€30k to keep up with the Joneses
How much will you spend on your next new car? If you want to keep up with the Joneses, then you’re looking at €30,130. That’s the average amount being forked out, according to vehicle history and data company cartell.ie – the highest figure since it began collating spending figures in 2006.
The company calculated the total value of new vehicles purchased in Ireland between 2006 and 2018, based on the recommended open market selling price (OMSP) and divided the total value (a staggering €5.08bn in the peak year of 2007, compared with €1.4bn in 2009 after the economy tanked) for each year by the number of new vehicles sold that year to establish the average value per buyer. In actual terms, the cheapest year was 2011, when we were spending €24,758; last year, that number reached €29,481, before passing through the 30 grand barrier in the first six months of 2018.
One of the factors driving the increase very likely is the relatively modest difference between monthly PCP repayments on base models and those with added kit, making it more affordable to opt for higher trim levels.
Cartell also points to the popularity of SUV and crossover bodystyles – usually more expensive than our traditional hatchbacks – and also hybrids, because buyers are willing to shell out more actually buying the car in the expectation they ultimately will recoup the premium price through the savings on fuel costs and motor tax.
There also is increased demand for bigger cars, reflecting the population growth of over 500,000 between the censuses in 2006 and 2016. More children mean more space is needed.
Cartell is keen to underline, though, that the survey is based solely on the OMSP and the company’s legal and public relations manager John Byrne stresses that ‘the actual deals struck between the buyer and the seller will vary widely to account for discounts, sales events and trade-ins’.
In short, the best way to keep up with the Joneses is to shop around and make sure you pay as little as possible for as much as you can get.