The UK new car market has changed considerably in recent years. Supply shortages and lengthy waiting lists dominated the market following the pandemic, but vehicle availability has improved and new car registrations are growing again.
The pressures facing buyers have changed too. Affordability, running costs, rapidly developing electric vehicle technology and the choice between buying new or used are now playing a greater role in purchasing decisions.
For motorists thinking about changing their car, understanding these changes can help when deciding what to buy — and when to make the move.
Our car valuation guidance also explains more about the factors that can affect vehicle prices and demand.
The New Car Market Is Growing Again
The supply problems that shaped the new car market earlier in the decade have eased considerably. Manufacturers now have greater availability across many models, while overall demand has recovered.
According to the Society of Motor Manufacturers and Traders (SMMT), the UK new car market recorded its ninth consecutive month of growth in August 2026, with registrations increasing by 13.7% compared with August 2025.
That means buyers generally have more choice than during the worst of the supply shortages, although availability, discounts and delivery times still vary between manufacturers and models.
Affordability Is Changing What Buyers Choose
Even as vehicle availability improves, affordability remains an important consideration for many buyers.
The purchase price is only part of the calculation. Motorists increasingly need to consider finance costs, insurance, fuel or charging costs, depreciation, servicing and taxation when comparing different vehicles.
That can lead buyers to:
- Keep their existing car for longer.
- Choose a less expensive model or specification.
- Compare new and nearly-new vehicles.
- Consider a used car instead of buying new.
- Look more closely at the likely running costs and future value of their next vehicle.
For many motorists, the question is no longer simply whether they can afford to buy a particular car, but whether it represents good value over the period they expect to own it.
The Shift Towards Used Cars
Used and nearly-new cars remain an important alternative for motorists who do not want — or need — to pay the price of a brand-new vehicle.
Buying used can provide a wider choice within a fixed budget and avoids the initial depreciation experienced by many new cars. Buyers may also be able to afford a higher specification or larger vehicle than they could when buying new.
However, age, mileage, condition and service history all influence what represents good value, so comparing the overall condition and history of individual vehicles remains important.
Service history can be particularly important when comparing used cars. Our guide to what counts as proof of a car’s service history explains the records buyers can look for before purchasing.
Electric Cars Are Changing the Buying Decision
Electric cars now account for a much larger proportion of the UK new car market. For example, battery electric vehicles represented 29.8% of new car registrations in August 2026, according to SMMT figures.
Price remains an important consideration, but buyers now have a much wider choice of electric models and the Government’s Electric Car Grant can reduce the purchase price of eligible new EVs. Depending on the vehicle, eligible models can currently receive a discount of up to £3,750.
Choosing between petrol, hybrid and electric therefore involves more than comparing the initial purchase price. Mileage, access to charging, running costs, depreciation and how long you intend to keep the vehicle can all influence which option makes most sense.
If you’re considering the second-hand market instead, our guide asks is it worth buying a used electric vehicle?
What Does This Mean for Vehicle Owners?
Changes in the new and used car markets can affect existing owners as well as people actively shopping for their next vehicle.
New-car availability, manufacturer incentives, demand for particular fuel types and changing buyer preferences can all influence used-car values.
If you’re considering changing your vehicle, understanding what your current car is worth gives you a useful starting point before deciding whether to keep it, sell it or replace it.
Check Your Car’s Current Value
Market conditions can change quickly, making it worthwhile to understand what your vehicle may be worth today.
Get a free valuation with our online valuation tool.
Jamjar makes it simple to discover your vehicle’s value online. Enter your registration number to receive an instant valuation and explore your options with no obligation.