If you think back 20 years, buying a car was a completely different experience.
Most people would spend their weekends driving from one dealership to another, walking around forecourts, speaking to sales staff and negotiating face to face. Research was limited to brochures, magazines or advice from friends and family. Once you had chosen your car, finance was usually arranged through a bank or directly with the dealership, and that was that.
Fast forward to today and the process has changed dramatically.
Now, the majority of buyers start their journey online. Before stepping into a showroom, people are comparing models, checking specifications, watching video reviews and reading real customer feedback. In fact, over 80% of buyers research online first, and around one in four UK drivers has bought a car without even seeing it in person. The power has shifted, and customers are more informed and more confident than ever before.
At the same time, how we pay for cars has evolved. Not everyone wants or is able to pay a large lump sum upfront. Recent figures show that fewer people plan to buy outright, while more are choosing flexible finance options. Around 40% of buyers now use some form of car finance, whether that is to spread the cost into manageable monthly payments, afford a higher-spec model or access a newer vehicle.
For many drivers, it’s not only about the cost, but about having more flexibility.
Major events like the 2008 financial crisis and the COVID-19 pandemic made many people rethink long-term financial commitments. Rising vehicle prices and supply shortages also pushed buyers to explore alternatives to traditional ownership. As a result, options such as Personal Contract Purchase (PCP), Hire Purchase (HP), leasing and subscription-style services have become far more popular.
For many drivers, it makes more sense to pay a fixed monthly amount, avoid worrying about depreciation and have the option to upgrade every few years. This is especially relevant with electric vehicles, where technology is advancing quickly and resale values can change faster than expected.
Another factor influencing buying decisions today is depreciation, particularly with electric vehicles. Some industry data suggests that, on average, EVs can lose around 60% of their value over three years, compared to closer to 45 to 50% for petrol models.
While EV technology continues to improve rapidly, this pace of development can impact resale values. For many drivers, this makes flexible options such as leasing more appealing, as it removes concerns around long-term depreciation and future resale uncertainty.
One option that has really taken off in recent years is leasing. This allows drivers to use a brand-new car for a fixed period, typically between one and five years, before returning it at the end of the agreement. For many motorists, this removes concerns around depreciation and resale value, while also providing the opportunity to upgrade to a newer vehicle more regularly. With predictable monthly costs and the flexibility to change cars every few years, leasing has become an increasingly appealing option for a growing number of drivers.
The buying journey itself is also much smoother than it used to be. You can now compare vehicles, apply for finance, ask questions and even arrange delivery, all from your phone or laptop. Convenience plays a huge role in modern car buying decisions.
What’s changed most over the last two decades isn’t just the technology inside the cars, it’s the mindset of the buyer. People want transparency, predictable costs and the ability to make decisions at their own pace. They’re less likely to rush into long-term commitments and more likely to weigh up what works best for their lifestyle. As expectations continue to evolve, so too will the ways we buy and use cars.
