The value of second-hand vehicles is now 63.7pc extra than simply earlier than the onset of Covid-19.
owever there are indicators the market is starting to stablise.
In accordance with the ‘DoneDeal Automobile Value Index within the two years for the reason that pandemic started, costs rose consecutively by a median of 5.9pc per quarter.
“Within the two years previous to the pandemic, the common quarterly fee of inflation was 0.8pc, however, as of Q2 2022, costs at the moment are 63.7pc greater than they have been simply earlier than the onset of Covid-19,” the report states.
The examine has been compiled by NUI Galway Environmental Economist Dr Tom Gillespie, who mentioned the Irish used automobile market has acted “because the canary within the coalmine” for inflation within the wider economic system.
His evaluation of “demand associated metrics” on the net market, has revealed that automobile demand is down 2.4pc year-on-year, however nonetheless 12.4pc above pre-pandemic ranges.
On the provision aspect, whereas the deficit for brand new vehicles continues to be “very acute” when in comparison with pre-pandemic ranges, year-on-year provide is up 2.1pc when in comparison with identical interval in 2021.
“Nonetheless, used automobile imports are down 32.6pc for the yr up to now, in comparison with the identical time interval final yr. This new stability between provide and demand has meant that the speed of worth inflation has slowed considerably to three.9pc in Q2 2022, thus giving indicators that the worth volatility within the general marketplace for used vehicles would possibly finally be stabilising,” Dr Gillespie mentioned.
His evaluation revealed that the worth of vehicles on the decrease finish of the market – value €6,000 or much less – has elevated by 96.9pc for the reason that begin of the pandemic, whereas dearer automobiles – value over €19,000 – at the moment are 43.8 computer dearer.
In the meantime, demand for and the worth of used hybrid and electrical vehicles can be growing.
The ‘Automobile Value Index’ analysed over 5m of DoneDeal’s car listings from 2011-2022, whereas the statistics used within the report are based mostly on vehicles that are marketed on DoneDeal.ie, along with a survey of two,000 individuals, commissioned by the corporate, and publicly obtainable details about the Irish motor business.