2026 Will Reward Dealers With A Plan, Here’s What To Get Ready For Now

If 2025 felt busy, 2026 will feel sharper. Not necessarily harder, but less forgiving.

Auto Trader has been pretty direct about it: dealers without a plan will be punished. And when you look at the numbers, you can see why. The market is still active, but customers are quicker to switch, margins are easier to lose, and the EV story is getting messy.

Plan For A Busy Market, But Not An Easy One

There’s a lot of demand still in the system.

• SMMT says 2026 new car registrations are expected to rise 1% to around 2.032 million, with BEV share forecast at 28.2%.
• Auto Trader has also predicted the UK car market could hit 10 million total transactions in 2026, with used expected to rise about 3% to over 8 million.
• Auto Trader’s early January update says the used market entered 2026 with positive momentum, with 2025 used sales finishing 2% ahead of the year before.

So yes, people are buying.

But in 2026, the dealers who win are the ones who get basics right every day, stock, pricing, advert quality, speed of response, and finance clarity.

Build A Stock Plan Around Where Demand Really Is

In 2026, guessing stock mix will hurt.

Auto Trader’s outlook is clear: consumer intent is there, but ad quality and consistency will be key to success. That only works if you’re buying and retailing the right cars in the first place.

Older And “Affordable” Stock Will Stay Important

Budgets are still tight. Buyers might want a newer car, but many can’t stretch. That keeps demand for older, affordable cars strong and pricing supported.

Younger Used Stock Will Be More Competitive

As supply improves in some younger brackets, expect more competition on price and more “like-for-like” shopping.

That means you need a plan for:

• Which cars you are happy to price aggressively for speed
• Which cars you protect margin on
• Which cars you walk away from entirely

Expect More Payment-Led Shopping

A lot of customers now start with a monthly number rather than a brand.

That changes how you present cars online and in the showroom. It also changes what they see as “value”.

If your listing looks expensive, but the monthly is strong, and the explanation is clear, you still win the enquiry.

If your listing looks cheap, but the finance is confusing or slow, you lose the deal.

This is one reason Auto Trader is seeing strong consumer activity, but still warns dealers to plan carefully.

EV Demand Is Growing, But The Government’s Messaging Is A Mess

Here’s the bit that’s hard to ignore.

The Government is running big campaigns to encourage EV uptake. But it has also announced electric Vehicle Excise Duty (eVED), a pay-per-mile charge from April 2028, with 3p per mile for BEVs and 1.5p for PHEVs, on top of standard VED.

Auto Trader data suggests this has already shaken confidence, with reports that the new EV tax could put off a large share of buyers.

Our view at Marsh is simple. It’s a bit of a joke to push EVs hard while adding another tax layer. Drivers won’t be fooled, and uncertainty like this can slow adoption.

What This Means For Dealers In 2026

You’ll see more customers asking:

• “Should I wait?”
• “Will values drop again?”
• “Is the Government going to change the rules again?”

So your plan should include:

• A simple way to explain EV costs without making promises
• A used EV pricing strategy that’s reviewed often
• Clear comparisons against hybrid and petrol alternatives

Your Lead Handling Needs To Be Ruthless

In 2026, speed and clarity will beat cleverness.

If a customer enquires and you reply late, they’ll buy elsewhere. If your reply is vague, they’ll keep shopping. If your process is messy, they’ll lose confidence.

This is true whether leads come from Auto Trader, your website, WhatsApp, or phone.

A good 2026 plan includes:

• Targets for response time by channel
• A simple script for finance questions
• Consistent handover between sales and F&I

Treat Digital Retail Like The Front Door

Most buyers now decide if they trust you before they visit.

Auto Trader’s insight has been pushing the idea that retailers need to use better data and signals to understand high-intent buyers, and that advert quality still plays a huge role.

Your plan for 2026 should include:

• Cleaner photos, more consistent specs, fewer missing fields
• Pricing that makes sense in the first 5 seconds
• Clear finance examples, not hidden behind forms
• Strong review management and fast replies

Plan For Compliance And Customer Outcomes, Not Just Sales

This part matters more every year.

Dealers are expected to treat customers fairly and explain finance in a way they understand. If you get it wrong, it shows up later as complaints, cancellations, and poor outcomes.

In 2026, the best dealers won’t treat compliance as a box-tick. They’ll treat it as part of trust.

Build simple standards:

• APR and total payable shown clearly
• No “from” claims that don’t reflect reality
• Staff trained to spot vulnerability and slow things down when needed

Make Your Finance Offer Feel Simple And Safe

Finance will remain central to volume in 2026, because it turns “too expensive” into “possible”.

SMMT expects BEVs, PHEVs and hybrids to continue to grow in 2026. That means more buyers will need help understanding:

• Which finance option fits how they drive
• What they pay per month
• What happens if their situation changes

If you make finance feel complicated, customers delay decisions. If you make it feel clear, customers move.

Where Marsh Finance Helps Dealers In 2026

Marsh Finance is a UK lender that supports dealers with HP and PCP, including near-prime options where appropriate.

In 2026, we can support partners with:

• Fast, clear lending decisions that match how customers shop
• Help structuring deals that are sustainable, not stretched
• Plain-English finance explanations that support better customer outcomes

If 2026 is going to reward dealers with a plan, the finance piece needs to be part of that plan, not an afterthought.

Partner with Marsh Finance today!