The UK new car market grew for the eleventh month in a row in October, although more slowly than earlier in the year. Electric cars took nearly a third of sales. Most new cars are bought on finance, so here’s what the latest figures mean if you’re thinking of changing your car.
In short
152,730 new cars were registered in October 2026, up 5.4% on last year, according to the SMMT. Battery electric cars took a 32.0% share, and registrations are up 9.8% so far this year. Private buyers rose 4.1%. Electric cars often come with manufacturer finance offers, but compare the total cost, not just the monthly payment.
The numbers
According to the SMMT:
- 152,730 new cars were registered in October 2026, up 5.4% on October 2025. It’s the 11th monthly rise in a row, but growth was about half the rate of the first ten months.
- Battery electric cars: 48,858, up 32.7%, a 32.0% share. Plug-in hybrids rose 30.1%.
- Petrol cars fell 11.6% and diesel 15.9%.
- 58,229 cars went to private buyers, up 4.1%. Fleet registrations rose 5.4%.
- So far this year, 1,892,000 new cars have been registered, up 9.8%, with electric cars taking 26.6%.
What it means if you’re buying on finance
- Expect EV offers to continue. Carmakers must sell a rising share of zero-emission cars. The SMMT expects electric cars to make up 27.2% of sales this year, short of the 33% target, so manufacturers have a strong reason to offer deposit contributions and low-APR finance on EVs. A low APR can come with a higher price, so compare the total amount payable.
- Interest rates have just risen. The Bank of England raised Bank Rate to 4% on 5 November. Manufacturer-subsidised deals are less affected than standard finance. See what the rate rise means for car finance.
- Think about running costs. With fuel prices high, the running costs of an electric car may be lower, but factor in the pay-per-mile tax from 2028.
- PCP protects you from falling values. The guaranteed final payment on a PCP means you can hand the car back if it’s worth less than the final payment at the end.
New car market FAQs
Are new car sales still rising?
Yes. October was the 11th monthly rise in a row, although growth has slowed. Registrations are up 9.8% so far in 2026.
Is it a good time to buy an electric car on finance?
Manufacturers are under pressure to sell more EVs, so offers are common. Compare the total cost of the deal, including running costs and the pay-per-mile tax from 2028, and use the car finance calculator to compare HP and PCP.
Does the interest rate rise affect new car deals?
It can push up standard finance rates over time, but the effect of a 0.25 point rise is small. Manufacturer offers are often subsidised, so they’re less affected.