2026
9
UK Car Purchasing Consumer Report 2026
2026-03-30T16:12:20+00:00
REP5F5413B5_98C1_4DC5_9413_B598C1ADC5DD
2195
192289
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Report
en_GB
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

The car market is undergoing a significant transformation due to fluctuating economic conditions and evolving consumer preferences.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the car sector
    • Opportunities
    • Winning with radical transparency
    • EV education advantage
    • Hybridised car-buying journeys
  2. 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
  3. 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
  4. 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
  5. 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
Download Report Summary

"Consumer habits are shifting due to service, diverse options, trusted dealerships, transparent pricing, and hybrid buying experiences, creating new market opportunities"

Utku Tansel, Senior Retail Analyst

Utku Tansel, Senior Retail Analyst

UK Car Industry – Purchasing Trends and Insights

  • 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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