Summary
The U.K. used-car market picked up in January after the usual December lull, with notably stronger activity in pre-registrations and electric vehicles (EVs). While buyer interest improved, expanding EV supply and a surge of nearly new, pre-registered cars are putting fresh pressure on pricing and stock choices as 2026 gets underway.
Key metrics
- +10.5% month-on-month increase in total used-car adverts.
- +24.3% in pre-registered listings, reflecting year-end target pushes and ZEV compliance efforts.
- +24.8% in EV advert volumes; EVs’ share of advertised stock rose by 0.8 pp.
- £489 drop in average EV prices in January (about 2%), driven by older/lower-priced EVs entering stock.
- Average days to sale increased in line with seasonal patterns; EVs continued to sell faster than the market average.
What’s driving the shifts
- Pre-registrations: A December push by manufacturers and dealers to hit volume and ZEV targets (the industry ended 2025 at 23.4% EV share vs. a 28% mandate) led to an influx of nearly new, low-mileage cars listed in January.
- EV supply mix: Higher volumes and a greater share of older/lower-priced EVs broadened buyer choice but weighed on average advertised prices.
Implications for retailers
- Pricing discipline: With more nearly new and lower-priced EVs competing for attention, sharp pricing is essential to protect margins and turn rates.
- Stock selection: Choosing the right EV models and trims matters as the mix increasingly influences both sell speed and headline pricing metrics.
- Seasonality context: Longer days to sale appear seasonal rather than demand-driven; EVs’ faster turnover supports confidence in stocking, provided prices are aligned.
Outlook
Expect continued focus on the interplay between elevated pre-registration activity and EV price trends into spring. If the current stock mix persists—especially with more older or lower-priced EVs—average advertised prices may remain under pressure even as demand for the right vehicles stays resilient.
