Used car sales tipped to break eight-million barrier

Used car sales rose four per cent in December to take annual sales to an estimated 7.8 million units, according to new figures from Auto Trader.

It is now predicting used car sales to exceed eight million during 2026.

However, despite a robust performance last year and strong predictions for this year, Auto Trader analysis reveals a highly nuanced market still impacted by supply constraints.

It found that last year there was a shortfall of around 1.8 million 3-5-year-old cars compared to 2019. This fuelled competition for available stock with independent retailers increasing their share and reporting an increase in sales of four per cent, while franchised retailers saw their share of stock drop with sales down 0.5%.

Electric vehicles

In terms of electric vehicles, sales surged by 52% year-on-year to account for more than one in seven used car sales.

Electric cars are also selling faster than petrol and diesel models, averaging 30 days in December which is five days faster than petrol equivalents.

Remarkable stability

Marc Palmer, head of strategy and insights, said: “The used car market has shown remarkable stability and resilience throughout 2025. Ending the year with sales volumes up and prices holding firm provides a very positive foundation for the months ahead.

“While we recognise that many retailers face ongoing challenges with supply and margin pressure, the fundamental demand for car ownership remains the bedrock of this market.

“The combination of strong demand and stable prices offer real opportunities for retailers who embrace a data-driven approach; those who pay close attention to the trends and insights will be well placed to capitalise.”

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