We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
PRICES FOR SECONDHAND cars are now 77.5% higher than they were at the onset of the Covid-19 pandemic in March 2020, according to data from Donedeal.
Figures for the first three months of 2023 showed strong consumer demand as prices grew by 4.6%, in contrast to the previous quarter where price inflation slowed to a 3-year low.
Between December 2022 and March 2023, monthly growth in demand on DoneDeal was significant, increasing by 21% in January and 15.5% in February.
A small increase in the supply of cars of 5.3%, was likely not enough to meet demand, leading to strong price growth in Q1, analysis from the online marketplace found.
The increase in demand has also been translated into an increase in new car registrations: In Q1 of this year, 58,107 new cars were registered, representing an increase of 16.5% compared to the same period a year ago.
Last quarter also saw a major boost in the stock of used electric vehicles listed on DoneDeal with almost triple the number of listings compared to any three month period in 2022.
In Q1 9,303 new EVs were registered in Ireland, representing an almost 50% increase compared to the same period last year.
Donedeal’s data was reviewed by economist Dr. Tom Gillespie, who observed that price inflation was at a 3-year low of 1.4% at the end of last year.
“This 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.”
He continued: “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.”
Imports also increased by 6.4% to a total of 12,385 in Q1 (the first annual increase since 2019).
The share of used cars being imported from the UK fell to a new low of 32.7%, compared to Q1 of 2020, when the share of all imported used cars coming from the UK was 93.6%.
Overall, used car imports to Ireland are down 53.5% in the first 3 months of 2023 when compared to the first three months of 2019.
To embed this post, copy the code below on your site
It hurts my eyes when I look at car prices in the UK and see how low the prices are compared to here. Should Government not drop the VRT to help out its citizens and encourage a price drop. No value in anything on this island anymore.
@Michael Mc Gee: we don’t need cheap british #DirtyDiesel dumping clogging up our breathing air.
@Gavin Tobin: i do
@Michael Mc Gee: the gov made it harder to bring in cars with the added Nox tax as well as VRT. I bought one over 4 years ago and saved 5 or 6k, better extras as well. I could sell it today here for what I bought it for if not a little more, which is ridiculous.
@Gavin Tobin: speak for yourself. My 13 year old diesel vauxhall is still going strong and will be around long after your electric car.
@Gavin Tobin: Give me a loan I don’t need to repay so I can afford an electric car and I’m good to go Gavin!
@Michael Mc Gee: Your mistake there is “to help out its citizens”. Not in this government’s interest to help anyone but themselves.
@Gavin Tobin: Ah yeah sure we are much better off sticking with driving the old bangers with big diesel engines that the country is full of.
Why bother replacing them with newer, more efficient models?
Great for the environment that. Robbing people for old crocks doesn’t help the environment like you think, it has the opposite effect, old bangers with high emissions will be the norm.
@Allora: I’ve a horse out the back that will last longer
@Michael Mc Gee: It would seem, based on the figures in the article, the Irish citizen’s don’t need help or incentive to buy cars.
@Gavin Tobin: I think you’re not understanding the point. Which is embarrasing for you as it’s real simple.
@Michael Mc Gee: The Irish government has never worked to make life easier for it’s peoples. We are livestock, to be bled. They could up the standard of car here in a year if they liked.
@Gavin Tobin: And who’s fault is that Gavin? Would it have anything to do with the push from Gov regarding diesel being a better alternative thus flooding the market. Oh yeah, joe public willingly pay for the bad decisions by our dear leaders.
Pandemic? It’s not the Pandemic. The pandemic opened the door to working from home so many are less reliant on a car.
It’s Brexit. Are we not allowed say that word?
The UK was the biggest source of second hand cars here. Look at the fall off in the number now being imported from there.
@Liam: Fair point
@Liam: The Gov seems to forget that the UK is the closest import market that have stock with the steering on the correct side of the dash. We cannot buy cars in the Eu because they are not suitableThis leads to supply constraints.
The garages still give you nothing when you trade in and are looking for more money than ever on top on your own to get your next car! It’s scandalous! Yet the government do nothing! I bought a new car 5 years ago for €32000 the same car is now €50000! Garage offering €18000 for my own! So now it’s over €30000 to come up 5 years! So really the garages are giving you nothing for your car!
@John: then don’t buy a new car.
Sweat the asset as much as possible to save you a fortune.
@Ciaran Foster: Great advice there.
I bought a one year old car with very low mileage some seventeen years ago. It was about 33% cheaper than buying new.
I still have it and it is still going perfectly, never so much as even a “fail advisory” in the NCT. I reckon I’ll squeeze at least another 5 years out of it.
Far, far more environmentally friendly in terms of use of the earth’s resources than any EV will ever be. And great, great value.
The motor industry cartel lobbyists have gotten their way for far too long. The crazy taxes imposed on UK imports are closing down the market here and allowing vested interests to rip off the general public.
VRT, NOX and Import duty on 2nd hand cars from the UK needs to be abolished. We will end up with an old dangerous fleet of cars on our roads. The public need access to the UK market to update our stock of cars in this country and bring down the prices to an affordable level.
If this level of suppression of the market is allowed to continue for the benefit of the Irish car dealers against interests of the general public, it will lead to an increase in deaths on the roads due to an abundance of older cars. This issue needs to be tackled by the politicians who need to consider the best interests of the public over the vested interests of the motor car dealer lobby.
@Ken Murphy: don’t forget the VAT too. I bought a car in the UK for GBP6,700 late last year – by the time Revenue’s costs were added it came in at Eur14,000 … the Irish motor industry has been screwing their customers for years and Revenue are adding insult to injury.
The infuriating thing is that the few wealthy dealers would still make money. Not everyone would travel and manage the logistics if the VRT was lifted, they could still control the majority of import as they currently do. We are being fleeced and not by anyone except the people we voted for. Ridiculous.
All high mileage junk. No access to UK market due to GOV greed on vrt. SIMI cartel. They can keep them. The Irish Garages got what they wanted and yet still we have the public supporting this industry cartel by purchasing over priced junk.
The main problem is Revenue (via the Government) deciding OMSP – Open Market Selling Price for imported cars. This figure is pulled out of the air by revenue and not based on a sensible calculation like a percentage over buying price.
OMSP causes imports from Britain to be more expensive, so car dealers here put up their prices, leading Revenue to increase the OMSP once again, and it goes around in circles causing runaway inflation as we have seen.
OMSP is also ridiculous bureaucracy having staff wasting time making up numbers when a particular model eg TRDi 2.0 is not on their VRT enquiry system already. And we taxpayers pay their wages for this nonsense instead of them doing useful work.
It is time for a fixed % or none so the market can work without interference.
Why are there hundreds of thousands of old overpriced bangers in car dealers lots all over Ireland? This is cartel behaviour with Government acting as accessories.
have your say