2025 UK Car Buyers: Spending Soars to £20K, but EV Adoption Remains Low at 18%

As electric vehicles edge closer to the mainstream, new buying platforms emerge, and living costs continue to shape big financial decisions, new research reveals how Britain’s drivers are navigating one of life’s most significant purchases.

With the 2025/26 number plates arriving on 1 September, day insurance experts Tempcover carried out a survey of 2,000 UK drivers to uncover the state of car purchasing across the country, from how much drivers are willing to spend and where they are buying, to their top priorities and plans for the future. The research also looks at the second-hand cars most readily available on the market today.

Brits Spent an Average of Nearly £20,000 on Their Most Recent Car

When asked about their most recent car purchase, UK drivers reported spending an average of £19,703. Younger buyers led the way, with 25–34-year-olds spending an average of £24,492, followed closely by 18–24-year-olds at £23,704. In contrast, 55–64-year-olds spent nearly £10,000 less than these younger drivers, averaging £15,449.

44% of respondents bought their most recent car brand new, while over half (55%) went for a second-hand vehicle. Even with online marketplaces becoming more visible, nearly half of respondents (49%) bought their car from a main dealership, 29% from independent dealers, 7% online, and 5% from a private seller.

When it comes to payment, despite rising living costs, 59% of drivers paid in full using cash or a debit card, while 11% used a personal contract purchase (PCP) and 8% relied on a personal loan.

UK Car Buyers Prioritise Price Over Safety and Environment

When asked about their top priorities when buying their most recent vehicle, price came out on top, with 52% citing it as their main concern. Reliability followed at 41%, highlighting that many Brits want to avoid costly repairs down the line. Completing the top five were practicality (33%), fuel efficiency (31%) and mileage (23%). For those who bought a second-hand car, the average mileage was just over 31,000, reinforcing that drivers are looking for vehicles built to last.

Claire Wills-Mckissick, day insurance expert at Tempcover, says:
“Despite cost-of-living pressures, cars remain a priority for many drivers. While price matters, most are looking for reliability and long-term value, even if it means paying a little more.”

At the other end of the scale, far fewer drivers considered environmental impact or EV technology a priority (7%), with tech features (10%) and safety features (15%) also ranking low, despite many new cars being designed around these aspects.

Drivers Still Reluctant to Make the EV Switch

While the Government grant of up to £3,750 has encouraged nearly half of motorists (48%) to consider an EV for a test drive[1], 18% of drivers say they plan to go fully electric when buying their next vehicle. Petrol remains the most popular choice at 37%, followed by hybrids at 21%, showing that while interest in greener options is growing, most drivers are still sticking with traditional fuel types for now.

Claire adds: “This doesn’t mean drivers aren’t interested in going electric. Many are open to test driving but may be held back by upfront costs, charging infrastructure, and uncertainty around running costs, showing that practical concerns often outweigh the appeal of new technology.”

The Best-Stocked Used Cars for UK Buyers

With drivers spending just under £20,000 on average and 71% opting for cars with fewer than 50,000 miles, the research also examines which used models are most widely available within this typical price and mileage range.

Top Cars Available Between £15,000 and £20,000

*Autotrader as of 23/07/25

The Best-Stocked Used Cars for UK Buyers

With drivers spending just under £20,000 on average and 71% opting for cars with fewer than 50,000 miles, the research also examines which used models are most widely available within this typical price and mileage range.

Claire Wills-Mckissick, adds: 

“Buying a car is one of the biggest financial decisions many of us make, and our research shows drivers are carefully weighing cost, reliability, and practicality before committing. With options ranging from new and used to petrol, hybrid, and electric, it’s clear buyers want to make the right choice.

“Temporary car insurance offers a simple, affordable, and flexible way to test drive a vehicle before buying, providing crucial peace of mind. For private sales in particular, this type of insurance is essential. Unlike dealerships, which often provide cover, a private seller’s policy usually won’t, and getting added as a named driver can be complicated and risk their No Claims Bonus. 

By taking out a temporary policy, which can last from as little as one hour, you can drive a car with comprehensive cover, giving you the confidence to make a larger investment safely.”

For more information on the state of UK car buying in 2025 and top tips for buying a car, visit: https://www.tempcover.com/front-cover/car-buyers-report 

Sources

This online survey of 2,000 UK drivers who own a car which they bought themselves was commissioned by RVU on behalf of Tempcover and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected between 15 and 21 July 2025. All participants are double-opted in to take part in research and are paid an amount depending on the length and complexity of the survey. This survey was overseen and edited by the OnePoll research team. OnePoll are MRS Company Partners, corporate membership of ESOMAR and Members of the British Polling Council. Unless otherwise specified, all insights are drawn directly from this survey’s results.
[1]Research conducted by Mortar Research amongst 2,002 UK adults, all with a driving licence and access to a car, from 12th- 14th August 2025.