Why Are Used Car Prices Still Rising in 2026? The Real Reason Behind the Shortage
Why the used car market has changed, why prices are still rising, and what it means if you're buying your next car.
If you've been looking for a used car this year and found yourself thinking, "I'm sure this would have been cheaper a year ago," you're not imagining it.
At Simon Shield Cars in Great Bricett, near Ipswich, we've been asked the same question almost every day throughout 2026:
"Why have used car prices gone up so much?"
The simple answer is that the UK is experiencing one of the biggest shortages of quality used cars we've seen in decades. It's not because dealers have suddenly decided to charge more. It's because there are genuinely fewer cars available.
Understanding why can help you make a much more informed decision when buying your next car.
Why are used car prices increasing?
To understand today's market, we need to go back to 2020 and 2021.
During the COVID-19 pandemic, new car registrations fell dramatically. Showrooms closed during lockdowns, manufacturers struggled with global semiconductor shortages, and supply chains across the world were severely disrupted.
The result?
Millions fewer new cars entered the UK market than normal.
That might have seemed like a temporary problem at the time, but every new car eventually becomes a used car.
Fast forward five or six years, and those "missing" new cars have become today's "missing" used cars.
Industry analysis, including data from the Society of Motor Manufacturers and Traders (SMMT) and leading automotive market analysts, suggests the UK now has around 1.8 million fewer 3–5-year-old used cars than would normally be expected. Forecasts also indicate supplies of 5–6-year-old vehicles are likely to tighten further through 2026 and into 2027.
It's one of the biggest structural changes the used car market has experienced in recent history.
The shortage isn't just affecting newer used cars
Many buyers assume they can simply buy something a little older instead.
Unfortunately, that's not how markets work.
When there aren't enough 3–5-year-old cars available, buyers naturally begin looking at six, seven, eight and even ten-year-old vehicles instead.
That increased demand pushes prices higher across multiple age groups.
Even vehicles in the 10–15-year-old bracket have continued to appreciate, with industry data showing around 8.5% growth over the past year.
In other words, the shortage doesn't stay in one part of the market.
It spreads.
What we're seeing every day in Suffolk
At Simon Shield Cars, we spend every day buying, valuing and preparing used cars, so we see these changes long before most buyers notice them.
Over the past year we've seen:
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More customers keeping their current cars for longer.
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Nearly-new, low mileage cars selling much faster than they did previously.
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Buyers travelling much further across Suffolk, Essex, Norfolk and beyond to secure the right vehicle.
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Greater demand for cars with full service history and known ownership.
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Quality stock becoming increasingly difficult to replace once it's sold.
These aren't headlines we've read.
They're conversations we're having with customers every single week.
Why some 2020 and 2021 cars have surprisingly low mileage
One thing that often catches buyers out is mileage.
Many vehicles first registered during lockdown spent months sitting on driveways rather than commuting every day.
That means it's quite normal to find a 2020 or 2021 car with considerably lower mileage than you might expect.
Rather than judging a car purely by its registration year, it's worth looking at:
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Service history
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MOT history
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Previous ownership
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Overall condition
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How consistently it has been maintained
Those factors often tell you far more about a vehicle than the odometer alone.
Why where your dealer buys cars matters more than ever
As supply tightens, dealers have to compete harder for quality stock.
Many rely heavily on vehicle auctions, bidding against hundreds of other dealers for the same cars.
There's nothing inherently wrong with auction vehicles, but you're often relying on limited information about how that car has been cared for throughout its life.
At Simon Shield Cars, we've chosen a different approach since we established the business in 1996.
We simply don't buy from vehicle auctions.
Instead, every car comes directly from its previous owner or as a carefully selected part exchange.
That means we can ask questions.
We can understand how the vehicle has been maintained.
We often know exactly why it's being sold.
We can see how it's been looked after before it even reaches our forecourt.
For us, that's always been far more valuable than simply buying the cheapest car available.
The current shortage hasn't changed the way we buy cars.
If anything, it's reinforced why we've always believed this approach is the right one.
Is now a bad time to buy a used car?
Not necessarily.
Trying to wait for prices to suddenly collapse could mean waiting a long time.
Most industry forecasts suggest the supply shortage is likely to continue well into 2027, meaning prices are expected to remain relatively firm.
Instead of trying to perfectly time the market, it's often better to focus on buying the right car.
Look for:
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Full service history
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Genuine ownership history
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Good overall condition
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Evidence of careful maintenance
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A dealer who can confidently explain where the car came from
A well-maintained car with a known history is usually a better investment than chasing the very cheapest price.
Frequently Asked Questions
Why are used car prices still rising in 2026?
The biggest reason is supply. Far fewer new cars were built and registered during 2020 and 2021 because of lockdowns and global supply chain disruption. Those missing vehicles should now be entering the used market, but they simply aren't there.
Will used car prices fall soon?
Current industry forecasts suggest supply will remain tight throughout 2026 and into 2027. While individual vehicles will always fluctuate in value, experts generally expect prices to remain relatively strong until supply improves.
Why do some 2021 cars have very low mileage?
Many spent long periods off the road during lockdown, meaning they've covered fewer miles than previous generations of similar-aged vehicles.
Should I avoid buying auction cars?
Not necessarily. Many good cars pass through auctions. However, buying from a dealer who knows exactly where a car has come from, understands its ownership history and has carefully selected it can provide additional peace of mind.
Is it better to buy locally?
Buying from a trusted local dealer often means you can ask questions, build a relationship and understand the history behind the vehicle you're buying. That knowledge can be just as valuable as the specification on the dashboard.
About Simon Shield Cars
Established in 1996, Simon Shield Cars is an award-winning independent used car dealership based in Great Bricett, near Ipswich, Suffolk.
Unlike many dealerships, we don't rely on vehicle auctions. Every car we sell is sourced directly from previous owners or as carefully selected part exchanges, allowing us to understand each vehicle's story before we offer it for sale.
With hundreds of verified five-star customer reviews and nearly three decades of experience, we've built our reputation on honesty, transparency and helping people buy the right car, not simply the next car.
Whether you're ready to buy today or you're simply looking for honest advice about the current used car market, you're always welcome to get in touch or visit us for a chat.
Browse our current stock, read more about our approach to buying cars, or visit us in Great Bricett near Ipswich, we're always happy to help, whether you buy from us or not.
Last updated: August 2026