For those contemplating a new vehicle purchase, the current market presents a prime opportunity, with fresh figures indicating that manufacturers and dealers are reducing prices by over 10%, pushing the average discount close to £6,000.
Substantial Savings Across All Vehicle Types
According to Insider Car Deals, a provider of discount data to prospective buyers, the typical discount available on all petrol, diesel, and electric cars in the UK stands at 11.4% of the on-the-road price. This equates to an impressive £5,911 in savings. On-the-road prices encompass all necessary extras for driving, such as road tax, registration fees, number plates, delivery charges, and VAT.
Electric Vehicles Lead in Discount Percentages
Electric vehicles (EVs) are seeing an average price reduction of 12.9%, which includes savings from government electric car grants applicable to certain models. The absolute discount size for battery cars is larger, averaging £7,091, primarily because manufacturers have been slower to produce electric versions of the smaller, more affordable cars that dominate the petrol market.
While this is advantageous for consumers, car industry executives express concerns that official EV sales targets are overly stringent, compelling them to offer what they describe as "unsustainable" discounts on battery cars. This situation is exacerbated by intense competition, particularly from emerging Chinese brands.
Petrol Models Also Offer Significant Reductions
Despite the industry's emphasis on EVs, some petrol models provide proportionally larger discounts. For instance, the popular British-made Nissan Qashqai can be found for around £36,000, representing a 17.9% reduction off the recommended retail price. In contrast, Nissan's similar-sized electric vehicle, the Ariya, has a discount of only 13.1%, resulting in an average price of £45,264, with some versions eligible for grants.
Kia's Niro EV is available at a 7.1% discount, priced at £38,460, though it does not qualify for a grant. Meanwhile, the Kia Niro Hybrid, which combines a small battery with a petrol engine, offers a 13.2% discount, bringing its price down to £33,225.
Strategic Buying and Ownership Considerations
Regardless of the vehicle type chosen, haggling often proves beneficial, especially towards the end of the month or quarter when dealers may be striving to meet sales targets.
Although the upfront cost for new electric cars may remain higher in many instances, the total cost of ownership could be lower, particularly for individuals able to charge at home. Battery motors are significantly more efficient, reducing energy loss to heat and noise, which directly translates to lower energy costs and substantially reduced carbon emissions. Maintenance expenses are also generally lower on average.
Financial Benefits of Electric Vehicles
The Energy & Climate Intelligence Unit (ECIU), a campaign group, recently calculated that internal combustion engines incur an annual "petrol premium" of approximately £1,300 at 2025 fuel prices. Colin Walker, head of transport at the ECIU, notes, "With a majority of people able to charge their vehicles at home and take advantage of cheap, night-time charging tariffs, these vehicles can deliver savings worth hundreds, even thousands of pounds a year."
The UK's electric car grant, offering up to £3,750, has facilitated price parity between electric and petrol models for some new cars. Walker highlighted the Ford Puma, the bestselling car in the UK in 2025, which starts from £26,580. This compares favourably with the electric Puma Gen-E, priced at £26,245 after the grant.
"It's no surprise that EV sales increased so significantly in 2025," Walker remarks. "The choice of models is constantly expanding and, crucially, the price of EVs is coming down as manufacturers compete with each other to hit their EV sales targets."
Market Dynamics and Future Outlook
During the coronavirus pandemic, shortages of new cars and subsequent chip supply issues meant discounts were unnecessary to move inventory. However, the market is now reverting to pre-pandemic patterns, with added pressure from competitive Chinese brands like BYD, SAIC's MG, and Chery's Omoda and Jaecoo, which offer attractive pricing. This resurgence has reintroduced bargains at car dealerships.
Pat Hoy, founder of Insider Car Deals, observes that the current level of discounting is "not unprecedented. The market as a whole is starting to look a lot like it did just before Covid, where the manufacturers are getting back to usual sale patterns, turning discounts on and off."
