According to research from AA Cars, the proportion of drivers looking to replace their car is double the number last year (16%).
The study found that 30% of buyers are planning to buy a mild hybrid, while 14% are considering plug-in hybrids and 10% will go fully electric.
Currently, 57% of Brits own petrol vehicles, but only 46% of those planning to purchase a car in 2025 intend to replace theirs with another petrol model. Similarly, while diesel ownership stands at 32%, only 21% of prospective buyers plan to choose a diesel vehicle in the future.
Used car prices are falling
For those exploring greener options, now may be a good time to buy. Used electric vehicle (EV) and hybrid prices on AA Cars’ platform are 10% lower than the same period in 2023, following a wave of fleet-owned EVs entering the market.
The Nissan Leaf, Renault Zoe, and Mitsubishi Outlander have seen some of the biggest price drops at 23%, 22% and 20% respectively.
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The AA found that budget constraints are a key factor in car buying decisions, with a third (33%) of drivers purchasing a vehicle this year setting a budget of less than £10,000. Of those polled, 16% of potential buyers plan to spend between £10,000 and £14,999, 12% between £15,000 and £19,999, and 9% between £20,000 and £24,999.
‘Renewed confidence’
James Hosking, director of AA Cars, said: “The surge in car buying interest this year reflects a renewed confidence among UK drivers.
“It’s also encouraging to see more drivers considering greener options, despite the fact that many household budgets are stretched. While electric vehicles (EVs) remain priced higher than traditional petrol and diesel cars, drivers are doing what they can by opting for more budget-friendly hybrid models.
“For those looking to make their money go further, buying a high-quality used car is an excellent way to stretch budgets while still upgrading to a more fuel-efficient or environmentally friendly model.”
He continued: “Data from our Used Car Index reveals prices for the most in-demand used petrol and diesel cars fell by 4% to £17,364 in the final quarter of 2024. Some of the best-value second-hand vehicles include Ford Transits (-19%), Volvo XC40s (-18%), and Ford Fiestas (-13%) – all of which have seen significant price reductions over the past year.
“Buying a quality used car not only promotes sustainability but also helps drivers manage their finances better as the cost-of-living crisis continues.”
