CAR LOANS IN Ireland hit a new peak in the first three months of this year, new figures show, reaching their highest level since specific record-keeping and analysis of the data began five years ago.

The Banking and Payments Federation Ireland (BPFI) has released data showing that from January to March, 19,552 car loans were taken out, collectively valued at a total of €259m.

The average car or auto finance loan was €13,267, an increase of €366 compared with last year.

Personal loan activity also grew across other types of loans, including green and home improvement loans and loans for education, holidays or special occasions.

Overall, a total of 60,770 personal loans were drawn down in the first quarter of the year, valued at €683m.

It marks a year-on-year in increase of 22.1% in volume and 24.1% in value.

BPFI’s Personal Loans Report Q1 2025 published today shows car loan volumes and values reached their highest levels on record, with 19,552 loans valued at €259 million. Read the report on https://t.co/IOoeJoDxHV pic.twitter.com/sjVnJEsH8e

— Banking & Payments Federation Ireland (@BPFINews) August 15, 2025

The average personal loan value rose by €177 to €11,239 compared with the same period last year.

The number of car loans rose by 21.5% to 19,552, while the value of these loans increased by 25% year on year to €259m.

There were 15,372 home improvement loans, an increase of 18.2%, and they were valued at €198m, a 19.2% jump.

The average home improvement loan increased by €116 to €12,886.

The category of “other loans” includes loans for reasons like education, holidays and special occasions such as weddings.

A total of 25,846 “other loans” were drawn down valued at €226m, up 25% in volume and 27.5% year-on-year.

The average loan value for other loans increased by €170 to €8,725.

BPFI Head of Sector Research & Analysis Anthony O’Brien said that the latest figures “reveal continued strong demand for personal loans”.

“When viewed on an annualised basis, we see there were 240,423 personal loans drawn down in the four quarters ending Q1 2025, valued at almost €2.6bn. This was more than double the value in the twelve months ending Q1 2021,” he said.

O’Brien said the report shows the highest car loan volumes and values since the data series began in 2020.

“The continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases,” he said.

“While increases were seen across all categories, green personal loans, which comprise of green car and green home improvement loans, had the highest relative jump in value of 29.3% year on year to €35.1m in Q1 2025 and in volume by 26.6% to 1,531.

“These are the highest activity levels since the green loan data series began in 2022.”