Data reveals strong start for the used car market in 2026

New analysis from NextGear Capital, part of Cox Automotive, identifies early momentum in the UK’s used car market for 2026. The analysis of dealer activity between January and February 2026 revealed that dealers across the UK increased both the number of vehicles on their plans and their credit limits.

Between January and February 2026, average credit limits increased by 28% compared with the same period in 2025, as independent dealers saw the largest increase of 27%. Franchised retailers also saw a 21% increase, well above the modest rate of growth recorded between 2024 and 2025 (5%). In addition, the number of vehicles on dealers’ plans increased by 11.1% year-on-year.

Chris Moore, Head of Credit and Customer Operations at NextGear Capital, comments, “Credit limits remain a key performance indicator of market health, as they reflect both dealer demand for funding and funder confidence in risk exposure. We undertake extensive analysis when making decisions to increase a customer’s credit limit. Therefore, sustained growth in credit availability points to improving credit profiles, stronger dealer performance and increased confidence in the resilience of the used market.”

One standout trend between January and February was a significant uptick in electric vehicle (EV) and hybrid funding. Dealers funded 807 EVs and 1,011 hybrid vehicles in this period, which represents a 157% and 77% increase, respectively.

Moore continues, “The increase in alternative fuelled vehicles funded this year is one of the largest we’ve seen. By comparison, growth during the same period in 2025 was only 36%. With more hybrids and EVs entering the used car market, dealers are clearly becoming more confident in stocking these vehicles.”

Stock turn rates remained consistent year-on-year, with no change in the average number of days on plan between early 2025 and early 2026. This reflects typical seasonal trends, with the opening months of the year often quieter as the market gears up for increased activity in spring.

The average cost of cars funded through NextGear Capital between January and February 2026 reached £11,018, 4.6% higher than the equivalent period in 2025. This upward movement reflects both the rising price of used cars and dealers’ increasing willingness to fund higher-value stock.