The UK’s used car market continues to evolve, as older vehicles account for a greater share of retailer stock and sales. In addition, battery-electric vehicles (BEVs) are increasing their presence in both supply and consumer demand.
The latest analysis of the used car market from Indicata shows that stocks of three to four-year-old ex-fleet vehicles have also fallen significantly from 25.5% in August 2024 to 22.6% in August 2026 as demand for this age and type of vehicle increases, forcing dealers to increasingly rely on older vehicles to maintain stock levels.
Indicata’s August Market Watch data shows that vehicles aged five years and older now represent 48.9% of all used car stock in the UK. This is up from 47.9% in 2024. Meanwhile, the share of two-year-old and younger vehicles increased from 22.7% in August 2024 to 25.73% in August 2026 with supply continuing to exceed demand.
“We’re still seeing a reduced volume of three to four-year-old cars coming into the market, which has been exacerbated by fleets extending contracts to four and five years,” commented Dean Merritt, Indicata’s national retail strategy manager. “Older vehicles are filling that gap, while the stock of sub-24-month-old cars remains strong,”
BEV demand increases in used car market
The data also highlights the continued transformation of the UK’s used car parc by fuel type. BEVs have increased their share of dealer stock from 5.2% in 2024 to 7.9% in 2026, while their share of used car sales has risen even faster, from 5.1% to 8.6%.
A healthy retail demand for used electric vehicles continues to outpace supply which has resulted in a 2.7% rise in prices between July and August. This is a positive sign for the used car market. However, used BEV prices remain 21.1% lower than in 2024.
Mild hybrid electric vehicles (MHEVs) have also recorded significant growth, increasing from 8.9% to 12.8% of stock and from 8.5% to 12.0% of sales over the same period.
In contrast, diesel continues its long-term decline with sales falling to 23.1% in August 2026 against a backdrop of 26.9% of stock.
Petrol remains the dominant fuel type, accounting for 41.2% of used stock and 43.9% of sales, although its market share has gradually reduced as buyers increasingly consider electrified alternatives.
The aftermarket view
Looking ahead, Indicata expects the used car market to remain characterised by increased supplies of sub-24-month-old cars, continued strength in older stock, and ongoing growth in BEV sales between now and the year end.
The shortage of three to four-year-old vehicles is likely to continue for the foreseeable future, continuing to reshape stock profiles across dealer forecourts nationwide.
This shortage suggests that the aftermarket is going to have an increasing role to play in keeping the UK automotive market moving. As the number of older cars on the roads increase, so to do the requirements for servicing, maintenance and repair.
In addition, the continued age rise will also fuel MOT numbers, increasing a need for a review of the MOT pricing cap.
With a rise in demand, if not supply, for electric vehicles, there is also a need for workshops to develop strategies to deal with such models. While their maintenance needs may be less intensive, they still require servicing, and MOT work as well.
The used car market is an important driver for the industry, and judging by the latest analysis, will be an important driver for the aftermarket for many years to come.
