ALMOST 8,000 new cars have been sold in Cork so far this year, representing a 14% increase on last year.
The figures were revealed in DoneDeal's Q3 Motor Report.
In Munster there has been a 16% increase in new car registrations in 2021 versus 2020 but a 20% decrease in new car registrations in 2021 versus 2019.
Diesel cars have been the most popular car this year in Munster, with 6,008 sold so far closely followed by electric cars (5,171), then hybid cars (4,162) and finally petrol cars (852).
DoneDeal's latest report also introduces DoneDeal's Used Car Price Index.
According to this newly developed index, modeled by TCD and NUIG economist Dr Tom Gillespie and based on DoneDeal's car dataset, used car prices have increased by 40% nationally in the year from June 2020 to June 2021.
“Of the numerous economic phenomena that have emerged in the past year, the behaviour of the used car market is surely one of the strangest. Until the outbreak of Covid-19, the depreciation of a car’s value was as much a certainty as death and taxes.
It says that the explanation boils down to supply and demand.
From a supply point of view, the disruption to the production of raw materials and parts and even the Suez Canal blockage has led to longer waiting lists for new cars, the report states.
As a result, consumers are turning to second-hand cars.
Although the pandemic-induced supply shock has affected most car markets globally, Ireland’s case is “exacerbated due to the compounding effect of Brexit”.
On the demand side, there are a number of contributing factors including an increase in people’s reliance on cars. Another element on the demand-side is the reallocation of income.
The report adds that enquiries on both new and used cars for sale on DoneDeal have increased significantly.