Used car values at BCA lifted in October, despite the price guides declaring the largest monthly downward move in more than 10 years.

BCA said the rise in October was due to an improving mix of product

Values at BCA rose £135 to £7,397 last month; up 1.9% alongside reports from Cap HPI of a 4.2% decline across the board.

BCA said the rise was due to an improving mix of product, but added that it followed a four-month run of declining values and that the market remains under significant pressure.

Stuart Pearson, BCA chief operating officer, commented: “Our buyer customers tell us that the retail used car market continues to be very tough. Movements in values have further been exacerbated by improving new car supply, along with the re-emergence of new car discounting and manufacturer support that has been virtually extinct since the start of the pandemic. It therefore shouldn’t be surprising that we’re experiencing some realignment of used values following the inflated prices that have existed for the last three years.”

He added that tough conditions over the last few years had led to “greater rigour around used vehicle stocking” which means that even with the value movements that the market is experiencing, sellers and buyers are finding a way to transact, “albeit there is definitely some pain being taken”.

Buyers continue to remain “extremely selective and condition sensitive” according to Pearson and he warned that the market faces another challenging month in November, but “there is demand as long as pricing is realistic and in line with market sentiment”.

Pearson closed: “These are undoubtedly economically trying times and navigating the next few months will require some caution as many are expecting values to find a new level before the end of the year.”