At A Glance
October 2025 saw a drop in car registrations vs September 2025, but a surge in EVs. Last month, EVs accounted for 709 of 2,132 car registrations, 34% higher than in October 2024 (The Irish Times).
Even with the surge of EVs, the car market saw a 9.3% drop in new car registrations, which compounded a third monthly fall in a row. Continuing cost-of-living burdens and the lead-up to Christmas could be factors at play, as customers put off large purchases to prepare for the festive period.
Diving Into The Data
An Overall Market Slump
The Irish car market has experienced a decline in demand for three consecutive months, which presents possible explanations. The drop could suggest weaker demand for new cars, with used imports by 19% year-on-year (The Irish Times). The financial outlay of a new car compared to a used option is great, and the risk of depreciation makes the initial new purchase price even more expensive in time. With that in mind, demand for used cars has soared, while new cars have been left behind.
Why EVs Are Fighting The Tide
EV demand growth in every Irish county shows the EV wave is national and set to stay. Government incentives and consumer awareness have contributed to the rise in demand for EVs, and the increase in options has allowed used EVs to flood the market, whilst newer models gradually come down in price. For lenders and dealers, it’s clear that the product mix is shifting: more and more customers are looking for EVs, and an inability to provide this will see you miss out on hundreds, if not thousands, of potential new customers.
Implications For Car Finance Brokers, Lenders and Dealerships
For Finance Brokers And Lenders
- Risk and underwriting implications. EVs carry different pricing and residual value risks around battery life and general reliability over time. For lenders, recalibrating risk models and affordability measures is key to making the most of demand in a controlled and sustainable manner that protects you and the customer.
- Potential re-analysis of finance products to reflect EV demand. This might mean longer terms or higher deposit options to guard against future value loss and battery issues, or the ability to refinance when the car starts to drop off in performance.
For Dealerships
- Stock planning. Ensure you cater to this growing demand by increasing your EV and hybrid fleet. Take a look at finance offers that support EV purchasing and consider adding lenders offering these deals to your panel.
- Marketing shift. Customers are leaning towards EVs, and your marketing should too. Advertise the great EV options you have and the benefits of hybrids, aligning with a growing market sentiment.
Summary
October painted a mixed picture for the Irish car market. Overall new-car registrations continued to fall for the third month running, yet EV demand surged nationwide, now making up a significant share of monthly sales. With used imports rising and cost-of-living pressures weighing on buyers, the shift toward more affordable and future-proof options is clear. For brokers, lenders and dealerships, adapting to this changing product mix — especially the accelerating appetite for EVs — is now essential for capturing growth in a fluctuating market.
LM Operations – A Reputable Partner in Hybrid Car Finance
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