The car market is undergoing a significant transformation due to fluctuating economic conditions and evolving consumer preferences. The automotive industry faces a dual challenge: adapting to consumer demand for transparency…
UK
Automotive
simple
UK Car Purchasing Consumer Report 2026
"Consumer habits are shifting due to service, diverse options, trusted dealerships, transparent pricing, and hybrid buying experiences, creating new market opportunities"
The UK car market is undergoing a significant transformation due to fluctuating economic conditions and evolving consumer preferences. The automotive industry faces a dual challenge: adapting to consumer demand for transparency and convenience, while navigating new regulatory landscapes.
Customer service remains the most important factor, influencing 59% of buyers to choose one physical car dealership over another, rising to 72% among those aged 55+.
Dealerships remain pivotal, with 69% of purchases occurring through main and independent dealers. Yet, consumers increasingly expect seamless integration of online and in-person experiences, urging retailers to adopt an omnichannel strategy as a necessity.
47% prioritise pricing transparency when purchasing a vehicle. Additionally, 37% of buyers demand greater clarity in car financing, elevating transparency to the 3rd most critical expectation.
Electric cars have gained momentum, achieving a record market share, as consumers seek cost-effective and sustainable alternatives. 40% of respondents expect a wider selection of electric/hybrid car options when purchasing a car. The rise of EVs presents both a major opportunity and a challenge for brands, as they must educate and engage consumers in this rapidly expanding segment.
This Report Looks at the Following Areas:
Popular car purchasing channels include traditional dealerships and emerging digital-first platforms, reflecting evolving consumer buying habits
Opportunities driven by consumers’ expectations for transparent pricing and financing, a broader selection of electric and hybrid options, and expanded financing options from car dealerships
Major factors influencing buyers to choose one physical car dealership over another include excellent customer service, a diverse range of car models, a strong dealership reputation, and knowledgeable sales staff.
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 strategic recommendations to select the most effective advertising channels to engage car buyers
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.
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EXECUTIVE SUMMARY
What you need to know
Outlook for the car sector
Opportunities
Winning with radical transparency
EV education advantage
Hybridised car-buying journeys
THE MARKET
Snapshot – market size and forecast
Inflation still strains household budgets
Graph 1: CPI inflation rate, 2021-26
Consumer confidence outlook
Graph 2: consumers’ financial confidence over the next year or so, 2026
Navigating fuel price volatility
Graph 3: unleaded petrol and diesel pump prices, 2018-26
The UK’s EV revolution: new rules, taxes and timelines
Market size and forecast of the UK Car Market
Graph 4: [no title]
Car sales hit three-year growth streak in 2025
Graph 5: new and used car sales, by volume, 2020-25
Used cars continue to dominate
Graph 6: new and used car sales, share of volumes, 2018/25
EV market share hits record as petrol and diesel demand weakens
Graph 7: new car market share, 2025
Volkswagen pulls ahead of the pack
Graph 8: brand share, new cars, leading 10 brands, 2024/25
Dealers still dominate: unpacking car buying trends
Graph 9: where last car was purchased, top three channels, 2025
Graph 10: where last car was purchased, online channels, 2024/25
THE CONSUMER
Where last car was purchased
Main dealerships dominate
Dealers are still the go-to choice for car buyers
Graph 11: where last car was purchased, 2024-25
Driving growth: car dealership spending soars
Main dealerships remain the most popular channel
Graph 12: where last car was purchased – main dealers, by age, 2025
Beyond the showroom: transforming car dealerships into community hubs
Virtual Showroom Experience Suite
Revolutionising online car sales: turning transactions into memorable experiences
Graph 13: where car was last purchased, online options, 2021-25
Key expectations when buying a car
Key considerations: transparent pricing, more EV/hybrid options, and clearer financing
Transparency and wider EV/hybrid choices drive sales
Graph 14: expectations when when purchasing a car now compared to 12 months ago, “I expect…”, 2024-25
Transparent pricing wins customers
Dealerships lead the way in car financing
Transparency in financing is a key consideration
Finance Clarity Consultation Lounge
Navigating the electric car boom
Drive growth by mastering the ‘Seamless Spending’ trend in car buying
What drives buyers to choose one car dealership over another?
Choosing a dealership: service, variety, and reputation rule the lot
How to pick the perfect dealership: service, selection and trust matter
Graph 15: key factors encouraging buyers to purchase from one physical car dealership over another, 2024-25
Good customer service continues to reign supreme
Graph 16: key factors encouraging buyers to purchase from one physical car dealership over another – Good customer service, by age, 2025
Trust and expertise: why reputation and knowledge drive car sales
Cutting through the noise: how dealerships can turn choice overload into a competitive edge
Preferred ways to buy a car
Car buyers still value the in-person experience in a multichannel world
Car buyers still choose the showroom floor, while the multichannel closes in
Graph 17: preference for the car purchasing process, 2024-25
Multichannel approach gains traction
PRODUCT, INNOVATION AND MARKETING
Effortless selling: Motorway’s magical approach to car sales
Motorway’s clever ITV ads make cars vanish, spotlighting easy selling
WeBuyAnyCar celebrates its 20-year journey with a new campaign
Targeting diverse customer needs: WeBuyAnyCar’s strategic messaging
Emotional branding: AutoTrader’s ‘Find Your Happy Place’ campaign
AutoTrader: where cars meet life’s happy moments
Cazoo’s animated ad uses storytelling and playful characters to showcase its intuitive car-finding process
Driving emotion: how Audi used brainwaves to measure emotional compatibility in Vietnam
APPENDIX
Market definition
Data sources
The market
Forecast methodology
Forecast methodology – fan chart
Market forecast and prediction intervals (volume)
The consumer
Consumer research questions
Consumer research methodology – EMEA
Other data source methodologies
Mintel Spark
Snoop SpendMapper methodology
Abbreviations and terms
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