Dealers saw a leap in funding for EVs and hybrids in the first two months of the year, according to the latest data from NextGear Capital.
Dealers funded 807 EVs and 1,011 hybrid vehicles in this period, which represented a 157% and 77% increase, respectively.
“The increase in alternative fuelled vehicles funded this year is one of the largest we’ve seen. By comparison, growth during the same period in 2025 was only 36%.
“With more hybrids and EVs entering the used car market, dealers are clearly becoming more confident in stocking these vehicles,” said Chris Moore, head of credit and customer operations at NextGear Capital
The analysis of dealer activity between January and February 2026 revealed that dealers across the UK increased both the number of vehicles on their plans and their credit limits.
Between January and February 2026, average credit limits increased by 28% compared with the same period in 2025, as independent dealers saw the largest increase of 27%.
Franchised retailers also saw a 21% increase, well above the modest rate of growth recorded between 2024 and 2025 (5%). In addition, the number of vehicles on dealers’ plans increased by 11.1% year-on-year.
Moore said: “Credit limits remain a key performance indicator of market health, as they reflect both dealer demand for funding and funder confidence in risk exposure.
“We undertake extensive analysis when making decisions to increase a customer’s credit limit.
“Therefore, sustained growth in credit availability points to improving credit profiles, stronger dealer performance and increased confidence in the resilience of the used market.”
Stock turn rates remained consistent year-on-year, with no change in the average number of days on plan between early 2025 and early 2026. This reflects typical seasonal trends, with the opening months of the year often quieter as the market gears up for increased activity in spring.
The average cost of cars funded through NextGear Capital between January and February 2026 reached £11,018, 4.6% higher than the equivalent period in 2025. This upward movement reflects both the rising price of used cars and dealers’ increasing willingness to fund higher-value stock.
