The used automobile market has entered 2026 on a positive footing after an estimated 7.8 million transactions in 2025, with retail sales on Autotrader ending the yr 2% ahead of 2024.
Autotrader said December capped the yr with a 4% year-on-year uplift in sales volumes, supported by robust consumer demand and stabilised pricing.
Nonetheless, it warned the market remained constrained by supply, citing a shortfall of around 1.8 million 3 to 5-year-old cars in comparison with 2019, which continued to accentuate competition for stock. The platform’s data also points to a shift within the balance between franchised and independent retailers within the younger used market.
At a recent media briefing, Autotrader said it expects 2026 to be a real inflection point for the UK automobile market
Independent retailers grew their share of 1 to 5-year-old cars, while franchised retailers’ share fell from 70% in 2024 to 68%. In consequence, franchised sales were broadly flat over the yr, down 0.5%, while independent sales rose by around 4% on average.
Autotrader said consumer interest remained exceptionally strong through the ultimate quarter of 2025, with Q4 visits matching 2024’s high point and averaging 32 site visits every second.
Across the complete yr, the platform recorded nearly one billion visits (982 million).
It also pointed to improving sentiment following the post-Budget lift in consumer confidence, with GfK Consumer Confidence up two points after the announcement and the Major Purchase Index increasing by five points year-on-year.
Autotrader added that its own research suggests greater than eight in 10 automobile buyers are a minimum of as confident about affording their next recent automobile as they were last yr.
On the back of those indicators, Autotrader is forecasting used automobile sales to rise by an additional 3% in 2026, reaching roughly eight million transactions.
Commenting on the figures, Marc Palmer, head of strategy & insights at Autotrader, said: “The used automobile market has shown remarkable stability and resilience throughout 2025. Ending the yr with sales volumes up and costs holding firm provides a really positive foundation for the months ahead.
“While we recognise that many retailers face ongoing challenges with supply and margin pressure, the elemental demand for automobile ownership stays the bedrock of this market.
“The mixture of strong demand and stable prices offer real opportunities for retailers who embrace a data-driven approach – those that pay close attention to the trends and insights will probably be well placed to capitalise.”
Autotrader’s Retail Price Index showed average used automobile prices fell by just 0.2% over 2025. In December, the common used automobile price (£17,018) was flat year-on-year, following 4 consecutive months of growth, while month-on-month prices eased by 1% in step with typical seasonal trends.
The strongest price growth was concentrated in older vehicles, where Autotrader said demand continues to outpace supply.
The typical price of a ten to 15-year-old automobile (£6,877) rose 8.5% year-on-year in December, marking the ninth consecutive period of strong increases for that age bracket. In contrast, nearly recent models (under 12 months old) saw prices contract by 2.7% to £31,395.
Fuel-type trends also diverged. Petrol (£14,877) and diesel (£14,025) values outperformed the broader market in December, rising 1.5% and a couple of.5% year-on-year respectively, while used electric models fell 7.4% year-on-year to £24,029.
Despite price pressure in younger used EV stock, Autotrader said 2025 was a “hugely positive yr” for the used EV market.
Demand rose 28% year-on-year on Autotrader, accounting for a couple of in seven enquiries for used cars under five years old, while used EV sales increased by 52% across the yr.
Autotrader data also suggests EVs are turning faster than internal combustion models. In December, the common used EV took 30 days to sell, five days quicker than each the general market average and petrol cars (35 days). Three to five-year-old EVs, where Autotrader said prices are stabilising and now level with petrol equivalents, sold in 25 days.
Palmer added: “We’re seeing a maturing EV segment and a consumer base that continues to be highly engaged attracted by a superb ownership experience, which incorporates annual savings of as much as £1,500 in ownership costs.
“With research behaviour remaining strong throughout December, we expect a big volume of those researchers to convert into buyers in January, as is typical for the beginning of a brand new yr.”
This Article First Appeared At www.am-online.com
