Used car market enters 2026 with positive momentum as 2025 sales finish 2% ahead of previous year
The UK’s used car market has entered the new year with positive momentum behind it, following a resilient performance throughout 2025. According to the latest data from Autotrader, the year concluded with an estimated 7.8m [1] used car transactions, following a 2% growth in retail sales on Autotrader compared to 2024, underpinned by robust consumer demand and stabilised pricing.
Whilst December capped the year with a positive c.4% YoY uplift in sales volumes, a look under the bonnet reveals a highly nuanced market hampered by supply constraints. Last year, this included a shortfall of around 1.8m [2] 3-5-year-old cars compared to 2019, which fuelled competition for available stock, and a notable shift in the balance of the market. Independent retailers successfully grew their share of 1–5-year-old cars, while franchised retailers saw their share fall from 70% in 2024 to 68%. Consequently, franchised sales remained largely flat (-0.5%) over the year, while independent sales grew on average around 4%.
Positive consumer sentiment supports 2026 growth forecast
Despite these challenges, another defining feature of 2025 was the exceptionally high level of consumer engagement. Throughout the final quarter of last year, car-buying activity remained robust, with Q4 visits matching 2024’s high and averaging 32 site visits every second. Over the course of 2025, the platform saw nearly one billion visits (c. 982m).
Interest in used cars was further buoyed by a post-Budget lift in consumer sentiment. GfK Consumer Confidence rose by two points after the announcement, and the Major Purchase Index increased by five points YoY. These indicators are further evidence that car ownership remains a necessity. Added to Autotrader’s own research which shows over eight in 10 car buyers are at least as confident in being able to afford their next new car as they were last year, it reinforces its forecast for continued market growth in 2026: a further 3% YoY increase in used car sales, reaching approximately 8m transactions.
The used car market has shown remarkable stability and resilience throughout 2025. Ending the year with sales volumes up and prices holding firm provides a very positive foundation for the months ahead. While we recognise that many retailers face ongoing challenges with supply and margin pressure, the fundamental demand for car ownership remains the bedrock of this market. The combination of strong demand and stable prices offer real opportunities for retailers who embrace a data-driven approach—those who pay close attention to the trends and insights will be well placed to capitalise.
Retail prices stabilise
Thanks to these market dynamics, retail prices continued to stabilise over the course of 2025. Autotrader’s Retail Price Index shows that average prices declined just -0.2% over the year. In December, the average price of a used car (£17,018) was flat YoY, following four consecutive months of growth, whilst month-on-month, prices eased by 1%, reflecting typical seasonal trends.
Autotrader’s data shows the recent strength was concentrated in older vehicles, where demand growth continues to outpace supply: the average price of a 10–15-year-old car (£6,877) rose 8.5% YoY in December—the ninth consecutive period of strong increases for this age group. In contrast, nearly new models (under 12 months old) saw prices contract -2.7% (£31,395).
There is also significant nuance in the fuel segments. Whilst both petrol (£14,877) and diesel (£14,025) values outperformed the market in December, rising 1.5% and 2.5% YoY respectively, prices for used electric models were down -7.4% YoY (£24,029).
Used EVs lead growth in fastest-selling segment
Whilst pricing for younger EVs is under some pressure, this headline figure belies what was a hugely positive year for the used EV market, which saw demand rocket 28% YoY on Autotrader, and accounted for more than one in seven of used car enquiries under five years old. Such is the demand, 2025 saw a massive 52% increase in used EV sales.
Electric vehicles are also selling much faster than their ICE counterparts. In December, the average used EV took 30 days to sell: five days faster than both the market average and their petrol counterparts (35 days respectively). 3-5-year-old electric models, where prices are stabilising and now level with their petrol equivalents, sold in just 25 days. Some key retailers are using electric cars as an integral part of their pricing strategies, and as such, the softening in EV prices is also due, in part, to competitive pricing among younger returning stock.
Palmer added: “We’re seeing a maturing EV segment and a consumer base that remains highly engaged attracted by a brilliant ownership experience, which includes annual savings of up to £1,500 in ownership costs. With research behaviour remaining strong throughout December, we expect a significant volume of these researchers to convert into buyers in January, as is typical for the start of a new year. As ever, we remain deeply committed to working closely with our retail partners, using data-driven insights to help them seize every opportunity available within these changing market dynamics, and tailor the best strategies for their unique needs.”
Top 10 used car price growth (all fuel types) | December 2025 vs December 2024 like-for-like
Top 10 used car price contraction (all fuel types) | December 2025 vs December 2024 like for like
[1] Based on Autotrader’s retail sales data, which uses the volume of stock to leave the platform as a proxy for total used car sales
[2] There were circa 4.8m 3-5-year-old used cars in the market in 2019, vs circa 3m in 2025.
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