Car buyers reported spending £2,148 less on their latest purchase, with approved used overtaking new cars in a Tempcover survey.
The temporary insurance provider’s 2026 Car Buyers’ Report found average reported spending fell to £17,555, compared with £19,703 in its 2025 survey.
Approved used accounted for 39% of respondents’ most recent purchases, ahead of new cars at 37%. The proportion reporting a new car purchase fell from 44% in last year’s findings.
Franchised dealerships remained the most common buying channel, accounting for 51% of purchases.
The research surveyed 2,000 UK motorists about their most recent vehicle purchase. The findings compare responses across the two surveys, rather than tracking transaction prices across the market.
Affordability pressures shape buying decisions
One in five respondents (21%) found their latest car harder to afford than their previous purchase.
Among those reporting greater affordability pressures, 45% cited higher vehicle prices and 44% pointed to the wider cost of living.
A fifth wanted a newer or higher-specification vehicle, while 19% identified a shortage of good-quality, affordable second-hand cars. Higher insurance quotes were cited by 17%, with 16% highlighting finance costs or interest rates.
Price was the most frequently selected buying priority, at 52%, followed by reliability at 43% and practicality at 37%.
In-car technology attracted 7%, environmental considerations 6% and resale value 3%.
Claire Wills-McKissick, temporary car insurance 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.”
Respondents travelled an average of 37 miles for their latest purchase, compared with 45 miles in the previous survey. More than half bought within a 25-mile radius.
For their next purchase, 38% planned to choose petrol, 22% hybrid and 13% fully electric.
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