Press Release
Used car market shifts towards older vehicles and BEVs as fleet stock remains in short supply reports Indicata
The profile of the UK used car market continues to evolve, with older vehicles accounting for a greater share of retailer stock and sales, while BEVs are increasing their presence in both supply and consumer demand, according to the latest analysis from Indicata.
- Demand for ex-fleet vehicles exceeds supply
- Fleets extending contracts adds to shortage of used 3-4-year-old cars
- Dealers rely on older vehicles to fill forecourts
- Used BEV demand and prices continue to rise
- Supply of sub-24-month-old cars exceeds demand
The profile of the UK used car market continues to evolve, with older vehicles accounting for a greater share of retailer stock and sales, while BEVs are increasing their presence in both supply and consumer demand, according to the latest analysis from Indicata.
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 nearly half (48.9%) of all used car stock in the UK, up from 47.9% in 2024. Meanwhile, the share of two-year-old and younger vehicles increased from 22.70% 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. Older vehicles are filling that gap, while the stock of sub-24-month-old cars remains strong,” said Dean Merritt, Indicata’s national retail strategy manager.
The data also highlights the continued transformation of the UK’s used car parc by fuel type. Battery electric vehicles (BEVs) have increased their share of dealer stock from 5.22% in 2024 to 7.95% in 2026, while their share of used car sales has risen even faster, from 5.11% to 8.63%.
A healthy retail demand for used electric vehicles continues to outpace supply which has resulted in prices rising in July and August by 2.7% which is a positive sign for the 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.
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.