The used car market has entered 2026 on a positive footing after an estimated 7.8 million transactions in 2025, with retail sales on Autotrader ending the year 2% ahead of 2024.
Autotrader said December capped the year with a 4% year-on-year uplift in sales volumes, supported by robust consumer demand and stabilised pricing.
However, it warned the market remained constrained by supply, citing a shortfall of around 1.8 million 3 to 5-year-old cars compared to 2019, which continued to intensify competition for stock. The platform’s data also points to a shift in the balance between franchised and independent retailers in the younger used market.
At a recent media briefing, Autotrader said it expects 2026 to be a genuine inflection point for the UK car market
Independent retailers grew their share of 1 to 5-year-old cars, while franchised retailers’ share fell from 70% in 2024 to 68%. As a result, franchised sales were broadly flat over the year, down 0.5%, while independent sales rose by around 4% on average.
Autotrader said consumer interest remained exceptionally strong through the final quarter of 2025, with Q4 visits matching 2024’s high point and averaging 32 site visits every second.
Across the full year, the platform recorded nearly one billion visits (982 million).
It also pointed to improving sentiment following -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 more than eight in 10 car buyers are at least as confident about affording their next new car as they were last year.
On the back of those indicators, Autotrader is forecasting used car sales to rise by a further 3% in 2026, reaching approximately eight million transactions.
Commenting on the figures, Marc Palmer, head of strategy & insights at Autotrader, said: “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.”
Autotrader’s Retail Price Index showed average used car prices fell by just 0.2% over 2025. In December, the average used car price (£17,018) was flat year-on-year, following four consecutive months of growth, while month-on-month prices eased by 1% in line with typical seasonal trends.
The strongest price growth was concentrated in older vehicles, where Autotrader said demand continues to outpace supply.
The average price of a 10 to 15-year-old car (£6,877) rose 8.5% year-on-year in December, marking the ninth consecutive period of strong increases for that age bracket. By contrast, nearly new 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 wider market in December, rising 1.5% and 2.5% 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 year” for the used EV market.
Demand rose 28% year-on-year on Autotrader, accounting for more than one in seven enquiries for used cars under five years old, while used EV sales increased by 52% across the year.
Autotrader data also suggests EVs are turning faster than internal combustion models. In December, the average used EV took 30 days to sell, five days quicker than both the overall 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 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.”
