UK motorists are abandoning petrol, diesel and electric cars as households save up to £1,500 by downsizing, new research reveals. A study by Tempcover found that four in ten car owners have reduced the number of vehicles they own within the last two years. Single-car households now outnumber multi-car households, with 44% of UK households owning just one vehicle, compared to 34% with two or more.
In a poll of 2,000 UK adults, 57% of road users who downsized say they are now financially better off. The most common reason for giving up a vehicle was a reduced need to drive, with 32% stating they no longer travel enough to justify a second vehicle. Affordability was the highest reason for 26% of individuals, followed by high maintenance and repair costs for 18% of road users.
Savings and expert insight
Experts warn that households downsizing to one car save an average of £1,533.24 per year. Paul Gilshan, CEO of Tempcover, commented: “Our research shows that for households that have downsized, one car works well. People are better off financially, it fits how they're working and living now, and they're more intentional about when they use it – and it’s better for the environment.”
“In many ways, these households are already practising a form of car sharing – coordinating access, prioritising who needs it most, making it work around everyone's schedule. The car is more of a shared resource rather than a personal fixture, and that mindset is only going to grow.”
Challenges and future trends
However, the study found that 22% of road users in single-car households often experience disagreements around sharing transport. Nearly a quarter of road users (23%) said they could ditch car ownership entirely, relying instead on car-sharing apps or temporary insurance to borrow vehicles.
Paul added: “For some, that could mean moving away from traditional ownership altogether. For others, it's simply about having greater flexibility in the moments they need it, whether that's borrowing a family member's car or lending their own.”
