The used car market is plagued by supply shortages. It’s a problem that started rearing its head during the pandemic, and the sector is struggling to recover even five years on.
In search of greater flexibility and better value, many consumers and businesses are turning to alternative marketplaces. From digital platforms to browsing nearly new stock and ownership models, these new routes are quickly reshaping the way that we approach buying a second-hand car.
Why Are Used Car Prices Still So High?
Supply is one of the most significant challenges. As of 2025, there were around 1.6 million fewer 3- to 5-year-old cars compared to levels six years ago. The supply gap stems from production declines and specifically semiconductor shortages that stunted the registrations of new vehicles between 2020 and 2022.
As these missing vehicles fail to enter the used market, competition for high-quality stock is still fierce. For a few years, valuations have been elevated across the board.
Turning to Digital Marketplaces
Car enthusiasts have turned to online car-buying platforms. Digital marketplaces offer transparency and more competitive pricing, especially when independent sellers price for a quick sale. They also provide a broader range of choice in most areas, especially for those willing to travel to view the right car.
Used car transactions exceeded 7.24 million in 2023, and they’re set to surpass 8 million this year. Despite economic pressures felt across the nation, the market still demonstrates robust and consistent demand.
To meet this need, both traditional channels and digital car auctions continue to grow in importance. They provide a more direct route for consumers to find value, even when competition is high.
Why Alternative Ownership Models are Beneficial
Affordability pressures and the rising cost of factory-fresh vehicles are pushing both private buyers and businesses towards nearly new alternatives. These are cars typically under 12 months old, many of which have very few miles on the clock. They help buyers to benefit from all the latest features and specifications while enjoying a lower upfront cost – and avoiding the bite of depreciation. Additionally, subscription or flexible ownership models are gaining traction for buyers who prefer fixed monthly costs over long-term debt.
For savvy business owners and individuals, buying lightly used vehicles through car auctions is becoming a primary strategy. These platforms release well-maintained cars and ex-fleet vehicles in predictable cycles, often at prices significantly lower than you’d find in a showroom.
Preparing for the Pressures 2026 Brings
Finally, while used car sales have grown overall, specific segments are seeing extreme price movements. For example, demand for older, more affordable vehicles is still sky-high, with prices in this bracket rising steeply year on year.
Simultaneously, the availability of used electric vehicles (EVs) has surged. Used EV sales increased by over 50% in 2025, and they are currently the fastest-selling vehicle (by fuel type) on the market.
But for anyone willing to adapt, 2026 offers opportunities to find value. It’s time to move away from traditional supply chains and embrace these new, data-driven marketplaces.
