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Buyers willing to spend more on new cars

New cars

New car buyers appear to be happy to spend a little bit more on their new vehicles these days. A study by vehicle history and data expert Cartell.ie and car sales platform CarsIreland.ie. shows that the average price rose above the €35,000 mark in 2021. With most buyers paying between €30,000 and €40,000.

Cartell.ie examined the average Open Market Selling Price of all new cars bought between January and October from 2003 to 2021.

The results indicate that the average price of a new car in 2021 was €35,199, making it the fourth year of averages exceeding €30,000. The strongest growth in the new car market is in the €30,000 to €40,000 price bracket. More people it seems are buying at the higher end of the market (€40,000 to €60,000).

Possible reasons for extra spend

– Buyers are opting for more expensive vehicles or vehicle types, such as SUVs and crossovers

– Manufacturers may be prioritising the sale of higher-end models and/or increasing prices owing to the global chip shortage

– Buyers have more cash to spend or more available lines of credit  

– Buyers want larger cars – for example, to cater for their children

– Vehicles are more expensive to make to comply with safety and environment regulations and buyers expect higher specs – such as larger wheels, alloys, on-board technology and advanced driver assistance systems

– Increased demand for EVs and PHEVs

LSL News.

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