New Car Prices: What’s the UK Average?

Discover what you're likely to pay for a small, medium or premium/SUV model in 2025, and learn what factors might stabilise prices in the future - or even push them down. See the table for ‘Average car prices: UK’, below.

If you’ve been keeping an eye on new car prices, you won’t need reminding of their general trajectory: upwards.

Indeed, based on CPI data, car prices have soared by 25% since 2020, when Covid began. Industry reports - such as by Auto Trader and NimbleFins - put the increase even higher, at between 30 and 40%.

These price rises have been influenced by supply chain disruptions, shortages of semiconductors and parts, inflation and rising production costs - amongst other factors.

Registrations increase despite price rises

Understandably, new car registrations slumped in 2020 - to 1.6 million, representing a 30% year-on-year drop. However, data from 2024 saw nearly 2 million new registrations. And while this is some way off pre-pandemic levels (2.3 million), it demonstrates the UK’s new car market has enjoyed something of a resurgence.

Average Car Prices UK: New Car Costs in 2025

How much do cars cost in 2025? Depending on what you want from a new car, average prices vary.

If you’re in the market for a small car - such as a VW Polo or a Ford Puma - then according to NimbleFins, On The Road prices start between £18,505 – £26,350.

A medium-sized car, meanwhile - such as a Ford Focus or a VW Golf - starts at between £25,245 – £28,500, OTR.

And SUVs such as the Kia Sportage, Nissan Qashqai, and Tesla Model Y, start somewhere between £29,890 – £44,990, OTR.

UK Car Price List: Top 10 Best Selling Models (2025)

Average car prices UK: Here are prices for entry-level variants of the UK’s best selling models. Note that RRPs and offers change over time, so figures on this UK car price list are approximate.

Sales data from SMMT.

What about used car prices?

Used car prices surged during and after Covid, but have come down since. Data from Auto Trader and Marketcheck reveals an average overall used car price of £16,649, with petrol cars averaging £14,782 and diesels averaging £14,087. Electric vehicles, meanwhile, cost £26,139, while hybrids fetched £23,922 - on average.

Have car prices stabilised?

In the age of Trump, tariffs and trade wars, it’s not easy to predict how car prices - both new and old - might be affected. But we thought we’d try anyway…

Why prices could go up

Dealership prices might be elevated by further inflation, whereby manufacturers face higher costs. A lack of semiconductors - now so critical for modern vehicles - might also be an issue if supply chains are disrupted by war or manufacturing bottlenecks.

And a weak pound would make buying overseas-made cars and automotive components more costly, pushing up prices overall.

Why prices could go down

Thankfully, however, there are lots of factors that could drive prices down. The decades-long trend of globalisation, for example, may reverse. This could mean manufacturing is brought back to the UK or EU, which could much improve supply chains - and therefore costs. But this is a medium/long-term possibility.

There might also be a surge of used cars on the market, as leases taken out post-Covid mature and push both demand and prices down. Equally, if technologies in new cars become highly desirable, they might reduce demand for older models, leading to more rapid deprecation and a glut of older models on the market.

Cheaper Chinese and Indian imports?

But what would really help the UK consumer is a raft of affordable cars from China and India.

While sales of Chinese cars are nowhere near the likes of Ford, Nissan, Vauxhall and Kia, that might change if firms like BYD continue their current success. The manufacturer sold more than 8,700 passenger cars in the UK in 2024, an astonishing 658% year-on-year increase.

A lot of BYD’s popularity relates to its price points: An entry-level Dolphin starts at around £26,195, compared to £36,400 for a basic Tesla Model 3. Granted, the latter boasts double the acceleration and a slightly longer range, but cost-conscious consumers might happily do without those benefits if it means saving £10,000.

And then there’s India and the recently-announced free-trade agreement with the UK. The new deal could mean companies like Tata with its Nexon EV, and Mahindra & Mahindra with its XUV.e9 and BE.05 models, look to sell in the UK.

The primary attraction of such vehicles would arguably be the cost: A Nexon EV costs between £11,800 and £13,900 in India, suggesting this model - and others like it - might undercut most of the competition.

Watch this space…

We’ve answered the question How much do cars cost now - but what about the future?

Ultimately, what you’ll pay for a new car this year or next depends on many variables. With the vast majority of UK-sold cars being made overseas, what happens in distant parts of the world is sure to have an impact on dealership prices here.

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