1:31 pm, March 25, 2026
Car dealers are being forced to adapt to a new ‘stock-constrained normal’ as pressure mounts on supply despite continued strength in the used car market, new research from Motorway has highlighted.
The used car marketplace’s white-paper, which was presented at Car Dealer Live 2026, revealed that 78% of used car dealers are more worried about stock availability this year than in 2025, showing that this is beyond being a short-term issue.
Despite Society of Motor Manufacturers data showing that used car transactions rose by 2.2% to more than 7.8 million vehicles in 2025, dealers told Motorway that conditions on the ground are tightening, with 74% reporting lost sales due to stock shortages and 46% experiencing margin pressure.
Presenting the findings in a session hosted by Car Dealer editor-in-chief James Baggott was Motorway CEO and co-founder Tom Leathes (pictured top).
The full white-paper can be downloaded here, and the session can be watched by visiting the Car Dealer Live website where you can purchase a replay ticket. This will allow you to watch back each session, including Motorway’s, in-full on video to watch back at your leisure.
Replay tickets are available from the CarDealerLive.co.uk website.
‘We’ve had a shortage of “golden stock” – the three-to-seven-year vehicles, and that is clearly continuing,’ he said.
He added: ‘What’s interesting is it’s not getting any better or changing. So the fact that this year, actually, people are finding it harder than last, is interesting.”
The shortage is particularly apparent in key segments, with hybrid vehicles identified as the most in-demand. Motorway’s data shows dealer competition is intensifying across multiple age brackets, particularly in younger used vehicles.
Leathes said: ‘We’re seeing some pretty interesting trends around specific stock types, like hybrids, which we’ve got the highest bid rate ratio on the platform over the past six months.’
Motorway’s white-paper research found that as competition increases, dealers are relying more heavily on digital tools to source vehicles.
It found that 92% of dealers believe digital stock sourcing is now essential.
‘I suppose that’s not a surprise, but I don’t think it’s all in one bucket because some digital sourcing is really just another way to buy stock from the same place in a different way. Whereas what we are doing is something very different, which is this exclusive private stock, which pre-Motorway didn’t really exist.’
The Motorway platform, which connects dealers directly with private sellers, now lists more than 2,000 vehicles per day, offering an alternative supply channel to dealers experiencing this constrained market.
Despite these pressures, the overall market remains strong, with demand continuing to outstrip supply in key areas.
‘The UK used-car market is worth £100 billion annually and continues to show strong consumer demand,’ Leathes said.
But he warned that headline growth figures do not reflect the reality for many dealers.
‘The headline growth doesn’t reflect the reality that many dealers are facing. Increased consumer demand means that the most in-demand stock is moving faster.’
He added: ‘This year dealers will be looking for smarter, more efficient ways to access the right stock at the right time and the right price.’
The full white-paper can be downloaded here, and the session can be watched by visiting the Car Dealer Live website where you can purchase a replay ticket.
Watch (and listen on Spotify) James Baggott’s highlights of Car Dealer Live 2026 below.
