CDL 2026

Supply squeeze, EV surge and AI: the three big challenges for dealers in 2026

Time 12:38 pm, March 23, 2026

The UK motor trade has entered a period of significant structural change, as supply pressures, shifting consumer behaviour and the rise of AI reshape the market, believes Autotrader.

Central to the company’s research session at this year’s Car Dealer Live, held at the British Motor Museum on March 19, was that while there are clear challenges and risk for car dealers of all sizes, there are also new commercial opportunities for businesses able to adapt quickly.

New white-paper research commissioned for Car Dealer Live by Autotrader set out a ‘playbook’ for 2026 outlining how dealers can use data-led decision-making across their operations to stay competitive as the market continues to evolve.

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It also highlights how emerging trends are already beginning to influence stock sourcing, pricing and sales strategies, arguing that dealers who act early on these insights will be better placed to protect margins and drive growth.

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 Autotrader’s, in-full on video to watch back at your leisure.

Replay tickets are available for the CarDealerLive.co.uk website.

During the panel session, hosted by Car Dealer’s James Baggott, Autotrader’s chief customer officer Ian Plummer explained the thinking behind the ‘playbook for 2026’.

‘We think there are three key themes at the moment that we see in all the data we have,’ he said. ‘About a billion visits came to Auto Trader last year, and that gives us the chance to understand the market.’

The research centres around three pillars – sourcing, sales, and systems.

On sourcing, Plummer said: ‘The supply challenge has been the one that’s probably driven the market in the last few years.

He added shortages are now spreading beyond franchised dealers.

‘It’s becoming a broader issue – more people are competing for the same cars, which might make things tight.’

Joining Plummer and host James Baggott was Vicky Hart of dealer group Waylands. She said that dealers are having to work harder to secure stock, with sourcing strategies evolving rapidly.

Over the next two years, the motor trade is forecast to experience a 35% drop in five-to-seven-year-old stock compared to 2024’s levels, leading Autotrader to encourage dealers to ‘diversify profitably’. Using live market data will help dealers identify alternative opportunities and drive profits, rather than just paying higher prices for in-short-supply stock to fill forecourts.

The panel session also explored the role of AI and technology in improving efficiency and profitability.


Plummer highlighted opportunities to automate routine tasks and better use data. ‘Take away the mundane,’ he said. ‘Free up your people to do the things where they add the most value.’

Hartley agreed, but warned against adopting technology without a clear purpose.

‘We are slowing down and starting with where we really see operational challenge,’ she said. ‘There are lots of conversations that start with selling the dream.’

She pointed to early results from new systems, including a 22% reduction in vehicle preparation times and AI handling 4% of service bookings.

‘We are seeing real tangible impacts,’ she said, adding that success depends on taking a ‘pragmatic’ approach.

The live session concluded that while pressures remain across supply, electrification and costs, dealers who embrace data, mix-up their sourcing strategies and deploy technology such as AI effectively will be best placed to capitalise on emerging opportunities.

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.

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large from 2014 and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



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