Whether you’re running a forecourt or an online showroom, it’s clear the used car market continues to present both challenges and opportunities. We’re seeing dealers finding it harder to source the right stock consistently and profitably, while navigating changes in supply, evolving customer expectations, and fiercer competition as dealerships get sharper with their data.
What if… you had something to help you source the right stock, at the best price, all in one place?
It’s no surprise that more dealers want better intelligence before they buy; having access to insights that reveal a vehicle’s real value, desirability, and risk, can make all the difference.
Later in this article we’ll explore a new tool built to do exactly that, and some other approaches that are helping dealers stay ahead this year. But first, we’ll cover what’s been happening in the used vehicle market and what to expect in 2026.
Mixed messages: Understanding the supply paradox
If the messaging around stock supply seems mixed, there’s a good reason; different market segments have been experiencing different realities simultaneously. While 2025 delivered strong transaction volumes, it also brought supply constraints in some areas, and surges in others.
Predicted drop in 5-7 year old vehicles in 20261
Fewer vehicles in the 3-5 year age bracket since 20191
Used vehicle transactions in 2025 (estimate)2
The supply squeeze
The toughest pressure has been in the 3-5-year age bracket, the traditional sweet spot for larger retailers. The root cause traces back to the 20-year low in new car registrations in 2022, due to chip shortages and supply-chain disruption. Looking into 2026, around 1.6 million fewer 3-5-year-old cars are predicted compared to 20191. Additionally, the supply squeeze will impact 5-7-year-old vehicles, with forecasts from Auto Trader suggesting the market won’t return to 2024 volumes in that age bracket for another decade.
The supply and demand surge
2025 reflections:
Last year marked the biggest used car market since 2019, with a 2% year-on-year increase in transactions2. Dealership stock levels also increased, with nearly-new cars rising by 10%3, while franchised sites and car supermarkets both reported an 11% uplift4. The used EV market was particularly strong with a 52% year-on-year increase in sales, outpacing demand growth of 28%5.
2026 outlook:
Rise in used EV sales in 20255
Increase in nearly new (<12 months old) stock3
Buyers plan to buy in next 6 months8
What this means for different types of dealers
Dealers relying on 3–5-year-old ICE stock still face tight supply and heavy competition. As those same challenges move into the 5-7-year-old bracket, dealers with more flexibility will be able to respond more proactively to the ongoing sourcing pressures. Franchised dealers with strong part-exchange flows are seeing stock levels improve, but independents and supermarkets focused on the traditional ‘sweet spot’ will continue to feel the squeeze.
Why every buying decision carries more weight
As the market becomes more segmented, getting sourcing right is more critical than ever. Margins remain tight, meaning there’s little room for error. Rising costs and changing interest rates are making buyers more price-conscious and shifting the stock ‘sweet spot’. In this environment, confidence in every purchase is essential to protect both profitability and stock turn.
Making smarter decisions with better insights
One area where dealers can find an edge is in how they assess vehicles before committing to purchase. Having detailed, reliable vehicle intelligence upfront can make the difference between a profitable stock turn and a costly mistake.
Vehicle Vitals is designed specifically for this challenge. Launching soon, it’s a new tool built directly into ClickDMS that gives you comprehensive vehicle insights before you buy; helping you make more confident sourcing decisions. It uses Autotrader’s trusted insights and vehicle data to help source the best stock for your business.
Vehicle Vitals provides instant access to:
- Full vehicle history and background checks
- Current vehicle valuations
- Demand and pricing insights
Having access to this vital information, all in one place, will help you quickly understand which vehicles are selling fastest, which could potentially lose or gain value over time, and where the biggest margin and profit opportunities are.
For more information about Vehicle Vitals, you can register your interest here.
How different approaches are helping dealers
Here’s what we’re observing from dealers who are successfully navigating the current market conditions:
Embracing flexibility on stock profiles
Dealers who’ve broadened their age ranges are finding new opportunities; the key is adapting to where the increases in supply and demand are.
Prioritising stock turn over margin
Focusing on volume and turnover is proving more profitable for some dealers, rather than holding out for higher margins on slower-moving stock, especially with rising holding costs.
Leveraging intelligence and data
Comprehensive vehicle history checks, valuations, and pricing insights can mitigate costly mistakes. Market intelligence also reveals opportunities where demand exceeds supply, helping dealers find profitable niches in competitive segments.
Building diverse sourcing channels
Multiple reliable sources (from direct purchases to trusted auction partners) can provide better access to stock at competitive prices. Strong relationships with sources are proving valuable in a tight market.
Staying responsive to customer preferences
Regular reviews of enquiry data and sales patterns ensure you’re stocking what customers want today. Buyer priorities around affordability and running costs continue to evolve, so staying close to these signals helps avoid costly stock-demand mismatches.
Tapping into tech partners and expert guidance
Working with industry specialists, platform providers, and trusted advisors can uncover smarter sourcing routes you may not see day to day. From identifying under-valued channels to streamlining processes and spotting market shifts sooner, the right partners help remove guesswork – and reduce costly stock headaches.
Looking ahead
The view for 2026 is a cautiously optimistic one, balancing ongoing supply challenges with positive demand dynamics. Segmentation will persist, meaning dealers who adapt their stock mix to market conditions and invest in stronger sourcing insight will find more opportunities than those waiting for conditions to return to normal.
Success in 2026 will centre on flexibility, diverse sourcing, data-led decisions, and willingness to evolve with emerging trends. Whether exploring new stock profiles, refining sourcing approaches, or upgrading buying tools, significant opportunity exists for dealers who stay agile.
If you’d like to learn more about how Vehicle Vitals can support your stock sourcing process, register your interest here.
1 1.6 million (39%) fewer 3-5-year-old vehicles compared to 2019: Auto Trader
2 2% year-on-year increase in transactions: Auto Trader
3 Nearly new cars rose 10%: Auto Trader
4 Franchised sites and car supermarkets saw inventory rise 11%: Motor Finance Online
5 EVs 52% YoY increase in sales, outpacing demand growth of 28%: Auto Trader
6 Predicted 8 million transactions in 2026: Auto Trader
7 Predicted 1 in 5 used cars under 5 yrs old being electric: AM Online
8 74% of buyers expecting to purchase within 6 months: Auto Trader
9 18% YoY increase in loan volume (CarMoney): Motor Trade News
