Carzone, the big second-hand car sales site, has released its annual motoring report, looking into the wants, wishes and habits of Ireland's car buyers. And it's found some interesting trends among the 1,000 Irish drivers polled in its survey…
Are people starting to shift to electric?
Yes, but slowly, and most are interested in doing so - 55 per cent - because of the potential lower running costs. However, 33 per cent were still concerned about the price of electric cars and also expressed worries over the cost of charging.
Diesel still makes up the biggest chunk of the market of what people reckon they will buy next - 29 per cent - with 26 per cent planning a hybrid, 22 per cent planning a petrol engined car and ten per cent going electric. That probably speaks to a continuing reluctance around EVs in the second-hand market, because the Carzone survey includes used and new car purchases.
Overall EV confidence is still quite low, with 71 per cent of respondents saying that there aren't enough chargers, 69 per cent saying EVs are too expensive, 62 per cent feeling that charging takes too long, 59 per cent concerned about faster depreciation, 58 per cent saying they're concerned about insufficient range, 54 per cent saying that they're worried about the environmental impact of batteries, 53 per cent saying that EVs are less reliable, 50 per cent worrying about having to replace the batteries and 47 per cent feeling that EVs are still too expensive to run. Clearly, there's still a job of education to be done when it comes to battery cars.
What are the other changes?
One big change is that Irish car buyers are swapping their cars more frequently. That may not sound like much of a thing, but with the average age of cars on Irish roads hitting nine years old recently, it's actually quite a big move, and indicates that Irish car buyers are no longer happy to hold on to older models for longer.
According to Carzone's figures, the average frequency of changing a car has fallen from 5.6 years to 5.2 years. That's a significant swing, and it could start to bring down the average age of the Irish car fleet if the trend continues.
What about buying new cars?
Yes, that's on the rise too. Some 34 per cent of respondents this year said that their next car will be a new one, as opposed to 28 per cent in the previous survey. That potentially indicates that Irish buyers are keen to grab incoming new car technology, including electric cars. Buyers are also saying that they're prepared to spend more on their next car - €1,900 more - but given price inflation that may be less of a 'choice' thing.
What do people want in their new cars?
This is where things become more consistent. Price is the biggest factor in a new (or at least new to you) car purchase, followed by reliability and running costs. The average budget people are putting forward for their new purchase is just under €25,000, and 40 per cent of people will fund their new car through cash or savings, with 19 per cent turning to a credit union and 14 per cent to a personal loan.
That said, 55 per cent of car owners have used finance for their car, and 75 per cent of them feel that it makes buying a car more affordable.
What cars do people want to buy?
This is another significant area, and actually it shows something of a major disconnect between the new car market in Ireland and the used car market - which is far bigger; 86 per cent of owners currently own a used car.
While SUVs dominate the new car sales charts, according to Carzone, Irish buyers aren't actually all that keen on SUVs - the Volkswagen Golf is still the car that's most-searched for on Carzone's website, followed by the BMW 3 Series and BMW 5 Series. The first SUV on the list, the Hyundai Tucson, only comes in fourth place, and that's followed by another saloon - the Mercedes-Benz E-Class.
What about the car-buying experience?
Some 40 per cent of people feel that buying a car is exciting, but a significant 25 per cent still find it stressful, indicating that Ireland's car dealers might need to change their sales style. A quarter of all buyers say that they use dedicated car review websites - just like CompleteCar.ie - to research their purchase before heading to the dealership. Buyers also said that they would be far more likely to buy a used car if it came with a verified vehicle history check.
Meanwhile, 17 per cent of people said that they've used AI to help with their car purchase, but only slightly more - 19 per cent - believe that there will be a fundamental shift in car buying habits in the next ten years. Most believe that at least some human interaction will be needed. Better luck next time, ChatGPT.
What about the running costs?
Overall, cars in general have become more expensive to run, with owners reporting that they're spending an average of €224 per month on running a car, and more than half - 53 per cent - saying that they've cut back on driving because of the cost of fuel. Insurance remains the primary cost concern - 66 per cent said so - and 75 per cent said that they've seen a change in their insurance costs, mostly upward.
Finally, we really still seem to need our cars - 96 per cent said that car ownership was important to them, with a higher proportion of women - 57 per cent against 49 per cent for men - saying that they see a car as 'essential'.