8:49 am, October 6, 2026
The motor trade is on course for its busiest year since 2019, with more than 10m new and used vehicle transactions expected in 2026.
Autotrader has upgraded its outlook after the new car market performed better than expected, while demand for used vehicles has remained resilient.
The marketplace now expects a combined 10.17m transactions this year – a 3.4% increase on 2025.
Crucially for dealers, the growth is expected on both sides of the market rather than stronger new car sales simply taking customers away from used vehicles.
Autotrader is forecasting 2.21m new car registrations during 2026, which would represent a hefty 9.5% year-on-year increase.
It believes increasingly fierce competition between manufacturers is playing a major role, with new entrants helping to drive more aggressive pricing and attractive offers across the market.
The ZEV Mandate is also supporting electric car volumes as manufacturers introduce more affordable EVs and push registrations through both retail and fleet channels.
Improving consumer confidence is providing another boost, with confidence around major purchases recently reaching its highest level since December 2021.
Used car market heading for best year since 2017
Despite the increasingly competitive offers available on new cars, Autotrader is also predicting growth in used vehicle sales.
It expects 7.95m used transactions in 2026, up 1.9% year-on-year and the highest annual total since 2017.
There is likely to be some movement between nearly new and brand-new cars as buyers take advantage of manufacturer offers, but Autotrader believes the overall market is expanding rather than demand simply moving between the two.
The forecast comes despite continued variations in used car supply depending on vehicle age.
Autotrader believes stronger new car registrations should ultimately help the used sector too, providing a healthier supply of younger second-hand stock in future years.
Current market conditions also remain positive for retailers, with used cars continuing to sell quickly and like-for-like retail prices broadly stable.
Car-buying intentions remain strong too, with seven in 10 consumers using Autotrader saying they plan to purchase a vehicle within the next six months.
Marc Palmer, head of strategy and insights at Autotrader, said: ‘What’s particularly encouraging is that growth isn’t confined to one part of the market.
‘New car registrations are recovering strongly but used car transactions are also increasing from what is already a very high base.
‘That tells us the overall automotive market is growing, rather than new car demand simply taking sales away from the used market.’
Palmer added that dealers had reasons to be optimistic heading into the closing months of the year.
He said: ‘New car buyers are benefiting from intense competition, attractive offers and greater consumer choice, while the used market continues to demonstrate its resilience despite an uneven supply picture.
‘With cars continuing to sell quickly, car-buying intent remaining robust and wider consumer confidence improving, there are genuine reasons to be positive about the outlook for the remainder of 2026.’