New figures show that used cars are costing 40% to buy now compared to this time last year.
Done Deal has released a car price index for Ireland that shows that a second hand car bought last year might be worth more today.
The report also finds that inflation is mostly affecting less expensive cars.
Environmental economist Dr Tom Gillespie says a shortage of new cars and the pandemic is having an effect on car prices.
"There's a supply strain on new cars, which has a knock on effect on used cars - if people can't buy new cars they'll turn to used cars.
"In Ireland's case specifically with Brexit, you're seeing a big reduction in the number of used car imports from the UK.
"On the demand side, because of the pandemic there's more of a reliance on cars, and also people have more money in their pocket at the moment because of pandemic savings."
