MARKET STAGNANT BUT SIGNS OF RESURGENCE
Used Car History Check expert Cartell.ie reports today (31 Oct 2012) that the proportion of vehicles offered for sale with finance outstanding remains stagnant at 11%. That figure has remained consistent for the last 12 months, leading the company to believe that finance levels have tapered off at just above the 10% mark. Historically, the highest level recorded by the company is 16%.
The reasons for the drop in levels are attributed to a combination of factors:
(i) decreasing availability of finance in the market place
(ii) the increasing average age of Irish vehicles (now over 8 years), meaning finance is less of a factor in sales as older vehicles change hands
Statistics published by Cartell.ie indicate that buyers still have nearly a one-in-five chance of purchasing a four-year-old vehicle with finance outstanding. From a sample of over 5,906 vehicles offered for sale and checked via the Cartell.ie website in 2012, the figures show that 18% registered in 2008 are still on finance – and more than one-in-five of 2011 registered vehicles are offered for sale with finance outstanding. This latter figure, for 2011, is an early indication of a possible resurgence in the motor-lending market.
However, vehicles as old as twelve years (registered in 2000) are still offered for sale on the market with finance outstanding. Buyers are encouraged to check their vehicle for outstanding finance before purchasing.
Director Jeff Aherne, Director of Cartell.ie says: “Just because a vehicle is older doesn’t mean it’s free of finance. Every day customers are getting caught buying an older car assuming the finance has been paid off.”
Notes for Editors
In many instances of outstanding finance a second or third owner has financed their purchase and subsequently sells the vehicle with finance outstanding, or the first owner sells the vehicle without settling their account with the bank.