Vehicle data expert Cartell.ie reports today (02 October 2013) that 2014 may be a bumper year for new vehicle sales given the right incentives – due to an overhang of 42,000 vehicles which ordinarily would have traded-up in a pre-recessionary market environment.
In the biggest research sample of its kind Cartell.ie reports the recession has created a two-tier automotive market in Ireland.
Vehicles purchased on or after 2009 (post-2009 vehicles) are changing hands at the rate ordinarily expected of motor vehicles in Ireland – where a first owner sells the vehicle between 3 to 5 years generally due to auto-finance terms.
Vehicles registered between 2005 and 2008 (pre-2009 vehicles) are not changing hands as owners hold these vehicles longer. This is therefore increasing the average age of the fleet in Ireland and lowering the average number of owners for vehicles in these registration years.
Cartell.ie reports that owners of pre-2009 vehicles are finding it increasingly difficult to offload their vehicle and re-enter the market for a newer vehicle. This result is based on analysis of market transaction and ownership figures for used vehicles in Ireland.
The company found that 34% of all indigenous 2008 vehicles (i.e. vehicles first registered in Ireland excluding imports) are still on their first owner.
This is higher than the comparable figure for 2009 vehicles, which stands at 31%.