The UK’s used car market has started 2026 strong, according to Autotrader.
This is driven by a combination of very strong consumer engagement, rising retail prices, and robust transaction volumes.
Marc Palmer, Autotrader’s Head of Strategy and Insights, said: “The metrics for January tell a clear story: the market is healthy, buyers are back in force, and stock is selling. To see visits rebound by nearly 25%—bringing millions of eyes back to our partners’ stock—confirms that the seasonal bounce is as strong as ever.
“But while the year has started with momentum, it’s important we keep our eyes on the road ahead. The pandemic gap is moving through the market, and we expect a sharp drop in the availability of 5-7-year-old vehicles over the next couple of years.
“We’re already seeing some retailers outperform the market by adapting to these shifts, but the pressure is only set to grow.”
The industry faces a significant structural shift in supply in 2026 that will require retailers to adapt their forecourt strategies in the months ahead.
Following the typical festive lull, visits to Autotrader surged by nearly a quarter (24.7%) month-on-month to reach 86.3 million visits in January.
Over eight in 10 car buyers are at least as confident in being able to afford their next car as they were last year.
Based on 800,000 daily observations across the whole retail market, Autotrader’s Retail Price Index indicates the average price of a used car was £17,294 in January, which is the highest monthly average since November 2023.
On a like-for-like basis, it represents a 0.2% year-on-year (YoY) increase, and 0.1% month-on-month (MoM).
The 10-15-year-old age bracket remains the standout performer, with average prices rising 9% YoY last month to an average of £6,949.
It’s the result of strong levels of demand (7.3% YoY) outpacing a slight softening in the current volume of supply (0.3% YoY).
It means retailers advertising these vehicles on Autotrader are seeing high engagement and great margin opportunity.
