The UK car market is undergoing a significant transformation, driven by a growing preference for used cars and a rising interest in electric/hybrid vehicles.
Amid these changes, dealerships continue to dominate as the preferred purchasing channel. Together, main and independent dealers account for 69% of all vehicle sales, with main dealers alone representing nearly half (48%) of purchases.
Customer service quality and the variety of available models are crucial for dealership success. Indeed, almost 6 in 10 (58%) selects good customer service is the most important factor when choosing one physical car dealership over another. In addition, over half (54%) express a good variety of car models encourages them to purchase from one physical car dealership over another.
Consumers are increasingly prioritising transparency in pricing and a broader selection of electric/hybrid options. As such, over 4 in 10 car buyers (44%) car buyers say pricing transparency as their top priority when purchasing a vehicle – a preference consistent across all age groups.
Affordability and accessibility in an uncertain economic environment are significant challenges affecting the market. Indeed, availability of good financing options is cited by over four in ten (41%) buyers as a key factor encouraging them to choose one physical car dealership over another.
This report looks at the following areas:
- Opportunities driven by consumers’ prioritising transparent pricing and a wider range of financing options.
- Major factors influencing buyers to choose one physical car dealership over another including excellent customer service, a diverse selection of car models, and a strong reputation.
- New growth prospects fuelled by shifting consumer priories towards electric and hybrid options during the car buying process.
- Insights into buyer preferences – whether for an entirely in-person experience, a hybrid of online and in-person interactions, or a fully online process – and key recommendations to select the right advertising channels to effectively target car buyers.
Car buyers’ growing demand for good customer service, dealership variety, and transparent pricing, increasingly shapes the car buying journey presenting good prospects.
Utku Tansel, Senior Retail Analyst
Market Definitions
This Report investigates the car buying process and the retailing of cars.
It focuses on both new and used car sales to private individuals, although for the purposes of market context, it also includes car sales to other markets such as business and fleet.
It is exclusively focused on passenger vehicles, and therefore excludes any discussion of the market for light commercial vehicles.
Collapse All
-
Executive Summary
- Opportunities for the car purchasing market
- Strengthen customer service
- Elevating customer experience in UK car showrooms
- Building success through consistency, community, and feedback
- Enhance transparency in pricing
- Building trust through transparency: how clear pricing transforms car buying
- Variety wins: emphasise car options
- Leverage tech to enhance productivity in car sales
- Market dynamics and outlook
- Market size & forecast
- Market outlook for the car sector
- Market forecast – volume
- Used cars dominate with almost 80% of total sales
- Graph 1: volume share new and used car sales, 2018/24
- Electric power surges ahead as petrol and diesel decline
- Graph 2: new car registrations, by share of fuel type, 2018/23/24
- What consumers want and why
- Almost half of buyers will purchase a new car
- Graph 3: intention of purchasing new or used in the next three years, %, 2024
- Graph 4: intention of purchasing new or used in the next three years, %, 2023
- Dealers remain the top choice
- Graph 5: where last car was purchased, 2023/24
- Surging sales: a closer look at automotive dealership spending
- Fewer plan to buy a car in the next 12 months
- Graph 6: timescale for purchasing a car in the next three years, 2023/24
- More than half of adults plan to buy a car in the next three years
- Graph 7: timescale for purchasing a car in the next three years, 2024
- New car purchase intention remains strong
- Graph 8: intention of purchasing new or used in the next three years, 2022, 2023 and 2024
- Petrol is the most popular fuel type, followed by hybrid
- Graph 9: preference for fuel types, 2024
- Top priorities: transparent pricing, more EV/hybrid choices and clearer financing
- Graph 10: expectations when purchasing a car now compared to 12 months ago, “I expect…”, 2024
- Buyers consider various factors when choosing a car dealership
- Graph 11: key factors encouraging buyers to purchase from one physical car dealership over another, 2024
- Most car buyers still choose in-person purchases
- Advertising and marketing
- Advertising spend continues to fall
- Graph 12: automotive marketplace total advertising expenditure, 2020-24
- Motorway highlights helping sellers maximise their car value
- Webuyanycar’s advert emphasises its easy 3-step process
- AutoTrader: trusted by families for generations
-
MARKET DYNAMICS
- Market size
- Car sales shift into high gear
- Graph 13: new and used car sales, by volume, 2019-24
- Used cars dominate: 80% of sales in 2024
- The shift to alternative fuel cars: driving past petrol and diesel
- EV/hybrid boom: record growth, high stakes, and the road ahead
- Market forecast
- Market forecast – volume
- Driving the future
- Market segmentation
- All AFV segments surge ahead: the shift away from fossil fuels
- Graph 14: new car registrations, 2023/24
- Fleet/business fuels new car sales
- Graph 15: new car sales, by private and fleet/business, units, 2019-24
- Fleet weighs in
- Graph 16: new cars market share, by private, fleet and business, %, 2024
- Graph 17: new cars market share, by private, fleet and business, %, 2023
- Petrol and diesel decrease…
- Graph 18: new car registrations, by share of fuel type, 2018/23/24
- …while the weight of electrified powertrains rise
- EVs hit a record market share: a milestone for sustainable cars
- Graph 19: new cars market share, %, 2023
- Graph 20: new cars market share, %, 2024
- Market share
- Luxury rises and EV demand soars: top automotive brands and best-selling cars of 2024
- Volkswagen continues to lead
- Graph 21: brand share among leading 10 brands, new cars, 2023/24
- Top automakers continue to innovate in an evolving market
- Distribution channels
- Dealers remain the top choice
- Graph 22: where last car was purchased, 2023/24
- Online options: auto sales websites preferred over other channels
- Graph 23: where car was last purchased, online options, 2020-24
- Market drivers
- Inflation spike squeezes household budgets
- Graph 24: CPI* inflation rate, 2021-25
- Consumer confidence outlook
- Graph 25: consumers’ financial confidence over the next year or so, 2025
- Fuel prices down, but remain above those seen during the pandemic
- Graph 26: unleaded petrol and diesel pump prices, Jan 2021 – Mar 2025
- Potential impacts of US tariffs on the UK market
-
What Consumers Want and Why
- Car ownership, age of car owned and alternative access to a car
- Unlocking opportunities: nearly 1 in 3 adults do not own a car
- Graph 27: car ownership, %, 2023
- Graph 28: car ownership, %, 2024
- More buyers opt for second-hand
- Graph 29: age of car owned, 2022, 2023, and 2024
- Shifting gears: rising used car sales, financial pressures, and the push for sustainability
- Graph 30: age of car owned, 2024
- Where last car was purchased
- Dealers remain the top choice
- Graph 31: where last car was purchased, 2023/24
- Main dealers dominate with almost half of purchases
- Graph 32: where last car was purchased, 2024
- Unpacking automotive dealership spending trends
- Buyers prioritise more EV choices and transparent pricing from dealers
- Graph 33: where last car was purchased – main dealer (eg a Ford main dealer) by expectations when purchasing a car now compared to 12 months ago, “I expect…”, 2024
- While main dealers win over high-earners and older buyers…
- Graph 34: where last car was purchased – main dealer, select groups, 2024
- …online records higher among the younger cohort
- Online options: auto sales websites preferred over other channels
- Graph 35: where car was last purchased, online options, 2020-24
- Hyundai and Amazon revolutionise car buying with online platform
- Intention to purchase a car in the next three years
- Over half of adults plan to buy a car in the next three years
- Graph 36: timescale for purchasing a car in the next three years, 2024
- Purchasing intent drops in 2024: a three-year outlook
- Graph 37: intention to purchase a car in the next three years, yes, 2022, 2023, and 2024
- Unlocking the next generation of car buyers
- Graph 38: intention to purchase a car in the next three years, definitely/probably, by sex and age, 2024
- Target families with young children on digital and TV
- The black community presents good opportunities for engagement across mediums
- Timescale for purchasing a car in the next three years
- Fewer plan to buy a car in the next 12 months
- Graph 39: timescale for purchasing a car in the next three years, 2023/24
- Intend towards buying in the coming six months weakens in 2024
- Graph 40: timescale for purchasing a car in the next three years, within the next 12 months, 2022/23/24
- Short-term purchasing plans among older adults remain challenging
- Intention of purchasing new or used
- New car purchase intention remains strong
- Graph 41: intention of purchasing new or used in the next three years, 2022/23/24
- Who will be driving the demand for new cars?
- Graph 42: intention of purchasing a new car in the next three years, select groups, 2024
- The used sector favoured by budget-conscious buyers
- Fuel type preferences
- Petrol is the most popular fuel type, followed by hybrid
- Graph 43: preference for fuel types – “How likely are you to consider buying a car with the following fuel types?” – NET, 2024
- Petrol cars still reign supreme in 2024
- Hybrids: the perfect middle ground driving EV adoption forward
- Transparency drives trust in hybrid and electric cars
- Graph 44: attitudes towards hybrid and electric cars – agree, %, 2024
- Driving change: how electric cars are powering a sustainable future
- Renault unveils affordable electric vehicle
- Diesel still resonates with young drivers
- Graph 45: “How likely are you to consider buying a diesel car?” – any likely – NET, by age, 2024
- Key expectations when buying a car
- Top priorities: transparent pricing, more EV/hybrid choices and clearer financing
- Graph 46: expectations when when purchasing a car now compared to 12 months ago, “I expect…”, 2024
- Transparent pricing is vital when buying a car
- Building trust through transparency: winning over today’s car buyers
- Driving the future: how digital product passports revolutionise the auto industry
- Electric & hybrid cars influence buyers’ decisions
- Growing sustainability awareness
- Financing is key
- Graph 47: “Compared to 12 months ago, which of the following would you expect when purchasing a car now? I expect…”, 2024
- Drivers remain wary about using credit and borrowing costs
- Driving convenience: how car buyers want faster, smarter shopping experiences
- What drives buyers to choose one car dealership over another?
- Buyers consider various factors when choosing a car dealership
- Graph 48: key factors encouraging buyers to purchase from one physical car dealership over another, 2024
- Good customer service is the top influencing factor
- How car dealerships can deliver outstanding customer service
- Variety drives dealership success
- Harness positive perceptions from current customers
- Bringing the showroom to you: how pop-ups can revolutionise car buying
- Porsche fuels creativity with London pop-up stores
- Renault’s electrifying pop-up: test drives, French pastries, and the Car of the Year 2024
- Tech-savvy shoppers: how digital tools shape car dealership choices
- Tesla expands self-serve test drives to more locations across the UK
- Preferred ways to buy a car
- Most car buyers still choose in-person purchases
- Graph 49: preference for the car purchasing process, 2024
- Prioritise in person….
- Graph 50: preference for entirely in-person (eg at a dealership) to do the car purchasing process, by overall and 55+ age group, 2024
- …but also adapt to buyers’ multichannel approach
- Mixing online influences with real-life impact: how car retailers can win over Gen Z
- Roboverse retail: revolutionising brand engagement and customer experiences
-
ADVERTISING AND MARKETING TRENDS
- Advertising spend continues to fall
- Graph 51: automotive marketplace total advertising expenditure, 2020-24
- Motorway and Webuyanycar lead 2024 ad spend
- Graph 52: automotive marketplace total advertising expenditure, by car retailer, 2024
- Webuyanycar launches new ad campaign showcasing guaranteed sale feature
- AutoTrader: trusted by families for generations
- Motorway highlights helping sellers maximise their car value
- Webuyanycar’s advert emphasises its easy 3-step process
- Hyundai and Amazon’s new “Add to Cart” advert
- Television drives automotive marketplace ads, but radio holds its own
- Graph 53: automotive marketplace advertising expenditure, by media type, percentage, 2024
-
Appendix
- Market forecast data and methodology
- Market forecast and prediction intervals (volume)
- Forecast methodology
- Top advertisers
- Advertising – by company
- Report scope and definitions
- Market definition
- Data sources
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Nielsen Ad Intel Coverage
- Snoop SpendMapper methodology
Market Intelligence Made Easier With Mintel
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
- Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
- Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
- Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
- Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
- Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
- Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
- Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
- Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
For a closer look at a Mintel Market Intelligence Report, take a look at the sample PDF report below:
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
£ 2,195 (Excl.Tax)
-
Download today with instant access
Pay via credit card or invoice (net 30 payment terms)
-
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
-
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn moreTrusted by global industry leaders
We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.
Marie Stafford, European Director, The Innovation Group, VML
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
Alana Gavin, VP Research and Insights, Jackman
We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.
Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.
Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.
When carrying out background research, I find Mintel an excellent starting point.
The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.
Ben Zeidler, Director - Research and Analytics, Tenth Wave
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn more
