Cox Automotive revealed a stable outlook for used cars in 2026. Used car transactions could reach 7.83 million units, a 0.9% increase compared to 2025, yet still 6.1% below historical norms.
The Society of Motor Manufacturers & Traders reported that the used car market grew by 2.8% in Q3 2025, the third-best quarter on record since 2021. The easing of supply constraints, coupled with demand for lower-cost vehicles driven by cost-of-living challenges have helped.
Philip Nothard, Insight Director at Cox Automotive Europe, said: “We have developed an all-new wholesale market health index, the first of its kind in our industry, which tracks supply and demand in the used car market and benchmarks the industry’s performance.
“Taking into account the current dynamics across the used sector, the market health index stands at 84, representing a balanced, stable market.”
The outlook could be impacted by tactical registrations. With around 100,000 new cars registered in the final four days of September, this influx of vehicles is putting immense pressure on the nearly new market in the used sector.
Additionally, government policy changes could impact the UK’s used car supply. The removal of the Employee Car Ownership Scheme will reduce the number of high-spec cars entering market, as the scheme is responsible for 10% of annual registrations.
The same applies to changes to the Motability Scheme, which delivers a further 200-300,000 vehicles to the market annually.
Nothard said: “While the used market has been the sturdy backbone in an otherwise tumultuous market, issues on the horizon threaten to undermine this. An oversaturation of new registrations is creating oversupply, depressing values, and tying up dealer forecourts and credit capacity.
“Meanwhile, potential regulatory changes come at a time when retailers depend on these vital stock sources to counter the negative effects of dynamics in the new market.
“The automotive industry needs stability more than anything in the current environment, so we must come together as an industry to safeguard against the challenges and find certainty at an uncertain time.”
