The Irish car market is evolving rapidly in 2025, driven by shifting consumer priorities and broader industry trends. For car finance brokers and dealerships, understanding these changes is crucial to meet customer expectations and stay competitive.
Sustainability Influences Decisions
Digital Experience Is Essential
Demand For Transparent And Flexible Financing
Trust And Personalisation Drive Loyalty
1. Affordability Comes First
Irish consumers are increasingly budget-conscious. With the ongoing cost-of-living crisis, household budgets have never been tighter. The average spend on new car purchases stands at €16,550, with younger buyers (aged 17–24) spending around €9,840. High upfront costs, especially for electric vehicles (EVs), deter many potential buyers, with 40% citing cost as a primary barrier. The Irish Times
Action for Brokers:
- Offer flexible financing options tailored to different budgets.
- Offer both prime and non-prime financing options to target different demographics.
- Provide transparent information on the total cost of ownership, including maintenance and fuel savings.
- Highlight available government incentives or grants for EV purchases.YouTube+4Pinterest+4Pirelli+4
2. Sustainability Influences Decisions
Environmental concerns are increasingly influencing purchasing decisions. While EV adoption faces challenges, there’s a growing interest in sustainable transportation options. In 2024, 17 out of 40 Irish Car of the Year contenders were electric vehicles, reflecting this shift. Vendor Finance+1mmai.ie+1
Action for Brokers:
- Educate customers on the environmental benefits and long-term savings of EVs.
- Stay informed about the latest sustainable vehicle models and technologies.
- Collaborate with manufacturers to offer test drives and informational sessions on EVs.
3. Digital Experience is Essential
The car-buying journey has become increasingly digital. Consumers start their research online, comparing models, prices, and financing options. However, many still value in-person interactions for final decisions. A study found that 64% of EV buyers prefer to make a purchase at a dealership rather than online. Home | EY Spain+1ithinkfi.org+1
Action for Brokers:
- Develop a robust online presence with detailed information on vehicles and financing.
- Implement virtual consultations and online application processes.
- Ensure a seamless transition from online research to in-person experiences.
4. Demand for Transparent and Flexible Financing
Consumers seek clarity and flexibility in financing options. They want straightforward information on interest rates, repayment terms, and additional fees. Flexibility in payment schedules and options to adjust terms are also valued.
Action for Brokers:
- Provide clear, jargon-free explanations of financing terms.
- Offer customisable financing plans to suit individual needs.
- Utilise digital tools to allow customers to simulate different financing scenarios.
5. Trust and Personalisation Drive Loyalty
Building trust through personalised service is key to customer retention. Buyers appreciate when brokers understand their unique needs and offer tailored solutions. Establishing long-term relationships can lead to repeat business and referrals.
Action for Brokers:
- Invest in customer relationship management tools to track preferences and history.
- Train staff to provide personalised recommendations based on customer profiles.
- Follow up post-purchase to ensure satisfaction and address any concerns.
In 2025, Irish car buyers prioritise affordability, sustainability, a seamless digital experience, transparent financing, and personalised service. Car finance brokers and dealerships that align with these preferences are more likely to succeed in a competitive market.
What Irish Car Buyers Want from Their Cars in 2025
Beyond financing and the buying process, Irish consumers in 2025 are clear about what they expect from the cars they drive. A mix of practicality, environmental awareness, and evolving lifestyle needs shapes their priorities:
- Reliability and Low Running Costs
Irish buyers want reliable vehicles without high repair or maintenance expenses. Fuel efficiency, low servicing costs, and affordable insurance remain key considerations across all age groups. - Practicality for Everyday Life
Whether it’s city commuting, family travel, or outdoor adventures, practical features like good boot space, adaptable interiors, and easy parking are highly valued. Compact SUVs and hatchbacks remain popular, balancing size and functionality. - Technology and Safety Features
Modern car buyers expect advanced technology as standard. Features like parking sensors, adaptive cruise control, built-in sat-nav, and smartphone connectivity (Apple CarPlay/Android Auto) are no longer seen as luxury add-ons, but essential. Safety remains critical, with a strong preference for cars that score well in crash tests and offer features like lane assist and emergency braking. - Environmental Responsibility Without Compromise
While more buyers are considering EVs and hybrids, they want eco-friendly options that don’t sacrifice range, performance, or practicality. The major deciding factors are long battery life, fast charging, and real-world reliability. - Strong Resale Value
With financial pressures growing, many Irish consumers are thinking ahead. Cars that retain good resale value, especially models from trusted brands, are highly attractive to buyers planning future upgrades.
Understanding what Irish car buyers want from their vehicles is just as important as offering the right financing. In 2025, consumers prioritise reliability, low running costs, everyday practicality, modern technology, and strong resale value when choosing a car. They are also increasingly mindful of environmental impact but expect eco-friendly options to deliver on performance and convenience. For brokers and dealerships, focusing on vehicles that meet these expectations — and communicating their benefits — can be a key differentiator in an increasingly competitive market.
Partner with LM Operations
At LM Operations, we understand the evolving needs of Irish car buyers. Our tailored lending services and commitment to innovation can help you meet these demands effectively. Join us in shaping the future of car finance in Ireland.