Higher consumer confidence seen as key to used car market growth in 2026

Stronger consumer confidence would deliver the biggest boost to the UK used car market in 2026, according to December’s Startline Used Car Tracker. Almost six in 10 dealers (57%) said improved sentiment among buyers would most help market prospects next year.

The research also found that 52% of dealers want better availability of motor finance, while half (50%) believe a general improvement in economic conditions would provide meaningful support. A further 45% highlighted the need for better stock supply, an issue that has challenged the sector since the pandemic.

Dealers also pointed to specific policy and structural factors they believe could strengthen performance in the coming year. More than four in 10 (42%) called for direct government assistance to support buyers of used electric vehicles, while 30% said a loosening of Zero Emission Vehicle (ZEV) Mandate targets would help. A smaller proportion cited improved staff availability (17%) and lower overheads (10%) as potential tailwinds.

Paul Burgess, CEO at Startline Motor Finance, said the results underline the pressures many consumers continue to face.

“It’s unsurprising to see consumer confidence top these results. While the situation is now relatively stable, people have seen their personal finances come under huge pressure since the pandemic and many remain worried about future economic shocks,” he said.

Burgess added that concerns about finance and stock availability continue to shape dealer sentiment. “The high score for motor finance availability probably reflects concerns about this area during recent months because of the FCA commission redress scheme, while many would like to finally see improvements around the longstanding issue of poor stock supply,” he explained.

He said the call for government support for used EV buyers signals a desire to accelerate the maturing electric market. “It’s especially interesting to see so many wanting direct government support for the used electric car market. The grants made available for the new car market appear to have been relatively successful and to dealers, similar help for the used sector perhaps seems the obvious next step.”

The Startline Used Car Tracker, launched in April 2022, is produced monthly by APD Global Research on behalf of Startline Motor Finance. The latest wave questioned 300 consumers and 60 dealers, gathering insights into buying intentions, market challenges and attitudes toward fuel types and online retailing.