,” he explained.
Mr Miller said the new schemes were “a good idea”, but it was important that the incentives were “fully enforced”.
“We have seen a number, I would say up to 500,000 people lose their jobs, and it is a loss that is disproportionately experienced by the older people and people with disabilities,” he told the BBC.
“So it’s very disappointing that the Minister is suggesting that we should do away with the incentives,” he continued.
“If there is any way that we can help the industry we are really keen to see that.”