Rise in used car prices continues - Kilkenny Live

Car prices are now 77.5% higher than they were at the onset of the Covid-19 pandemic in March 2020, according to latest information from DoneDeal. 

Figures for the first three months of 2023 are in stark contrast to the previous quarter, according to the online buy & sell website, as strong consumer demand saw prices grow by 4.6%. 

Between December 2022 and March 2023, monthly growth in demand on DoneDeal was significant, increasing by 21% in January and 15.5% in February.

The more modest 5.3% increase in the supply of cars was likely not enough to meet demand, leading to strong price growth in Q1.

The increase in demand has also been translated into an increase in new car registrations: In Q1 of 2023, 58,107 new cars were registered, representing an increase of 16.5% compared to the same period a year ago (SIMI). 

Q1 of 2023 also saw a major boost in the stock of used EVs listed on DoneDeal with almost triple the number of listings compared to any three month period in 2022. 

DoneDeal's Motor Report, written by economist Dr. Tom Gillespie, has developed a comprehensive used car price index and finds that car prices have experienced strong growth so far in 2023.

Dr Gillespie noted that that slowdown at the end of 2022, "resulted from weak demand and a modest recovery in supply. Slowdown in demand at the end of the calendar year is typical in Ireland as consumers wait for the new year to take
advantage of the relative price drop at the start of the calendar year.

"The outlook for 2023 was therefore somewhat uncertain: was the slowdown in demand part of the normal cyclicality of demand, or was it a sign of a longer trend of reduced consumer spending?" he said.

He also noted a switch to electric vehicles (EVs) in the data analysis by DoneDeal. 

"The steady transition of new EVs into the used car market is an encouraging sign from an environmental policy perspective, as an increase in supply should make EVs more affordable and encourage people to transition.

"It is hoped that the charging infrastructure development will keep in line with the increased number of EVs on the road, especially in rural Ireland, where car emissions per person are highest," Dr Gillespie said.