UK Car Purchasing Market Report 2025
Market Intelligence Reports - What's Included
- Interactive Databook
- Multiple Report Formats
- Access to Clients Portal
- Custom Presentation Tool
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
Why Choose Mintel?
Mintel is the world’s leading market intelligence agency. We show you how consumers think today and tomorrow. As a trusted partner to industry leaders, we deliver game-changing insights to businesses across the globe, fuelling their marketing and innovation strategies that will shape the future.
Access high-quality market research with every purchase of Mintel’s consumer reports. Here’s what else is included in your report purchase:
- Multiple Report Formats: Mintel’s reports are available in PDF and PPT formats, and are delivered straight to your inbox, so you can easily share Mintel’s market intelligence.
- Access to Mintel’s Clients Portal: After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal, providing instant access to supplementary insights from Mintel’s industry experts.
- Interactive Databook: Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.
- Custom Presentation Tool: Easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.
Below is a generic PDF sample report. Understand what you are buying.
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
£ 2,195 (Excl.Tax)
- Instant access when you pay by credit card
- Add multiple reports to your cart to receive a discount
Is this report right for you?
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out morePopular Related Reports
UK Electric and Hybrid Cars Market Report 2024
£ 1,495
The UK electric and hybrid car market is undergoing significant transformation, driven by technological innovations and surging sales, particularly of Battery Electric Vehicles (BEVs). Despite this growth, the...
Find out moreUK Car Aftermarket Market Report 2024
£ 2,195
The car aftermarket in the UK is a constantly evolving landscape, shaped by shifting consumer priorities and advancements in technology. The cost of living crisis has significantly influenced...
Find out moreUK In Car Technology Market Report 2024
£ 1,495
Safety features and cost concerns dominate consumer preferences, with a focus on value and reliability in new vehicle technologies. Manufacturers should expedite the development and integration of automated diagnostic...
Find out moreUK Car Industry Review 2025
£ 2,195 – £ 4,495
The UK car market is undergoing significant shifts, shaped by evolving consumer preferences and broader economic challenges. Inflation/supply chain disruptions have influenced buying behaviour, driving increased demand for...
Find out moreUK Vehicle Assistance and Recovery Market Report 2025
£ 2,195
The UK vehicle assistance and recovery market is estimated to reach just under £2.2 billion in 2025, showing resilience with a 5% growth rate despite broader economic pressures....
Find out moreUK Motor Insurance Market Report 2025
£ 2,195
While average premiums remained higher in 2024 than a year before, they steadily declined throughout the year.. This trend is likely to continue into 2025, driven by easing...
Find out moreTrusted by global industry leaders
Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.
Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.
Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Abby Carvosso, Group Managing Director, Bauer Media Group
When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.
They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.
So overall, it’s the level of detail and the quality of forecasting that really stand out for me.
Rebecca Green, Market Insight Manager, Wincanton
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
Is this report right for you?
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out more
