Car buyers cut average purchase price by £2,000
New research has revealed that car buyers are spending an average of £2,000 less on a new purchase than last year.
Temporary car insurance provider Tempcover surveyed 2,000 motorists as part of its Car Buyers Report and found that the average car purchase spend has fallen from £19,703 in 2025 to £17,555 this year.
Figures fell across almost all age groups, with the exception of 55 to 64-year-olds, who saw average purchase prices increase 7.5% from £15,449 to £16,603.
Cost of living pressures were cited as the main reason for spending less by 44% of respondents, with 17% pointing to higher insurance and 16% saying higher finance or interest rates.
Meanwhile, 52% of motorists said price was the most important factor in choosing a new car, followed by reliability (43%), and practicality (37%).
Claire Wills-McKissick, car expert at Tempcover, said: “The data reflects a car buying market where value is doing more of the work than it was a year ago. Falling average spends and a shift toward approved used models suggest drivers are being more selective, aiming to get more for their money without compromising on quality.
“Approved used vehicles can offer a middle ground for buyers, the reassurance of a certified used vehicle without the price premium of new, and that proposition is clearly resonating,”
