It might be the time to buy a used car because prices are going up.
Used car sales have continued to rise but as the amount of decent used cars dwindles the prices are going up. Buyers need to watch out for price changes on used cars especially from 2008 on.
The average price of a car listed online has risen by more than 5% this January, according to the latest figures from the car sales website CarsIreland.ie which currently keeps track of over 40,000 new and used cars.
Although this is a mainly positive sign of recovery in the market it is thought the increase could also be down to a shortage of supply of good quality used cars after several years of poor new car sales during the downturn.
Data from the same site last week revealed that the majority of year-based searches in January were for models from 2008 onwards. This is most likely to be down to the new emissions-based motor tax system which came into force the same year.
And while new car sales in 2008 were still at a relatively normal level of just under 150,000 – it also marked the beginning of a serious collapse in the motor industry, with just 55,578 new cars sold in 2009 and 67,782 in 2010.
Managing Director of CarsIreland.ie Mick Dillon says 'While a shortage of used cars is most certainly an issue lately – there are many reasons why car prices might rise in January and we'd like to think that this year it is a sign of a more permanent recovery in the used car market.'