AIB has released its 2026 Motor Outlook, which looks under the bonnet of car purchasers’ intentions and industry trends, as the transition to electric vehicles continues among consumers, businesses and across infrastructure.
The report contains recent market research* which found that for planned and recent car buyers, price (27%) is the biggest barrier to EV purchasing, followed by charging infrastructure (24%), range anxiety (18%), battery lifespan (13%) and resale value (10%).
Amid ongoing volatility in energy costs, fuel prices are the most important factor influencing whether to proceed with or delay a car purchase (41%), followed by special offers (23%), brand (22%), discount (19%) and insurance (19%). Cost of purchase was 5%.
A majority of consumers (55%) continue to purchase vehicles through franchise dealerships, 26% through independent dealerships, 10% from a private seller and 8% through an online website retailer.
While banks are the most likely source of financing at 33%, ahead of cash (30%), garage/dealer (27%) finance and online channels (10%). Of planned or recent buyers, 63% of respondents say ease of finance is at least somewhat important or important when buying a car. 19% say it’s unimportant.
For planned or recent buyers, petrol (27%), fully electric (24%) and petrol/hybrid (23%) are the top three fuel types.
Supporting electric and hybrid vehicle adoption aligns with AIB’s climate ambitions, including its target for 70% of new lending to support green or transition assets by 2030. In recent years, AIB has been building its motor finance portfolio in step with the sector’s evolution. AIB’s involvement spans vehicle distributors, individual dealerships and consumers, and that integrated model extends into fleet and asset finance through AIB Finance and Leasing, as well as our NiftiBusiness fleet leasing joint venture company.
The AIB Motor Outlook Report features a range of voices at the forefront of the Irish motor industry including Nissan Ireland, the Society of the Irish Motor Industry, leading franchise the Gowan Group, AIB’s own sector experts and ESS, a long-established Irish engineering and asset management company which is electrifying its fleet, as a case study.
Nessa Devereux, AIB Head of Transport and Logistics said: “Our research highlights how demand is being influenced by cost considerations, reinforcing the challenges that sit behind the broader sector transition. AIB’s role is to support the transition end to end, combining financing with sector insight, lifecycle support and long-term partnerships.”
Brendan Crowley, Head of AIB Finance and Leasing, acknowledged businesses considering fleet electrification can face higher upfront costs, uneven charging infrastructure and range uncertainty. He outlined AIB’s supports for the sector. “Whether customers come directly to us or through our NiftiBusiness joint venture, our support covers the full vehicle lifecycle — from residual value management and servicing to end-of-life remarketing,” he said. “It is not just about finance; it is about supporting customers through the transition.”
*Data survey was conducted by iReach for AIB in June 2026 among a nationally representative sample of 1,000 adults