Two-car households in sharp decline as drivers seek to cut costs

The continuing cost-of-living crisis has seen 36 percent of households save more than £1,500 a year by cutting back to one car.

British motorists are using the money saved by switching to one car on savings and investments, or everyday spending

The days of the two-car household are in decline, according to a new survey of British motorists.

Almost one-in-four (36 percent) drivers said they had reduced the number of vehicles they own during the last two years. 

Although 32 percent of these noted a lack of need for multiple cars had driven their choice, affordability was a factor for 26 percent.

High maintenance and repair costs persuaded 18 percent to stop owning multiple motors, with 16 percent citing a need to reduce overall household spending. 

Those who made the move to downsize to just one car are said to be reaping the rewards, saving an average of £1,533.24 each year.

Adapting to single-car life

UK Moving to One Car Households

Analysis of government data by TempCover found that single-car households now outnumber multi-car residences by 10 percent.

Some 44 percent of UK households only have one car, compared to 34 percent with multiple vehicles. 

The pandemic had a substantial impact on attitudes to motoring, with 39 percent saying they drive substantially less than before 2020.

Shifts towards working from home have been a factor for 13 percent of those choosing to downsize. 

Almost a quarter (23 percent) said they planned to shift away from car ownership completely during the next few years. Instead, they aim to rely on car sharing apps or temporary insurance when they need to drive.

Downsizing brings financial benefits

UK Moving to One Car Households

Tempcover’s research found that an average of 1.76 drivers per household share a single vehicle, with families having to develop new ways to manage who uses the car.

Almost half (46 percent) said they believed their agreements worked harmoniously, even if 22 percent of those in single-car households said they experienced arguments about having to share. 

Regardless, more than half (57 percent) said they were financially better off after downsizing. 

The money saved is being put into savings and investments by 41 percent of those surveyed, although 34 percent had to put the extra capital towards everyday expenditure. 

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.”

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John Redfern
John Redfern
U.S. Editor with a love of all things Americana. Woodgrain-clad station wagons and ridiculous muscle cars a speciality.

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