Irish motorists are facing increasing financial pressures with 69% citing fuel costs as their top financial concern when it comes to running a car.
Our annual Motoroing Report, which examines trends in the Irish motoring industry, finds that a third (33%) spend between €201 – €300 per month on running costs and 23% spend upwards of €300 per month to keep their vehicle on the road.
The Carzone Motoring Report is compiled by analysing data from the 10 million+ searches carried out on Carzone from January to February of this year, as well as in-depth research carried out by 3Gem with 1000 Irish motorists.
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Cost of Living concerns
Unsurprisingly, fuel cost is the top financial concern when it comes to running a car for 69% of Irish car owners. The cost is front of mind for many, 40% say they always check the price of fuel before filling their tank and 41% sometimes check.
The high cost of fuel also means motorists are considering other modes of transport, with almost half of those surveyed (45%) using public transport more often.
Insurance remains one of the top financial concerns for 65% of motorists – and it seems to be on the rise, with insurance premiums increasing for 1 in 3 motorists (36%) this year. However, savings-savvy car owners are keen to secure the best deal possible, with 78% saying they shopped around for a more competitive quote before buying insurance.
When it comes to their next car purchase, almost half of Irish motorists say that fuel type is now the most important factor when considering their next model. Increasing costs are already impacting the choice of vehicle for many motorists, with 18% admitting they chose to buy a smaller car to save on running costs (fuel, tax, insurance). A further 33% said they have already downsized, or plan to downsize the number of cars in their household to cut back costs.
Going green
The Carzone Motoring Report finds that 35% of Irish motorists plan to purchase an electric vehicle or hybrid vehicle as their next car. Given concerns around rising costs across the nation, it’s no surprise that 57% of those who plan to purchase an EV or hybrid model say the main reason for considering the switch is cheaper running costs. Environmental benefits are the second most popular reason to purchase (50%).
The Irish government's recent decision to decrease private vehicle grant for EV’s from €5,000 to €3,500 effective from July 1st may prompt motorists to expedite their plans of transitioning to an electric vehicle.
Half (50%) of those not yet ready to make the switch to an EV cited concerns about the increasing cost of electricity. 1 in 2 (52%) motorists also said that the potential cost of having to install a home charger affected their decision not to switch to an EV.
Rising interest in new powertrain vehicles is also reflected in Carzone search data, which shows that EVs now make up 21% of new car ad views on the site. However, 50% still don’t believe the Government's target of having 945,000 electric vehicles on Irish roads by 2030 is realistic.
Buying a car
The Carzone report reveals that almost half (44%) of respondents usually change their car every 4-5 years and 27% change their car every 3 years or less. Almost a quarter (23%) budget between €1,000 - €5,000, 35% budget between €5,000 - €15,000, 22% have a budget of €15,000 – 25,000 and 19% plan to spend over €25,000 on their next car.
The rolling impact of the pandemic on the motoring industry is clear, with a third (33%) stating they had to consider other car brands or models due to stock shortages. The impact on the new car market is also evident, with 72% of motorists opting for used cars when it came to their most recent purchase.
Borrowing funds to buy a car remains popular with Irish motorists, with 46% intending to use car finance for their next purchase. Hire purchase remains the preferred form of car finance for 38% of motorists. Repayments are also important for car buyers, with 55% saying they are more likely to consider a car with monthly finance costs included in the advert.
Most searched cars
This year, the aspirational BMW 5 Series is the most popular car model motorists are searching on Carzone, followed by the firm favourite Volkswagen Golf. The premium BMW 3 Series and the Audi A6 claim third and fourth spot in Carzone’s most-viewed models, while the Mercedes-Benz E-Class takes fifth.
Electric and Hybrid vehicles only made up 10% of the respondents preferred fuel type, interest in electric and hybrid models continues to increase and this is reflected in rising electric and hybrid car advert views on Carzone. The Audi E-Tron claims the top spot as Carzone’s most-searched electric model in 2023 thus far. The premium Tesla Model 3 remains high on electric car buyer wish lists in second place, while Volkswagen’s ID.4 is third. In terms of plug-in hybrid models, the BMW 5 Series has jumped to the most-searched plug-in hybrid model on Carzone, followed by the BMW 3 Series and the Volvo XC90.
Commenting on this research, Karl Connolly, Audience Manager Carzone, said:
“The 2023 Carzone Motoring Report examines industry trends as well as the impacts the cost of living crisis is having on Irish motorists.
Our report indicates that motorists are most concerned about the rising costs of running their vehicles, with fuel being the top concern for 69% of motorist. The effects of the pandemic are still lingering in the industry, with a third of car buyers having to consider another brand or car model due to stock shortages. However, it is encouraging to see that a third of Irish motoris’s plan to purchase an electric or hybrid model as their next car, with 57% of those choosing to purchase because they are cheaper to run.
The results from this report are extremely insightful and reflect the current climate for car buyers and motorists“