GE Money Ireland says every cloud has its silver lining, especially if you want to get your hands on a used silver shadow. Latest figures from GE Money's Irish Used Car Index confirm that prices for second hand cars are declining. Year on year figures for May show that used values as a percentage of new prices have shrunk across almost all segments with the biggest fall seen at the luxury end of the market where 3 and 5 year old values have on average fallen by €2,000 to €3,000. At the other, and therefore cheaper, end of the market, percentage falls in price are broadly similar to those at the top end and reveal the first decline in year on year values since 2000.

Nigel Rutherford, Head of Auto Finance, GE Money Ireland, states, "This time last year, the last of the SSIA scheme was maturing with the expectation of increased sales on new and used cars. The market for used cars was strong and values were stable. Twelve months on and the picture has changed quite dramatically, signalling good news for consumers intending to purchase a used car." 

With used car values expected to remain low over the summer, the ongoing state of the economy will dictate to a large degree the movement of both new and used cars and hence the numbers that remain on forecourts over the summer period. Rutherford states, "While very good value exists in the used car market, downward pressures on prices are expected to continue throughout the remainder of the year. The extent to which this will be reflected in used car values will depend on the level of customer demand for new cars post July and the relative effect on trade-in values given the changes in VRT and road tax."

"The market is in the final stages of the switch to the CO₂ based system for VRT and Road Tax rates, with some dealers having already reduced prices to reflect the coming changes. Given the value currently available, this is clearly good news for consumers looking to buy a used car in 2008," adds Rutherford. 

May 2008

 May 2007

The GE Money Used Car Index is designed to assist car buyers in identifying which model years and segments offer the best value and when to buy or sell. It tracks all the top sellers in each segment throughout the country and issues a report which is updated on a quarterly basis. The index is prepared in association with Motor Trade Publishers Limited and was complied with reference to current used car prices pertaining in the market during the month of January 2008.

GE Money is a division of US industrial giant General Electric and employs almost 500 people in Ireland. It specialises in products such as Personal Loans, Mortgages, Credit Cards, and Auto Finance to individuals & businesses across Ireland.

Segment Examples:

Mini / City Cars -                  Fiat Panda, Ford Ka, Kia Picanto, Toyota Aygo etc.

Super Mini -                         Citroen C2, Fiat Punto, Ford Fiesta, Toyota Yaris, Volkswagen Polo etc.

Small / Medium Family -       Citroen C4, Ford Focus, Peuegot 307, Toyota Corolla, Volkswagen Golf etc

Large Family -                      Ford Mondeo, Nissan Primera, Renault Laguna, Toyota Avensis etc.

Compact Executive -             Audi A4, BMW 3 Series, Honda Accord, Mercedes C-Class

Executive -                           BMW 5 Series, Jaguar S-Type, Mercedes E Class etc.

Luxury -                               BMW 7 Series, Range Rover, Lexus LS, Mercedes S Class etc.