A new survey of used car prices by the car history experts at Cartell.ie has found that the average Irish car is now worth eight per cent more than it was this time last year.
Sample of 5,000 used cars
According to Cartell.ie, in the past 12 months most people's cars have actually appreciated, rather than depreciated. The survey sample looked at 5,000 cars of varying age, and assumed an average mileage for each one. Some of the results are really quite striking.
For example, a 161-registration Volkswagen Passat diesel saloon, which was worth €14,900 in 2020, is worth €19,500 today - a rise of €5,000. An Opel Corsa from 2008, worth a mere €1,650 in 2020, is now worth €2,450. A Ford Focus from 2011, worth €3,950 two years ago, is potentially worth €5,550 today. A 2005 Skoda Octavia, which would have netted you just €500 in 2020, could today be worth as much as €1,550.
Cars as young as four years old
Even more recent cars are seeing a boost in price. A 181-registration Renault Captur for instance, would have been worth €15,850 in 2020 and today could fetch €18,400.
The average increase across all models and brands was 7.78 per cent, and even that is a significant decrease on the 2020-2021 figure of 15.2 per cent. All of the figures were arrived at by using actual, specific vehicles and running them through the Cartell Price Guide calculator.
Strangled factory output
Why is this happening? Simple supply and demand. With fewer new cars arriving on the market thanks to the supply chain issues - especially the supply of computer chips - that's strangling factory output, many buyers who would normally buy a new car are now looking to the used market. That's triggering a scarcity of used cars, which trickles all the way down to even the lowest-priced stock.
Ross Conlon, CEO of CarsIreland.ie and Group Director New Business at Mediahuis Ireland said: "These results show that vehicle values in the used market have continued to push upwards since we last published results in 2021. While the rate of increase has declined it is still a significant event that values have risen - cars are considered a depreciating asset after all. While microchip shortages appear to be levelling out there are still issues around availability of new vehicles and this is consequently pushing values up in the residual market. We expect to see the rate of increase decline further over the next 12 months."