New car registrations, September 2026: the strongest September since 2017

This article is for car dealers, motor traders and garages who want to know what the latest registration figures mean for their stock and cash flow. September, with the new 76 plate, is one of the two biggest months of the year, so its figures say a lot about demand. Below we set out the numbers and the funding options for the motor trade. Smart Funding Solutions is a broker, not a lender: we compare whole-of-market options across 300+ lenders, arranging funding from £10,000 to £20 million.

01The headline figures for September 2026

According to preliminary Society of Motor Manufacturers and Traders (SMMT) figures, reported by Electrive on 2 October 2026:

• 350,518 new cars were registered, up 12.1% on September 2025 and the strongest September since 2017.
• Battery electric cars reached a record 99,199, up 36.3%, a 28.3% share of the market.
• Plug-in hybrids took 17% of the market, up 55.7%, their strongest month on record.
• Hybrids fell 4.2% to 45,838.

Over the first nine months of 2026, battery electric registrations reached 454,945, up 30.2%, a 26.2% share against 20.2% at the same point in 2025. As Auto Express reported, the Jaecoo 7 was September's best seller with around 10,800 registrations.

02The ZEV mandate gap

The zero emission vehicle (ZEV) mandate requires battery electric cars to make up 33% of manufacturers' new car sales in 2026. The SMMT says reaching that would take about 265,000 more battery electric registrations in the final quarter alone, based on a forecast market of 2.183 million cars.

Vans are further behind. Battery electric van registrations hit a record 4,832 in September, up 13.4%, but that was a 9.6% share, and 10.8% for the year so far, against a 24% target.

Mike Hawes, SMMT chief executive, said "September's record EV performance is a major achievement" and that "high fuel prices are also undoubtedly giving more consumers reason to consider going electric". But he added that "uptake remains behind mandated targets and, whilst flexibilities help, the UK still has the world's toughest targets and highest energy costs."

03What it means for dealers

A strong market is good for dealers, but the shift to electric changes the business. Electric cars cost more to stock, manufacturers are offering incentives to hit their targets, and buyers increasingly expect charging on site. Used electric cars need specialist checks, and their values can move quickly. All of this ties up more cash in stock and premises.

With the final quarter set to be busy as manufacturers push towards their targets, dealers who have their stocking and working capital in place can take advantage of the deals on offer. Independent and used car dealers face the same question in a different form: how much cash to tie up in electric stock while prices and demand settle.

04Funding options for the motor trade

• Stock finance funds the cars on your forecourt, repaid as each one sells.
• Working capital loans cover preparation, marketing and wages.
• EV charging finance spreads the cost of chargers for your site.
• Commercial mortgages help you buy or refinance a showroom or workshop.

Our motor trade finance page explains how lenders view dealers, and there is a dedicated page for garages and MOT centres. Business buyers can see our pages on business electric car finance and vehicle and fleet finance.

05What lenders look at for dealers

Stocking lenders look at how quickly your stock turns, the mix of new and used, petrol, hybrid and electric vehicles, and how well you control your stock, including regular audits. They will want to know where your cars come from, whether you hold manufacturer franchises and how you sell, on the forecourt, online or both. Many set limits on how long a car can be funded before it must be paid off, so a dealer with a fast turn and accurate stock records is easier to fund. For premises and chargers, lenders look at your trading accounts and the value of any property you own.

06How to compare your options

1. Work out how much stock you want to carry through the final quarter and how fast it turns.
2. Decide whether you need stocking, working capital or investment in premises and chargers.
3. Have your latest accounts, stock list and bank statements ready.
4. Use Instant Quotes to see your lender matches instantly, with no credit check.
5. Compare offers on total cost, including any charges for slow-moving stock.

The market is growing and changing fast. Get your Instant Quotes to see which lenders could back your motor trade business. Lenders make every decision, and all finance is subject to status.