New car prices have risen nearly 20 per cent in the last five years, with the average price in November last year at €35,199, according to vehicle history website Cartell.ie.
The company compared the Open Market Selling Price of all new cars purchased between January and October in every year between 2003 and 2021. In that time, the average values have risen from €23,354.
It found the strongest growth in recent years is in the €30,000 to €40,000 price bracket, which now accounts for 35 per cent of sales, compared to just 10 per cent in 2003.
The reasons cited for the rise in prices vary from the current global chip shortage to a buyer preference for larger cars, particularly crossovers and SUVs over former favourites like hatchbacks and saloons.
Cars are also more expensive to produce, with car companies increasing safety equipment and technology in order to achieve higher NCAP safety ratings, while the move towards hybrids and all-electric vehicles is proving costly.
John Byrne of Cartell.ie said: “This is the first time that the €30,000 to €40,000 segment is the strongest selling tier of the market. Certainly cars are laden with technology including the roll-out of Advanced Driver Assistance Systems Features (ADAS): this adds to the cost of manufacture of the vehicle but it also means new cars are surely the safest they’ve ever been.”
