Some old cars are now more valuable than their new ones, a new study finds.
A new report by The deal is done shows that inflation for used cars has risen to an all-time high of 56%, increasing by 7.7% since October 2021.
The price gap between new and used cars is narrowing and in some cases older versions of the same model are being listed at higher prices than new cars, which experts say is “unprecedented situation”.
Consumer demand on DoneDeal for both New and Used Cars from Ireland’s Auto Dealers is also at an all-time high – up 80% in January 2020, January’ normal’ final for comparison purposes.
The used car shortfall is around 125,000 units above normal trading conditions, according to the DoneDeal Auto Price Index.
In previous years, the supply of used cars in Ireland was supported by a surplus of Celtic year Tiger cars. However, this group of aging cars is quickly becoming obsolete, making it most difficult for the low-end market.
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This explains the 83% price inflation rate as of January 2020 for cars under 3,000 euros. This contrasts with the more modest inflation rate of more than 30% in the upper end of the market (cars worth 13,000 euros or more) during the same period.
While rising car prices are bad news, consumers looking to trade in their used cars could benefit as auto dealers are looking to buy used cars.
Economist and report author, Tom Gillespie, said: “In 2019, just before the pandemic and Brexit started, we imported 108,000 cars from the UK, in 2020: 74,900 and in In 2021, the total number of used cars imported from the UK is only 47,034, down 56% compared to the level of 2019.
“Based on these numbers, the used car deficit is in the 125,000 region above normal trading conditions.
“In previous years, the supply of used cars in Ireland was supported by a surplus of Celtic year Tiger cars.
CELTIC TIGER CARS OBSOLETE
“However, this group of aging cars is rapidly becoming obsolete, making it most difficult for the lower segment of the market, to explain the 83% inflation rate for cars under 3,000 euros observed. seen since the pandemic.
“This is in contrast to a more modest inflation rate of more than 30% in the upper end of the market (cars worth 13,000 euros or more) during the same period.”
The study also found that 70% of people surveyed as part of the study accompanying the price index, said they intend to buy Electricity Within the next 5 years.
https://www.thesun.ie/money/8188052/used-cars-inflation-cheap-expensive-prices-ireland-donedeal/ Your used car could be worth a fortune