The good news for owners is that used car prices are holding up well and there are some initial indications that some of the SSIA cash will be spent on used cars this year. Michael McAleer, Motoring editor, reports.
Overall, the GE Money used car index shows a general increase in year-on-year values in most sectors.
Already this year's values are up on the same period last year, increasing by an average of almost 2 per cent for three-year-old cars and by just over 1 per cent for five-year-old models.
The single biggest increase has been in the large family sector, with models such as the VW Passat and Ford Mondeo. Prices are up €1,000 over three and five years, and while most of this increase is fuelled by a wave of new models that came to the market in that period, some of it is down to people simply wanting to trade up.
Another big rise has been in small cars, with demand consistently exceeding supply through the second half of last year and prices rising by 5 to 7 per cent for three to five-year-old models.
At the top end, executive and luxury models which used to plummet in value over their initial five years have been clawing their way back and are still worth over 80 per cent more than a Compact Exec after five years. The Executive sector saw a strong increase in residual values, with values between 2 per cent and 9 per cent higher over three and five years on last year. Newer models coming back on to the forecourt account for most of this increase.
In the family sector, prices for VW Golf and Ford Focus remain static for three-year-olds but up slightly in the five-year-old category.
According to Eoin Lynam, marketing director of GE Money, there is one noticeable new trend emerging in the market as buyers move up to higher segments in the used market.
"Previously such moves were more common in the new car market, but this trend is now evident in used car sales as well. The cost differential between segments isn't as great as it once was," says Lynam.
"If you were to buy a three-year-old supermini and keep it for two years, it would devalue by about €3,100 over that time, whereas the bigger medium family saloon would only lose an extra €800 over the two years.
"It's a similar story with the compact executive market. The move up from family car to compact executive models for three year-old models averages out at an extra €2,100. One big factor in people moving into larger engines and compact executive versions has been a noticeable drop in insurance costs for 1.6-litre to 2-litre versions."
If you are not moving up in size or status, then the most pertinent purchase when buying new and thinking about the day you sell will be the options chosen.
While some items, like alloy wheels, fall into the category of aesthetic purchases for which only a handful of potential used buyers may pay extra for, items such as CD player and air conditioning, are well worth the extra cost outlay at the start.
The latest fad that seems to pay off in family cars - particularly people carriers and SUVs - is a DVD player for rear seat passengers. The factory fitted versions can be quite expensive but hold their value well, while the retro fit versions that simply hang from the front seat headrests are proving increasingly popular for those on the school run or families used to spending time on the road.
Another popular accessory on used SUVs and people carriers is a parking sensor system. With most SUVs and people carriers spending as much time in town traffic as they do on the open road, such systems can be a godsend when negotiating tight car parks.
Some car firms are now offering an option of two extra seats in some models. Ford is doing this with its new S-Max and Peugeot has offered it on the 307SW for some time now. These seats fold flat into the boot floor, thereby offering no hindrance to the car's load lugging ability. One quirk of the urban-rural divide seems to be that the extra seats are proving attractive to urban dwellers, though less so in rural areas.
It's taken a decade or so to shake off the image of the travelling sales rep but estates have now gained cachet on the Irish market.
Estate versions have always proved popular with European and British counterparts but it's only in recent times that their flexibility has become appreciated by the family motorist with children and the detritus that comes with them.
With less boxy versions on sale, the likes of the BMW Touring, Audi Avant, Volvo V50 and others are proving increasingly popular. A diesel version would seem an ideal way to preserve your value.
Segment examples: Mini/city cars: Daihatsu Cuore, Ford Ka, Hyundai Amica etc Super Mini: Peugeot 206, Toyota Yaris, Ford Fiesta, Skoda Fabia etc Small/medium family: Volkswagen Golf, Ford Focus, Toyota Corolla, etc Large family: VW Passat, Ford Mondeo etc Compact executive: Mercedes C-Class, BMW 3-Series, Lexus IS200 etc Luxury: Mercedes S-Class, BMW 7-Series, Lexus LS etc...