The average monthly cost of running a car is now €224, according to a new report from Carzone.
A survey of 1,000 Irish motorists in November found 54 per cent had experienced a rise in insurance premiums last year. Although most shopped around for a better deal, 64 per cent ultimately stayed with their existing provider.
When it comes to changing cars, price remains the dominant factor. Most buyers expect to spend less than €25,000, although average budgets rose by €1,900 compared with last year. Older motorists are prepared to spend more, with those aged over 65 planning to spend an average of €30,400.
Used cars still dominate the market, but 34 per cent of those surveyed said their next car will be new, up from 28 per cent a year earlier. The average time Irish motorists keep a car fell slightly to 5.2 years.
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Just 10 per cent say their next car will be electric, with lower running costs and environmental impact cited as the main motivations. However, concerns remain, with 71 per cent saying there aren’t enough public chargers and 69 per cent saying EVs are still too expensive.
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The survey showed 29 per cent expected their next car to be diesel, 26 per cent hybrid or plug-in hybrid, while 22 per cent were likely to choose a petrol version.
Despite the influx of new brands, particularly from Asia, brand loyalty remains strong, with 79 per cent saying they would buy the same brand again.
Even with rising costs and prices, car ownership remains central to daily life, with 96 per cent saying that owning a car is important and 53 per cent describing it as “essential”. Women and those over 45 years of age were most likely to rate car ownership as essential.
Conor Faughnan of Carzone said: “We’ve seen that the average household is spending approximately 15-20 per cent more of their disposable income on motoring compared to 20 years ago, so it has been a long-term trend. This is driven both by rising costs, and by the types of cars households are purchasing, with trends moving away from hatchbacks to SUV-style cars in recent years.”
