Is Now a Good Time to Buy a Car in the UK?

Thinking about buying a new or used car? For most people in the UK, the right time to buy depends less on the market and more on you: whether you need a car soon, what you can afford over the whole time you own it, and whether you can buy carefully.

Market conditions matter at the edges, and this guide sets out what the latest figures show. But the best time to buy is usually when you need a car, you can afford to run it, and you have done your checks. Start with these five questions.

Is now a good time for you? Five questions to ask

Do you need a car now? If you need a car for work, family or getting around, and your current one is unreliable or expensive to keep running, waiting for a perfect market can cost you more in repairs, hire cars or missed opportunities. If you are simply thinking about an upgrade, you have time to wait for the right car and the right deal.
Can you afford the total cost, not just the price? Add up insurance, vehicle tax, fuel or charging, servicing, the MOT, tyres and repairs. A cheaper car can cost more to run, and a car in a high insurance group can make the monthly bill much bigger. Our guide to car insurance groups explains why the model you choose matters.
How will you pay? Compare the APR and the total amount payable. If you use finance, the two figures to compare are the APR and the total amount you will repay, not just the monthly payment. A low monthly figure can hide a large final payment or a long agreement. Make sure the payments would still be manageable if your circumstances changed.
New or used? New cars come with a full manufacturer warranty and the latest safety and efficiency technology, but they usually lose value fastest in their early years. Used cars cost less to buy, but you need to check their history carefully. Your budget and how long you plan to keep the car should guide this choice.
Is an electric car right for you? This depends on where and how you would charge it, how far you drive, and the price of the car you want. See the section on electric cars below.

The UK car market in October 2026

New cars

According to the Society of Motor Manufacturers and Traders (SMMT), 152,730 new cars were registered in October 2026, 5.4% more than in October 2025. It was the 11th month of growth in a row. Battery electric cars took 32.0% of new registrations that month.

Used cars

In October 2026, the average asking price for a used car on Autotrader was £17,321. On a like-for-like basis, used car prices were 1.8% lower than a year earlier and unchanged on the month before, according to the Autotrader Retail Price Index. Used cars took an average of 29 days to sell, the same as a year earlier.

Used electric cars were the exception. Their average asking price was £25,263, and on a like-for-like basis their prices rose 2.8% year on year and 1.3% on the month before, the sixth month in a row of like-for-like growth.

These figures are averages across the whole market and change every month, so they cannot tell you whether a particular car is fairly priced. Check the latest figures, and compare the car you are interested in with similar listings.

New vs used: which makes more sense?

With used car prices slightly lower than a year ago on a like-for-like basis, a well-checked used car remains good value for many buyers. If you are looking at electric cars, compare new and used carefully: used electric car prices have been rising, while some new electric cars qualify for a government grant that is taken off the price at the point of sale.

If you prefer the peace of mind of a warranty, a newer used car that still has some of its manufacturer warranty left can be a sensible middle ground.

Electric cars: points to check before you buy

The Electric Car Grant. Some new zero-emission cars qualify for a discount of up to £3,750 (Band 1) or up to £1,500 (Band 2). According to Auto Express, the car must have a starting price of £37,000 or less, and used cars do not qualify. You do not apply yourself: the seller takes the discount off the price. Eligible models change, so check the official GOV.UK list of eligible cars before you buy.
Vehicle tax. Electric cars now pay the same standard rate of vehicle tax as petrol and diesel cars. Under GOV.UK’s April 2026 rates, cars first registered on or after 1 April 2017 pay a standard rate of £200 for 12 months from the second year of tax. An expensive car supplement of £440 a year is added for five years, starting from the second year of tax, for cars with a list price over £40,000. For zero-emission cars first registered on or after 1 April 2025, the threshold is £50,000. Rates usually change each April, so check the current figures.
Charging. Running costs depend heavily on whether you can charge at home. Public charging prices vary, so work out your likely cost per mile before committing.

Checks to make before you buy any used car

Whatever the market is doing, careful checks protect you far more than good timing. GOV.UK recommends that you:

Ask the seller for the registration number, make and model and the MOT test number.
Check that these details match the vehicle information held by the DVLA.
Check that the MOT status and history match what you have been told. The MOT history can help you spot gaps or mileage that does not add up.
Check whether the car has been recalled for a safety issue.
When you see the car, check the V5C logbook has a “DVL” watermark, that its details match what the seller told you, and that the vehicle identification number (VIN) and engine number match the logbook.

Many buyers also pay for a private vehicle history check, which can help show whether a car has outstanding finance or has been recorded as written off or stolen. After you buy, GOV.UK says you should tax the vehicle straight away.

If something goes wrong after you buy from a dealer, you have legal rights. Our guide to your rights if you buy a faulty used car explains what to do.

Had car finance before? Check whether you could be owed money

If you had a car finance agreement between 6 April 2007 and 1 November 2024, you may be eligible for compensation under the Financial Conduct Authority (FCA) motor finance redress scheme. Parts of the scheme have been suspended while a legal challenge is heard, and the FCA says payments are expected to begin in 2027 if the scheme is upheld and is not appealed. You do not need a claims management company or law firm to complain; the FCA warns that using one could mean paying up to 36% of any compensation in fees, including VAT. See the FCA’s car finance page for the latest position.

So, is now a good time to buy a car?

If you need a car, can afford the full running costs, and are prepared to check the car properly, now is as reasonable a time as any. If you are buying electric, compare the grant on eligible new models with used electric prices, which have been rising. If you do not need a car yet, there is no harm in taking your time and saving a larger deposit.

Your next step: pick two or three cars that suit your needs, and compare several equivalent listings for each, with similar age, mileage and specification. Then compare the total cost of owning each one, including insurance, before you decide.

Frequently asked questions

Are used car prices going down in the UK?

In October 2026, the average asking price for a used car on Autotrader was £17,321. On a like-for-like basis, used car prices were 1.8% lower than a year earlier, while used electric car prices rose. Prices change monthly, so check the latest figures.

Is it better to buy a car at a particular time of year?

The most important factor is your own circumstances. A careful choice of car and a good check of its history usually matter more than the month you buy in.

Can I get a grant for a used electric car?

No. The Electric Car Grant applies only to eligible new cars. See the GOV.UK list of eligible cars.

Market figures and rates in this article are for October 2026 and were correct when it was written in November 2026. This is general information, not financial advice.

Sources: SMMT: new car registrations, October 2026; Autotrader: Retail Price Index, October 2026; GOV.UK: zero emission vehicles eligible for a grant; Auto Express: Electric Car Grant; GOV.UK: rates of vehicle tax (V149), April 2026; GOV.UK: check a used vehicle you are buying; FCA: car finance claims.