Stock, strategy and supply: Staying ahead of the curve
The backdrop for the automotive industry is evolving, and retailers are feeling it from every angle. With supply tightening, demand holding firm, and the mix of vehicles changing fast, retailers face a very different market to the one they’ve known before.
This article looks at
Key market trends
How 2025 has influenced supply and demand
What retailers need to focus on when planning their stock for 2026
To understand where the market is heading, we first need to look at how 2025 wrapped up. 2025 marked the strongest year for car sales, both new and used since 2019. Transactions were up +2% YoY¹ while new car sales increased by +3.5% YoY². Whilst this indicates a healthy market, there are some challenges that retailers will need to navigate.
One of the clearest shifts in recent years has been the rapid growth of electric vehicles. Used EV advert views rose by +28% and sales increased by +46% in 2025³. By next year, 1 in 5 vehicles under five years old is expected to be electric, while 1 in 10 aged between five to seven years will also be an EV⁴. This change in the market’s stock mix reflects evolving consumer demand, regulatory pressure, and the increased availability of electric models across a wider price range.
At the same time, the used market continues to feel the impact of constrained supply. What began as a temporary disruption during Covid has become a structural shift. Between 2020 and 2023, the volume of new cars entering the UK market fell by 40%⁵, placing significant strain on future vehicle availability. The impact of this decline has been steadily working its way into the used market and is now reaching its peak. In fact, the supply of 5-7-year-old vehicles is expected to drop by 1.3 million in 2026⁶. Franchise dealers were impacted earlier and, in some cases, more harshly by these supply challenges. This was due to their reliance on newer inventory and their need to operate within strict brand standards and manufacturing requirements. These limitations made it difficult for some to adjust and added to the supply shortage. However, some dealers were able to adapt effectively despite these constraints.
Importantly, demand from consumers isn’t dropping. 7 in 10 people on Autotrader say they’re planning to buy within the next 6 months⁷.
The challenge isn’t selling stock, it’s replacing it quickly enough to avoid empty forecourts. Retailers who rely on familiar vehicle profiles may find stock turning faster than it can be replaced, simply because the right vehicles are becoming hard to source.
Another factor adding pressure to used car supply is the growing competition from large car-buying supermarkets. Their presence has created alternative routes for vehicles to enter the market other than just traditional retailer trade-ins. As a result, retailers are now competing more actively for the same pool of vehicles that they would have once naturally ended up on their forecourts as trade-ins.
This change brings both challenge and opportunity. Independents usually have more freedom to change their stock profile and react more quickly. That flexibility will matter a lot in 2026. For many retailers this means rethinking how they source vehicles and find new ways to keep forecourts stocked, such as widening the types of vehicles they buy or targeting a new segment of the market. Ultimately, the retailers who perform best in 2026 will be those who treat sourcing as a key part of their strategy, using data and insights to understand demand, act early, and keep their forecourts stocked.
Autotrader’s data, insights and tools can help retailers make informed decisions, refine their stock mix, and attract more buyers.
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Market insight provides a view of live market trends so you can see how changes in supply, demand, and pricing will impact your business. Helping you to optimise your current and future forecourt through smarter pricing and sourcing decisions.
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Using Autotrader’s retail check tools like live and trended valuations shows how prices are moving over time.
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Retail rating highlights how competitively a vehicle is priced compared to the wider market.
Together with the retail back calculator, retailers can work backwards from a target margin to build a stock mix that aligns with demand, protects profits and attracts buyers. This helps create a more balanced stock profile, better margins, and helps vehicles sell faster
At Autotrader, we’re committed to helping your business succeed, because your success is our success.
Our partnerships team are on hand to help maximise visibility and get more eyes on your vehicles. You can also access our best practice guide here.
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¹Autotrader UCT Forecast 2025vs.DVLA UCTs 2024
²SMMT New Car Registrations 2025vs.2024
³Autotrader SMMT Jan 25 - Dec 25
⁴Autotrader UCT Forecast
⁵SMMT New Car Registrations Jan 2025 - Dec 2025
⁶Autotrader UCT Forecast
⁷Autotrader on-site survey Dec 2025
