The UK automotive retail market is heading towards one of its strongest years since before the pandemic, with new analysis from Autotrader forecasting around 10.17 million new and used vehicle transactions in 2026.
The forecast represents growth of 3.4% compared with last year and would make 2026 the largest combined new and used car market since 2019. It is a useful reminder that, despite pressure on household budgets and higher running costs, demand for cars remains resilient.
New and used markets are both contributing
Autotrader expects new car registrations to rise by around 9.5% to approximately 2.21 million vehicles this year. The used car market, which is much larger in volume, is forecast to grow by around 1.9% to roughly 7.95 million transactions.
That matters because the used market is where most UK drivers actually change cars. Even relatively modest growth in used volumes represents a very large number of vehicles moving between dealers, private sellers and buyers.
Why the market is proving resilient
Several factors are supporting activity. The new car market has benefited from increased model choice, strong manufacturer competition and attractive offers. At the same time, the used market continues to provide buyers with a much wider range of price points.
For some households, a nearly-new or three-to-five-year-old vehicle can offer a more manageable route into a newer generation of technology without paying the full cost of a brand-new car. That is particularly relevant as electric and hybrid cars begin to appear in greater numbers on the second-hand market.
More choice also means more competition
A larger market is good news for consumers, but it also means sellers need to work harder to make individual vehicles stand out. Price remains important, but buyers increasingly compare specification, mileage, condition, service history, running costs and seller reputation before making contact.
For private sellers, that makes a clear and complete advert more valuable. For dealers, maintaining accurate stock across multiple channels can make a real difference when buyer demand is spread across more brands and more vehicle types than ever before.
What buyers should take from the forecast
A growing market does not automatically mean every car becomes cheaper. Values can move very differently by fuel type, age, segment and model. However, greater transaction volumes generally mean more choice and more opportunities to compare similar vehicles before committing.
Buyers should still focus on the fundamentals: condition, provenance, service history, realistic pricing and the total cost of ownership rather than headline price alone.
What it means for sellers
With millions of used vehicles expected to change hands this year, there is a substantial audience for well-presented stock. Sellers who make their cars easy to discover, provide the information buyers actually want and respond quickly to enquiries give themselves a better chance of converting interest into a sale.
For Motavo, the wider trend supports the reason the marketplace exists: giving buyers another way to discover stock while helping private sellers and motor businesses put their vehicles in front of more people.
Source: Autotrader market forecast, 5 October 2026.
