Top News

Car dealers are coming under higher pressure to sell cars in 2026, with companies "having to work harder for every sale" in a blow for the industry. The UK has been hit with a spate of car dealer closures so far this year, with dealers explaining that the pressure on them has been "persistent".

Recent closures have piled the stress on dealers to finalise petrol, diesel and electric car deals, with customers more uncertain over purchases. The news comes just days after one of the UK's biggest second hand dealerships, CarGiant confirmed they would be closing later this month.

The almost 50-acre site in West London used to stock over 2,000 vehicles, but will close its doors for the final time on April 24.

Reacting to the news while speaking to Express.co.uk, James Hosking, managing director of AA Cars said: "The closure of another used car dealer underlines the level of pressure across the market right now, and the number of closures we're seeing reflects how persistent those pressures have become."

Iain Reid, global content director at Carwow admitted that the used car market itself remains strong, with almost 8 million transactions expected in the UK this year.

However, he accepted that dealers were now "navigating tough conditions such as Covid-era supply shortages to tighter margins and the shift to electric models. He also told Express.co.uk that dealers were now "working hard to adapt".

CarGiant is not the only firm facing issues, with Group 1 Automotive set to close 254 showrooms across the UK as part of a major restructuring programme.

Last year, Evans Halshaw confirmed the closure of some Ford dealerships, while high-end second hand firms such as GVE London and Targa Florio have also shut down in recent months.

James added: "This isn't about demand disappearing, but about a market that has become more competitive, more price-sensitive and less predictable. Dealers are having to be sharper on pricing, more disciplined on stock, and more efficient across their operations."

"This is less about dealers being unable to sell cars and more about how the dynamics of demand have shifted. There is still demand from buyers, but people are more cautious and more price-conscious than they were a few years ago, often taking longer to commit and placing greater emphasis on value.

"As a result, dealers are having to work harder for every sale, with tighter margins and increased competition. Stock that is well-priced and well-presented will still move, but anything out of line with market expectations can take longer to shift."