Car Prices 63.7% High Than Pre-Pandemic Amid Soaring Demand

Anyone planning to buy a car now will pay 63.7% more than before the COVID-19 arrival. And a report stated that surging costs are canary within the coal mine for overall economic inflation.

Meanwhile, the DoneDeal Motor Price metric indicates that the cost of cheap vehicles runs at around 100% more than before the pandemic, translating to a knock-knee impact of strategies to handle emissions – and with more utilized electric cars required in the market. More

Meanwhile, car demand has plunged by 2.4% Y/Y, though 12.4% higher than pre-pandemic prices. DoneDeal’s author and economist, Dr. Tom Gillespie, stated that the new car deficit was acute, 19% down than 2019 levels, whereas user car imports declined by 32.6% YTD since the previous year.

Dr. Gillespie, and environmental economists associated with NUIG and TCD, said the prices are presenting stabilization signs. Though the unprecedented and numerous shocks impacting car demand and supply took a tool.

Inflation

Soaring living coast plus hiked interest rates have dented demand as inflation plague the broad economy. The considerable and consistent post-pandemic inflation in cheap vehicles means the prices are 96.9% higher than pre-pandemic readings.

Remember, cheaper cars will always have demand for individuals that cannot afford expensive and cleaner cars. Thus, the prices within the market’s lower end will likely keep surging until cheaper vehicles in the United Kingdom and tariffs compete with Ireland’s equilibrium price levels.

Meanwhile, this remained problematic from an emissions decrease standpoint. That’s because older cars emit substantially higher levels of harmful particulates and CO2.

The report indicated that Ireland will unlikely hit its EV goals for 2030 without substantial upticks in used EVs within the marketplace, regardless of the attractive surge in new electric vehicle sales.

The dramatic surge in new AVs share is yet to reflect in the used car market, with EVs representing less than one percent of 2nd-hand cars, and the number didn’t show much increase signals within the past few months.

Meanwhile, Q3 2022 has prices 67% higher than what individuals paid before COVID-19, whereas annual inflation stands at 21% Y/Y.

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