IMPORTING cars, so popular in the 1990s, is now a pointless and time consuming exercise, according to Autocar magazine.

The magazine reveals that domestic price cuts, faltering exchange rates and worries over import dealer quality are strangling the car import business. Dozens of companies have already gone out of business and more are likely to go bankrupt as the tide changes. Imports accounted for 123,000 new car registrations during 2001-02. But this year the figure is forecast to be 57,000 or lower as customers return to their local and trusted UK dealer.

Steve Sutcliffe, editor of Autocar, said: “It’s good news for the UK dealer network to see customers back in their showrooms. 2003 is forecast to be the second highest sales year on record with 2.5 million registrations, so it’s even better news for buyers who can get the cars they want, at a price they are happy with from the dealer they know.”

The historically high cost of buying a car in the UK began to tumble in 2000 after consumers campaigned for prices to be aligned with their European neighbours. As the campaign gathered momentum, thousands of Britons took advantage of the considerable savings abroad by buying their new, right-hand-drive cars through an import company - shunning the UK dealer network.

Those import companies still in business are now having to act as brokers sourcing their stock from UK suppliers. There is however one sector of imports that is continuing to buck the trend - 40,000 grey imports are forecast to reach UK shores during 2003. Grey imports are non-European vehicles, mainly from Japan, the most popular models being high-performance saloons and luxury 4x4s.