Four in 10 car owners have reduced the number of vehicles they own within the last two years, saving up to £1,533 annually, according to a survey of 2,000 adults. The shift is driven by affordability worries, lifestyle changes, environmental concerns, and remote working.
Financial Benefits
Those who downsized from multiple cars to one have saved up to £1,533.24 a year, with 57% saying they are now financially better off. Of those, 41% put the extra cash into savings or investments, while 34% used it on everyday essentials like groceries and energy bills.
Making One Car Work
Families with a single car are finding ways to coordinate. The most common approach is giving the car to whoever needs it most that day (39%). A quarter (25%) settle it through a chat, 18% prioritize work or education commitments, and 7% use a 'first come, first served' rule. Only 4% have a structured daily rota. While 23% have occasionally missed plans due to sharing, most say the trade-off is worth it.
National Trends
Official statistics from the National Travel Survey 2024 show single-car households outnumber multi-car households by 10 percentage points: 44% of UK homes have one vehicle, compared with 34% with two or more.
Paul Gilshan, CEO of Tempcover, which commissioned the research, said: “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.”
Challenges and Attitudes
The study found 22% of single-car households have disagreements about sharing. When asked about sharing with family or friends, 28% cited worries about others' driving, and 24% were put off by the hassle or cost of changing insurance policies.
More than half (56%) of car owners are keeping their cars longer than planned due to high replacement costs. Six in 10 blamed current car prices, while 50% pointed to the cost-of-living squeeze. The typical household car is now seven years old.
Meanwhile, 39% say their driving habits have permanently changed since the pandemic, driving much less than before. The average car owner spends £174.95 a month on running and maintenance.
Future of Car Ownership
Looking ahead, 23% would consider ditching ownership for “usership” options like car-sharing apps or temporary insurance. More than a quarter (26%) may do this within a few years, and 15% are already considering it within six months.
Gilshan added: “The friction around insurance is one of the main issues stopping people from sharing more flexibly. The risk to a no claims bonus or the cost of changing an annual policy, but when that barrier comes down, the case for usership becomes compelling.”
