The combined UK new and used car market is set for 3.4% growth in transactions this year, according to the latest forecast from Autotrader.
The marketplace has forecast a combined 10.17 million transactions in 2026, which it said would be the biggest total since 2019.
This is largely due to stronger-than-expected growth from the new car market, which is now expected to see 2.21 million registrations this year, which would represent 9.5% year-on-year growth. Autotrader said factors behind this growth included competition from new market entrants encouraging more aggressive pricing and attractive offers, and the UK Government’s ZEV mandate encouraging EV sales.
Autotrader said the strength of the new car market was particularly notable given economic uncertainty seen during much of 2026, although it added that consumer confidence in major purchases had recently reached its strongest level since December 2021, and that wider consumer confidence had recently reached a two-year high.
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As for the used market, this is forecast to achieve 7.95 million transactions this year, representing 1.9% year-on-year growth, as well as the highest annual transaction volume since 2017. Autotrader said this growth was being achieved despite continued unevenness in used vehicle supply, and noted that the forecast increase in new car sales was not expected to come at the cost of used market demand, with used cars continuing to sell quickly and like-for-like retail prices remaining broadly stable, which it said highlighted the strength of underlying demand.
Encouragement from diverse growth
Marc Palmer, head of strategy and insights at Autotrader, said: “What’s particularly encouraging is that growth isn’t confined to one part of the market. New car registrations are recovering strongly but used car transactions are also increasing from what is already a very high base. That tells us the overall automotive market is growing, rather than new car demand simply taking sales away from the used market.
“New car buyers are benefiting from intense competition, attractive offers and greater consumer choice, while the used market continues to demonstrate its resilience despite an uneven supply picture.
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“With cars continuing to sell quickly, car-buying intent remaining robust and wider consumer confidence improving, there are genuine reasons to be positive about the outlook for the remainder of 2026.”