The UK car market for new and used cars is expected to close 2025 with an estimated 9.8m total transactions, the largest combined new and used market since 2019.
Autotrader expects the retail market to return to its pre-pandemic size in 2026, with a forecast of 10.2m transactions – matching the heights last seen in 2019.
It predicts the used car market will grow 3% year-on-year 8.2m sales in 2026, continuing its progressive recovery since 2022.
In contrast, the new car market, which faces a combination of fierce competition and regulatory pressures, is expected to be see growth of 1%, achieving a total of 2.035m registrations.
According to Autotrader’s analysis three critical, structural themes will set the parameters for how the industry approaches 2026: used car stock, electric vehicles and new brand competition.
The battle for used car stock has been fuelled by the 2m new cars not sold during the pandemic, the impact of which continues to flow through the market
Another key theme of 2026 is the new phase of the electric vehicle (EV) transition.
Auto Trader said although it falls short of ZEV mandate targets, it’s clear EVs represent a significant pathway for new car growth, albeit with potential bumps and challenges to navigate on the way.
The third key theme for 2026 is the fast-changing brand landscape. With 72 brands currently competing for attention, 27 more than in 2019, with around 80 expected by the end of 2026.
Autotrader chief commercial officer, Ian Plummer, said: “2026 is set for growth, but the underlying narrative is one of structural change and intense competition.
“The fact that the UK’s combined new and used car market is on track to finally return to the same size as 2019 is a clear signal of the resilience and the fundamental necessity of car ownership for consumers.
