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USED CAR PRICES are now nearly 50% higher than they were just before the beginning of the pandemic in January 2020, a survey reveals.
The report, published by DoneDeal, found that the pandemic and “Brexit-induced shock” has had a “staggering effect on prices”.
In just three months since June 2021 used car prices have increased by 10.6%, the largest quarterly price inflation seen in used car prices in Ireland since the start of the DoneDeal data in 2011.
“Not only are prices still increasing but also the rate of increase appears to be speeding up, not slowing down,” the report found.
“DoneDeal’s Car Price Index, modeled by TCD and NUIG economist Dr. Tom Gillespie, shows that depreciation and increased mileage is still making cars cheaper, but the overall price inflation (from decreased supply and increased demand) is eclipsing that negative effect, and therefore cars are appreciating in value for many models.
“The number of cars required to bring prices back to ‘normal’ levels is in the region of 110,000 additional cars based on pre-pandemic levels,” the report added.
The study found that the Car Price inflation appears to be much more acute at the lower end of the market where supply is constrained due to fall out of the end of life Celtic Tiger cars and Brexit reducing the number of imports.
“Choked supply due to Brexit and pandemic-induced delays on the production of new cars - coupled with increased demand from increased savings – are widely cited as causes of this abnormal price growth, and these contributing factors are showing few signs of abating in the short term.
“The pandemic and Brexit-induced shock to the market has had a staggering effect on prices – used car prices are now nearly 50% higher than they were just before the onset of the pandemic in February 2020.
“Although the pandemic-induced supply shock has affected most car markets globally, Ireland’s case is exacerbated due to the compounding effect of Brexit. New barriers to trade have disrupted the regular flow of UK used cars into the Irish market.
“Imported used car registrations are declining fast from a peak of 110,000 per year in 2019 to about 80,000 in 2020, and – with only 30,000 registered so far in 2021 – this year may see only half the 2019 number of used cars being imported into Ireland,” the report found.
Demand for cars has increased, the report suggests, due to the pandemic causing an increased reliance on cars.
“For example, people moving out of cities are necessarily more reliant on cars as public transport is less developed and operating at a reduced capacity due to restrictions,” the report speculated.
The problem of increasing costs appears to be worst at the lower end of the market where supply is constrained due to end-of-life Celtic Tiger cars and Brexit reducing the number of imports.
Inflation is lower in the upper quarter of the market in cars worth €13,000 or more, running at 3.9%.
The report said that to bring the prices back to pre-covid-19 levels there is a need for 110,000 additional cars. Cash buyers make up around 50% of the market at present, DoneDeal says.
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The government should pay for this coarse out of their massive wages to help the people they are abousing with their policies
Any chance of training up the bank managers as well.
The following is not a some kid of sick joke.
A person in deep mortgage distress from our area went into one of the “pillar banks” recently to discuss her mortgage.
During the conversation,
the senior bank official said this mortgage is “like a noose around your neck” on numerous occasions.
Is this course for the benefit of employees or employers? It might appeal to some people to be the mental health police and simultaneously get an ego-boost from “hey, I saved a life today”. Not to mention the handy hints on how to get your team back to full productivity if an unfortunate incident does take place.
Employers are already tasked with ensuring that employees are respected in the workplace and can get on with their jobs with dignity. We know that many fail in this regard. We also know that taking an interest in people’s life outside work and being prepared to make allowances when some-one is under stress, is part of being human.
A course of how eradicate workplace bullying, reduce employee stress and foster workplace relationships sound like a good idea but isn’t very headline-grabbing. Personally I find the idea of my employer watching my colleagues and me, weighing up our chances of suicide and stepping in only when they feel – in their entirely unqualified opinion -that lives are at stake, creepy.
you’re right Jone. strange, all thumbs down, they must condone bullying in work but its not ok for children to do it online, which is been widely broadcast these days. its almost like yea join the crowd and feel safe you’re not alone in supporting to stamp it out. never surprises me.
what you talk about there is huge, goes on in many places espeically now was ‘they need to push production’ the balance out the profits. produce what? less are buying, so pack it in and perhaps work for other ‘ethically sound’ employers? they might treat you right and teach you how to run a business with manners.
i won’t say most, i’ll try to remain hopeful it does exist but most of the places i worked, they couldn’t give a **** about this article and only want to know ‘when will it be ready?’ ‘i wanted that yesterday’ spoken over your shoulder when you least expect it, an intimidating tactic, while behind you the workplace bully is doing their bit. Ha i had one where i worked, one day they were out, had to work off their computer, their browser history for the day before was all based around searching for help on ‘self esteem’. I felt well, ok, at least they’re trying to help themselves but it proved one thing, that there was a bully inside. It is one of the most common traits of a bully, that and denial. Monsters in the work place, halloween every day.
Another day on the journal suicide abortion and misery …. Any good new folks we will all be depressed by association if we leave it to the journal
Angela, when you awoke this morning it was the beginning of another day when YOU can make the difference. Firstly the good news for yourself is that you are able to communicate , to think , to love,to change whatever is in your power to change. You can make someone happy today if you wish. Even a simple smile might help.
You make the good news happen by being a decent human being. It costs nothing.
I am a decent human being who just happens to think that all this negative news only adds misery to those who are not in the best of form John …
Suicide is what people are thinking about and hopefully talking about Angela that is why it is news as it has to be addressed. Maybe some of those not in the best of form will be grateful that there is some talk about this terrible problem today and see hope in it?
Too much nanny crap. I suppose one day others actions will all be our fault? I just would not go to a course like that. A person decides to commit suicide. Who am I to stop them? Why is it my business?
have your say