
3 minute read
Used car price inflation slows
A recent survey from Done Deal has found that the quarterly price inflation rate slowed from 2.7% pre pandemic to 0.9% in the second quarter of this year.
Done Deal reported a decrease in demand and increase in the stock of used cars advertised on its site resulting in the lower rate of increase. Prices are still 79% higher than pre-pandemic however and this differential looks set to continue in the short term. The market for new cars is also growing.
The unblocking of supply chain issues in the motor industry has led to a reduced waiting time for new models. According to the Society of the Irish Motor Industry (SIMI) 19,440 new cars were registered during quarter two of this year, representing an increase of 27.4% compared to the same period a year ago. Imports increased slightly but only by 0.7%. Imports from the UK continue to reduce, now at 28.8% of the imported market, compared to 93.6% in 2020. Recent figures from SIMI show the growing numbers of new EV registrations, which will trickle down into the used car market as the year progresses. For the month of June 1,441 new electric vehicles were registered compared to 188 in June 2022 (+666.49%). So far this year 14,307 new electric cars have been registered in comparison to 8,446 (+69.39%) on the same period 2022. Electric Vehicles, Plug-in Hybrids and Hybrids continue to increase their market share, with a combined market share (year to date) now of 43.63%. Petrol remains the largest share at 31.85%, Diesel accounting for 21.87%, Electric 18.46%, Hybrid 17.37% and Plug-in Electric Hybrid 7.80%.
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