Used car market enters into 2026 with surge in buyer engagement, but supply headwinds loom
9th February 2026, London – According to the latest data from Autotrader, the UK’s used car market has started 2026 on a strong footing, driven by a combination of very strong consumer engagement, rising retail prices, and robust transaction volumes. However, while these fundamentals reflect solid underlying market health, the industry faces a significant structural shift in supply in 2026 that will require retailers to adapt their forecourt strategies in the months ahead.
Leading the market’s strong start is a huge rebound in buyer engagement on the UK’s largest automotive platform. Following the typical festive lull, visits to Autotrader surged by nearly a quarter (24.7%) month-on-month to reach 86.3 million visits in January.
It reaffirms that the fundamental appetite for car ownership remains undiminished, with millions of consumers actively researching their next purchase. In fact, nine in 10 consumers consider ownership essential. And with Autotrader’s own research indicating over eight in 10 car buyers are at least as confident in being able to afford their next car as they were last year, the outlook for the used car market remains solid.
Buoyant consumer demand is supporting retail values. Based on 800,000 daily observations across the whole retail market, Autotrader’s Retail Price Index indicates the average price of a used car was £17,294 in January, which is the highest monthly average since November 2023. On a like-for-like basis, it represents a 0.2% year-on-year (YoY) increase, and 0.1% month-on-month (MoM).
This ongoing stability is being driven by specific pockets of growth. The 10-15-year-old age bracket remains the standout performer, with average prices rising 9% YoY last month to an average of £6,949. It’s the result of strong levels of demand (7.3% YoY) outpacing a slight softening in the current volume of supply (0.3% YoY). It means retailers advertising these vehicles on Autotrader are seeing high engagement and great margin opportunity.
A look within Autotrader’s fuel type data reveals that the average price of used petrol cars (£15,039) rose for the tenth consecutive month (1.5% YoY) in January. It’s due to demand (-2.5% YoY) remaining ahead of supply (-7.1% YoY), albeit levels of both softening on the same period last year. Conversely, demand for used electric vehicles (EV) rocketed over 16% YoY. However, with supply levels increasing at more than twice the rate (33.1%), the average retail price of a used EV fell -7.2% (£23,678).
Speed of sale remains robust
With demand high and prices stable, stock continues to turn over at a healthy pace. Cars took an average of 41 days to sell in January—matching the speed seen in January 2025. Crucially, EVs continue to defy negative headlines, remaining the fastest-selling fuel type at just 38 days. Those aged 3-5-years-old, where prices are on par with their petrol counterparts, left forecourts within just 34 days. This suggests that while EV supply is rising, demand is large enough to absorb it, keeping these vehicles moving off forecourts faster than petrol or diesel alternatives.
Sales volumes stable, but ‘middle-aged’ supply challenge looms
The robust health of the market is further evidenced by transaction levels. Autotrader’s retail sales data reveals that overall sales volumes in January were stable, and largely flat versus the same period last year.
While the headline metrics are positive, due to the c.2.5 million new cars not sold during the pandemic, the market is seeing a period of increased competition, which is set to affect a larger swathe of retailers in the next two years. The ‘lost’ new car production, which initially impacted younger stock, is now maturing into older age brackets, creating a cliff edge for ‘middle-aged’ stock: Autotrader’s analysis indicates the volume of 5-6-year-old cars in the market are set to drop 25% - 30% in 2026 compared to 2024. The situation is expected to worsen in 2027, when the fall could reach 35% for cars aged 5-7-years.
Despite such a significant shift in stock dynamics, Autotrader’s data highlights there are enough cars in the market to meet the very strong levels of consumer demand. Success in such a complex and competitive market, however, will depend on retailers’ ability to utilise the available data to diversify their forecourts.
The metrics for January tell a clear story: the market is healthy, buyers are back in force, and stock is selling. To see visits rebound by nearly 25%—bringing millions of eyes back to our partners' stock—confirms that the seasonal bounce is as strong as ever.
“But while the year has started with momentum, it’s important we keep our eyes on the road ahead. The pandemic gap is moving through the market, and we expect a sharp drop in the availability of 5-7-year-old vehicles over the next couple of years. We’re already seeing some retailers outperform the market by adapting to these shifts, but the pressure is only set to grow. The demand is there, and on our platform the audience is there, but the cars might not be the ones you’re used to selling. Success in 2026 will come to those who use data to identify the new pockets of profit—diversifying into different ages and fuel types—rather than waiting for the old supply chains to return.”
Top 10 used car price growth (all fuel types) | January 2026 vs January 2025 like-for-like
Top 10 used car price contraction (all fuel types) | January 2026 vs January 2025 like for like
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