How GAP Insurance can help you sell used cars

The used car market has finally calmed down from the chaos of 2021-22, when supply shortages sent prices soaring and some models were changing hands for more than their original list price. In 2026, average used car values have settled at around £17,000-£17,300, and for the first time in years buyers are able to negotiate again rather than accepting whatever's on the windscreen sticker.

The used car market has finally calmed down from the chaos of 2021-22, when supply shortages sent prices soaring and some models were changing hands for more than their original list price. In 2026, average used car values have settled at around £17,000-£17,300, and for the first time in years buyers are able to negotiate again rather than accepting whatever's on the windscreen sticker.

But "settled" doesn't mean uniform. The market has split by segment. Older cars in the 10-15 year bracket are still climbing, up around 9% year-on-year, driven by strong demand and tightening supply as the "pandemic gap" in newer used stock starts to bite. At the same time, EVs and mid-range 3-year-old family cars and compact SUVs have softened considerably, as early adopters trade in and new EV prices keep falling. Some Ford Puma and Volkswagen T-Roc-style models from 2022-2023 are now noticeably cheaper than they were at their peak.

New cars aren't immune to this volatility either. Depreciation curves that used to be predictable have become segment-dependent, particularly for EVs, where residual values are still finding their level as the second-hand electric market matures.

How this can benefit car dealers

So where's the opportunity for dealers in a market that's this uneven? It's in the gap between what a written-off or stolen vehicle was insured for and what it now costs to replace one just like it.

If someone's car was stolen or written off recently, and their model happens to sit in one of the segments where prices have risen (like that 10-15 year old bracket), a standard GAP policy that only covers the original purchase price may leave them short of what they need to buy a like-for-like replacement. These are motivated buyers, and unlike most shoppers in 2026's more negotiation-friendly market, they aren't especially price-sensitive. They're focused on matching a specification.

Vehicle Replacement GAP Insurance is the more comprehensive version of this cover, and it's increasingly common. Rather than paying out a fixed amount based on the original invoice, it guarantees the policyholder a genuinely like-for-like car; same age, mileage, make and model, regardless of how the market has moved in the meantime. If the original vehicle was brand new, this level of cover provides a full new-car replacement; if it was used, the replacement has to match it exactly. As more owners insure EVs and hybrids, some GAP providers have also started offering battery health and range-specific add-ons, which is worth knowing if EVs make up a growing share of your forecourt.

How do you reach these consumers?

These buyers exist, but they don't announce themselves, so you need to be visible wherever they're searching for a specific make and model. Automotive Inventory Ads are one of the most effective routes, using lookalike audiences to reach people on Facebook and Instagram who've recently viewed similar-spec vehicles on your website or a competitor's.

Automotive Inventory Ads work from your live stock feed, automatically surfacing your vehicles to shoppers whose browsing history matches what you currently have on the forecourt. Because a GAP claimant has to find a genuine like-for-like match rather than simply "something similar," this kind of targeted, specification-led advertising tends to convert well.

Google Vehicle Ads are worth running alongside this, since they put your stock in front of people actively searching by make and model on Google. Traditional PPC still has a role too, whether that's bidding on specific make and model terms or broader ones like "used Ford cars."

It's also worth building relationships with local GAP insurance providers and brokers directly. A referral partnership can put you in front of claimants at the exact moment they're looking to replace their vehicle, well before they start searching online.

If you're looking to reach buyers as they search for specific makes and models, speak to the team at Autoweb Design, who can talk you through the best options for your dealership.