Vehicle data expert CARTELL.IE has reported that it has seen an increase in overall levels of finance for key years. From a sample of over 5,906 vehicles offered for sale and checked via the Cartell.ie website in the year 2022, the figures show that a 1-year-old vehicle now has a 32 percent possibility of being on finance, up 1 per cent for the equivalent figure 12 months ago, but still lower than the figure of 34% recorded 2 years ago. Readers will recall that last year the comparable figures showed a decline in financing level, over those recorded in 2020, which we attributed to a slow-down caused by the pandemic. The market has subsequently begun to correct itself: finance levels for a two-year-old vehicle have risen to 35% – up from 33% last year.
In the case of three-year-old vehicles (2019) the levels of vehicles offered for sale with finance outstanding is 32%. This means there is still more than a one-in-three chance of a three-year-old vehicle being offered for sale with finance outstanding and the overall level has risen slightly from the same period last year. In the case of four-year-old vehicles checked in 2021 there was a 20% chance of a vehicle from that year being offered for sale with finance outstanding based on checks on Cartell.ie in the year gone by, but, like other key years the four-year-old-car level of finance has increased – to 21% this year.
Older vehicles are also showing relatively high levels of finance: a six-year-old vehicle, for example, shows 16% with outstanding finance in 2022 whereas the comparable figure last year, in 2021, was lower – 15%.
Ross Conlon, CEO CarsIreland.ie and Group Director New Business at Mediahuis Ireland, says: “We are witnessing a market correction: the overall percentages of vehicles offered for sale with finance outstanding in key registration years has risen again since the declines recorded in 2020. Buyers should we aware that there is now a one-in-three chance that a vehicle three-years-old or less is for sale with outstanding finance.”
“Buyers are strongly advised to be cautious in the market as you cannot take good title in the asset until the final payment has been paid to the financial institution. This means you may be buying a huge problem.”
The reasons for the increase seen between 2021 and 2022 is likely due to increased market activity, opening up of markets since the pandemic shut down.
