Cartell.ie, the vehicle history and data expert company, has revealed that the average value of a new car bought in Ireland in 2020 was €33,287 - the highest figure on record and also the third time this figure has exceeded the €30,000 mark.
Impact of 2008
Cartell looked at the average Open Market Selling Price (OMSP) of all new cars purchased between January and October in every year between 2002 and 2020. Somewhat unsurprisingly, the general trend is that the average OMSP in Ireland rises year-on-year, starting at €23,395 in 2003. It rose to €28,102 in 2007 and then €28,051 in 2008, before the financial crisis of that year depressed the figure down to its second-lowest point in 2010 of €24,094 (it was €25,873 in 2009, presumably as some consumer confidence still lingered in the immediate wake of the downturn).
From then on, it has steadily risen again, surpassing its previous high with a record of €28,567 in 2016 and then going past the €30,000 barrier in 2018 (€30,161) and 2019 (€31,536) before hitting the peak in 2020.
Beyond this, the strongest growth in the new-car market over the past number of years falls in the €30,000 to €40,000 price bracket, constituting 32 per cent of the total. This makes it the second-most popular bracket overall, behind €20,000-€30,000 (34 per cent) - this sector falling off noticeably since 2012, when it constituted 53 per cent of the market. Even the high-end bracket of cars costing between €40,000 and €60,000 has seen considerable growth, rising from 12 per cent of the market in 2018 to 19 per cent in 2020.
Pricier, tech-laden cars
Cartell suggests various reasons to explain why Irish consumers are spending more money than ever before on their new car, such as: a growth in demand for more expensive vehicle types, like SUVs, crossovers and MPVs; buyers having more cash to spend or more available lines of credit; buyers wanting larger cars, as the population of Ireland has increased by more than 500,000 people between Census 2006 and Census 2016, meaning families now require bigger vehicles; new cars simply being more money these days, as they are more expensive to manufacture and also buyers demand high-specification machines more than cheaper variants; and increased consumer demand for electric and hybrid vehicles.
Jeff Aherne, innovation lead at Cartell.ie, said: "These results show that buyers are willing to purchase more expensive cars. Vehicles are tech-heavy now, with manufacturers offering multiple technological enhancements to vehicles. This is undoubtedly contributing to the price. Cars are also laden with safety features, which increases the cost of manufacture for the vehicle. Ultimately, the buyer is prepared to buy more expensive vehicles and the availability of various different finance offerings may also be playing a role in this."