If you’ve walked your forecourt lately and felt like the "cheap and cheerful" stock is suddenly worth its weight in gold, you aren't imagining things. While the headlines usually focus on the latest EVs and shiny new plate changes, the real story of the February used car market is happening at the older end of the scale.
At Marsh Finance, we spend a lot of time looking at the numbers behind the deals. The latest data from Auto Trader’s February 2026 report shows a market that is surprisingly resilient, but the "growth" isn't spread evenly. Some sectors are flying, while others are feeling the squeeze of oversupply.
If you want to know where the margin is hiding right now, here is what the data is actually telling us.
Let’s get straight to the most eye-opening stat of the month: 10-15-year-old cars saw a price increase of 9.4% year-on-year.
Think about that for a second. In a market where overall prices moved by a tiny 0.2%, these older "affordable" cars are practically runaway successes. Why? It’s a classic case of supply and demand. Supply for these older, reliable runners is contracting, but the demand from budget-conscious buyers remains sky-high.
If you’ve got a tidy, high-mileage hatchback from 2011 or 2012 sitting in your "part-ex to clear" pile, it might be time to rethink its sticker price. These aren't just "filler" stock anymore; they are some of the fastest-appreciating assets on your lot.
We’ve heard the "death of diesel" story for years, but the February market didn't get the memo. Diesel prices actually rose by 3.4% year-on-year, and petrol followed with a solid 1.0% increase.
The reason is simple: "Market Health." Auto Trader uses this term to describe the ratio of supply versus demand. For petrol cars, demand is currently outpacing supply by about 5%, which is keeping those retail prices firm.
Interestingly, it’s the "fun" cars that are leading the charge as we head toward spring:
If you’re looking to refresh your stock for March, focusing on these body types - especially in petrol or diesel- seems like the safest bet for protecting your margins.
On the flip side of the coin, the electric vehicle (EV) market is having a bit of a reality check. EV prices fell by 1.2% in February alone, and they are down 6.9% compared to last year.
This isn't necessarily because people don't want them, new car registrations for EVs actually grew by 3%. The problem is supply. As more three-year-old lease returns hit the used market, the sheer volume of available electric stock is driving prices down.
For dealers, this means you have to be incredibly sharp on your turn times. The average car is selling in 27 days right now (one day faster than last year), but for EVs, you really can’t afford to let them sit. If an EV stays on your forecourt for 40 days, the market might have moved beneath it before you’ve even had a serious enquiry.
One of the most significant shifts we’re seeing is the rapid arrival of Chinese brands into the used car ecosystem. Brands like Chery, BYD, and JAECOO are no longer just "the new kids on the block"… they are becoming a serious part of the used stock mix.
In February, Chinese brands accounted for 1 in 10 cars under a year old on the market. Even more impressively, they are capturing 1 in 3 enquiries for plug-in hybrids (PHEVs).
What does this mean for you? It means your customers are becoming more brand-agnostic. They are looking for tech, warranty, and value for money. If you haven't started looking at these brands for your "nearly new" stock, you might be missing out on a massive chunk of consumer interest.
The February data shows that while the overall market is "stable," it's also highly fragmented. You could have two cars of the same age and mileage, one an EV and one a Diesel, and they are moving in completely opposite directions value-wise.
Here is the "Marsh Finance" view on how to play it:
The market is moving fast, with cars selling nearly a day sooner than this time last year. To make the most of it, you need a finance partner who can move just as quickly. Whether it’s getting a decision in minutes or offering flexible options for that 12-year-old hatch that just landed, we’re here to help you turn that stock into sales.
Become a Marsh Finance Dealer today!