There’s a shift happening in the used car market right now, and I think most dealers can feel it.
Used car sales were up again last year, with more than 7.8 million vehicles changing hands across the UK¹. At the same time, the average age of cars on our roads has crept up to 9.5 years². A few years ago, it was closer to eight.
And honestly? I’m not surprised.
For a lot of motorists, used cars simply represent good value. The steepest depreciation has already happened, reliability is miles better than it used to be, and in a cost-conscious world, people are holding onto cars for longer and shopping smarter when they replace them.
When I first started in the motor trade, an older car often meant rust, rattles and a boot full of problems. Today’s used cars are a completely different proposition.
That said, the market is changing, and I think the next few years could look very different from the last few.
The Covid hangover the industry still feels
It sounds strange mentioning Covid in 2026, but the impact on the used car market is still very real.
During the pandemic, around 2.5 million new car sales effectively disappeared. Those cars never entered the parc, and now we’re seeing the knock-on effect in used stock availability.
For a while, the shortage was mainly in the three-to-five-year-old bracket. Now it’s moving further up the age curve. Industry forecasts suggest availability of five-to-six-year-old cars could fall by 25–30% over the next couple of years³.
That’s a huge shift for dealers trying to source quality stock.
And when supply tightens, prices usually follow.
Diesel isn’t dead… yet
Another interesting trend is diesel.
In the new car market, diesel has fallen off dramatically. Fewer than 5% of new cars sold today are diesel-powered¹. But in used cars? There’s still strong demand in the right areas of the market.
In fact, I wouldn’t be surprised to see newer used diesel cars become increasingly valuable in the short term as supply reduces.
Longer term, values could become more volatile as legislation, emissions policy and consumer behaviour continue to evolve. But for now, there’s still clearly a market for them.
EVs are becoming a used car story
At the same time, EVs are no longer just a “new car conversation”.
Used EV sales jumped by 45.7% last year⁴, and while petrol and diesel still dominate overall used sales, the shift is happening.
The reality is that around half of all new cars entering the market today are now electrified in some form¹. That means the used market will naturally continue to evolve over the next few years.
For dealers, I think there’s a real opportunity here. Customers still have questions around EV ownership, charging, battery life and long-term costs. Dealers who can confidently guide buyers through that transition will stand out.
Price matters. But so does reassurance
The biggest challenge for dealers right now is balancing rising costs with increasingly price-driven customers.
But I still firmly believe most buyers aren’t simply looking for the cheapest car on Auto Trader. They want confidence too.
Confidence in:
- The car
- The dealer
- The warranty
- And the aftersales support behind it
I was once told:
“Being on par in terms of price and quality only gets you into the game. Service wins the game.”
And I think that’s even more true today than it was then.
The dealers who will thrive in the years ahead won’t just be the cheapest. They’ll be the ones who combine value, trust and great customer experience.
The market is evolving — not disappearing
There’s no question the used car market is changing.
Stock profiles are shifting. EVs are growing. Older cars are staying on the road longer. Costs are increasing.
But good dealers have always adapted, and I suspect they always will.
Because while technology changes, one thing probably never will: customers still value reassurance, relationships and dealing with people they trust.
And in my experience, that will always matter more than simply being the cheapest.
Sources
¹ SMMT new car market data
² SMMT Motorparc data
³ Car Dealer Magazine stock shortage report
⁴ AM Online used EV sales report
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