Price of used cars up 63.7 percent since the start of the Covid pandemic

The price of used cars is now 63.7 percent higher than just before the outbreak of Covid-19.

Since there are signs, the market is beginning to stabilize.

According to the DoneDeal Car Price Index, prices have risen by an average of 5.9 percent per quarter over the two years since the pandemic began.

“In the two years before the pandemic, the average quarterly inflation rate was 0.8 percent, but in the second quarter of 2022 prices are now 63.7 percent higher than just before the outbreak of Covid-19,” the report said.

The study was conducted by Dr. NUI Galway environmental economist Tom Gillespie, who said the Irish used car market has acted “as a canary in the coal mine” for inflation in the broader economy.

His analysis of “demand-related metrics” on the online marketplace has found that car demand is down 2.4 percent year-on-year but is still 12.4 percent above pre-pandemic levels.

On the supply side, while the deficit in new cars is still “very acute” compared to pre-pandemic levels, year-on-year supply is up 2.1 percent compared to the same period in 2021.

“However, year-to-date used car imports have fallen by 32.6 percent compared to the same period last year. This new balance between supply and demand has meant that price inflation has slowed somewhat to 3.9 percent in the second quarter of 2022, showing signs that price volatility in the overall used car market may finally be stabilizing,” said Dr. Gillespie.

His analysis found that the price of cars at the lower end of the market – valued at €6,000 or less – is up 96.9 percent since the pandemic began, while more expensive vehicles – valued at over €19,000 – are now up 43.8 percent percent are more expensive.

At the same time, the demand and the price of used hybrid and electric cars are also increasing.

The “Car Price Index” analyzed over 5 million vehicle offers from DoneDeal from 2011 to 2022, while the statistics used in the report are based on cars advertised on DoneDeal.ie, in addition to a survey of 2,000 people commissioned by the company, and publicly available information about the Irish automotive industry.

https://www.independent.ie/news/price-of-used-cars-up-637pc-since-covid-pandemic-began-41856374.html Price of used cars up 63.7 percent since the start of the Covid pandemic

Fry Electronics Team

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