Price Increases Entry Level Models: What Irish Car Buyers Need to Know

If you’ve been shopping around lately, you’ve probably noticed it already. Price increases for entry-level models are becoming harder to ignore, especially across the Irish new-car market.

Cars that once sat comfortably under a certain budget have crept up year after year. For Dublin drivers, that shift is changing how people think about new vs used, finance options, and long-term value.

At Gerry Caffrey Motors, we see this conversation every day.

Why Are Entry-Level Car Prices Rising in Ireland?

Several factors are driving these increases, and most of them are outside manufacturers’ control. New European standards coming into force in 2026 for safety, pedestrian protection, and pollutant emissions are expected to add up to €2,000 to the price of new vehicles across all segments.

Global supply pressures and inflation have played a major role. Supply chain disruptions and shortages of semiconductors and parts have significantly influenced car price increases. Price increases can vary depending on the model, features, and regulatory requirements. These trends are expected to continue as manufacturers adapt to new regulations and market conditions. Entry-level models across several major consumer categories are experiencing significant price increases due to rising material costs, supply chain bottlenecks, and the integration of new technology. In 2026, entry-level models are experiencing significant price increases primarily driven by a global memory chip shortage and shifting trade policies. Tariffs on imported cars and auto parts have raised costs for automakers, contributing to higher prices. Inflation and rising production costs are driving up car prices. Entry-level vehicles may see price increases of up to €2,000 due to new safety and emission regulations becoming mandatory by late 2026. In 2026, the prices of entry-level models are rising due to stringent new regulatory standards, increased raw material costs for essential tech components, and a shift in manufacturer strategies toward higher-margin vehicles.

Emissions Rules and VRT Changes

Ireland’s VRT system now places more weight on CO₂ emissions. Even small petrol cars are affected, pushing up on-the-road prices.

New European standards coming into force in 2026 for safety, pedestrian protection, and pollutant emissions are expected to add up to €2,000 to the price of new vehicles across all segments. Entry-level vehicles may see price increases of up to €2,000 due to new safety and emission regulations becoming mandatory by late 2026.

According to Revenue, emissions-based taxation continues to tighten as Ireland works toward climate targets.

More Standard Tech, Fewer “Basic” Cars

What used to be optional extras are now standard:

Lane assist and collision alerts
Touchscreens and smartphone connectivity
Advanced safety systems

Entry-level models are now offering more advanced technology as standard, which is contributing to higher prices. Entry-level models across several major consumer categories are experiencing significant price increases due to the integration of new technology, rising material costs, and supply chain bottlenecks.

That’s good for safety on Irish roads, but it means true “budget” cars are disappearing.

Global Supply Pressures and Inflation

Manufacturing costs, transport, and parts shortages haven’t fully settled. Supply chain disruptions and shortages of semiconductors and parts have significantly influenced car price increases. These factors have helped drive up car prices, especially for entry level models. Inflation and rising production costs are also driving up car prices, causing a ripple effect on entry level price points. Even compact models like the Suzuki Swift haven’t been immune.

Suzuki has acknowledged global cost pressures across its range, reflecting wider challenges faced by companies like Ford, Hyundai, Kia, and Nissan. Many automakers have had to adjust their pricing and vehicle lineup to cope with these realities.

Global Trends Impacting Entry-Level Pricing

Price increases for entry-level models are not unique to Ireland. In America, for example, the average transaction price of a new vehicle reached a record $50,080 in September 2025. In 2024, US buyers had a choice of three cars priced under $20,000, but now there are none. The Nissan Versa was discontinued in December 2024, marking the end of the last car model priced under $20,000 in the US. This lack of affordable options has had a significant impact on Americans, especially those in lower-income households, making it increasingly difficult to purchase or maintain a new vehicle. The least expensive new car available in 2026 is the Hyundai Venue, with prices that start at $20,550. There has been a notable drop in the number of affordable car models available to US buyers. Affordable cars like the Nissan Versa are more likely to be cut from automakers' lineups due to low sales volumes and profitability concerns. This trend reflects a global shift where fewer affordable new cars are available, pushing prices higher and limiting choices for budget-conscious car buyers.

How This Affects Popular Suzuki Entry-Level Models

Suzuki remains one of the best-value brands in Ireland, but pricing has evolved. Suzuki is offering a strong range of entry-level models with practical features and efficient hybrid options, giving buyers more choice even as price increases affect the market.

Suzuki Swift: Still Compact, Just Not Cheap

The Swift is still one of the most economical cars to run in Dublin traffic. Its engine delivers impressive power for its class, providing a lively and enjoyable driving experience whether in the city or on the open road. But compared to five years ago, new prices are higher due to tech, emissions compliance, and inflation.

In our experience, buyers now compare a nearly-new Swift against a brand-new one more closely than ever.

Vitara and S-Cross: Entry-Level SUVs with Added Value

The Suzuki Vitara and S-Cross have crept into what used to be “mid-range” pricing. However, they offer:

Strong resale value
Comfortable and spacious seats, with flexible seating arrangements ideal for families and daily commuting
Higher seating for wet, narrow roads
Mild-hybrid efficiency for Irish driving

For many South Dublin families, they still make sense long-term.

New vs Used: A Smarter Way Around Price Increases

This is where many buyers are adapting. With price increases on entry level models, there has been a return to considering used or nearly-new cars as a practical and cost-effective option for buyers.

Nearly-New Cars Are in High Demand

We often see customers surprised by how close used prices are to new ones. That’s because demand for quality used cars has surged, making it easier than ever to sell nearly-new and used vehicles at strong prices in today’s market.

The upside? A premium, low-mileage Suzuki can offer serious savings without sacrificing reliability or warranty peace of mind.

Finance Makes Entry-Level Cars More Accessible

With prices rising, flexible finance matters more than ever.

PCP and HP options help spread the cost while keeping monthly repayments predictable — something that’s crucial with Irish fuel and insurance costs already high.

Consumer Behavior: How Irish Buyers Are Responding

As car prices rise, many consumers are changing how they approach owning a vehicle. With buyers keeping an eye on prices and market trends, the lack of affordable new car options is pushing many towards quality used or nearly-new models, or encouraging them to keep their current cars longer.

This shift is reflected in sales data showing a surge in demand for entry-level trims and used vehicles alike. For example, Ford reported a 26.4% increase in sales of entry-level trims in late 2025 in markets similar to Ireland’s, highlighting a growing preference for affordability over extras.

Impact on Consumers and the Future of Affordable Cars

As car prices rise, many consumers are finding it harder to afford new vehicles, especially entry level models that once provided affordable transportation options. Affordability now varies depending on income level and market segment, with some buyers able to absorb price increases more easily than others. Economic conditions have led to a K-shaped recovery in car sales, affecting affordability across different income groups. Market exclusion has become a barrier to new car ownership, creating a K-shaped divide where median-income households are increasingly pushed out of the new vehicle market. Households making less than $75,000 annually accounted for 26% of new car sales in 2025, down from 37% in 2019, while wealthier buyers—those making more than $150,000—represented over 40% of new car sales in 2025, compared to about 29% in 2019. The average transaction price of a new vehicle in the US reached $50,080 in September 2025, making many vehicles unaffordable for average consumers. This trend is expected to continue, with future affordability and market access likely to remain challenging for many buyers.

The lack of truly affordable cars in the market has led to changes in buying habits, with more people turning to used vehicles or considering different car models that balance cost and features.

However, innovation among automakers continues, with companies like Tesla and Hyundai introducing new models that aim to combine affordability with advanced technology and lower emissions.

What This Means for Irish Car Buyers

For the first time, many Irish buyers face a market where average prices for new cars, including entry-level models, are significantly higher than in previous years.

Figures show that registrations of new vehicles have been affected by these price increases, influencing the overall car market dynamics.

At Gerry Caffrey Motors, we understand these challenges and strive to provide options that meet the needs of Irish drivers, balancing price, quality, and innovation.

Thinking about upgrading to a Suzuki?

Visit Gerry Caffrey Motors in Terenure, Dublin 6W, and talk to our team about new, used, and nearly-new Suzuki options that still make sense in today’s market.