Average values remained reasonably consistent for the third month in a row, according to latest data from BCA.

The ongoing shortage of 3- to 4-year-old product continues to be a key factor in used car values

Its new figures show an overall average value of £8,255 in June, down 1.7% month on month compared to May’s £8,403 and 10.2% from June 2022’s £9,196.

BCA added that the mix of vehicles continues to heavily influence the overall average value while, unsurprisingly, the shortage of genuine 3- to 4-year-old product continues to be a key factor. As a result, car supermarkets are competing strongly for the best examples.

Demand has strengthened for the best-quality stock, in line with the emerging trend from recent weeks, and there is increased competition for vehicles in Grade 1 and 2 condition, particularly for late-plate, low-mileage examples, which remain in short supply. But the gap between the best and worst condition vehicles continues to widen and values on poorer-quality stock require close attention.

BCA UK COO Stuart Pearson commented: “Given that economic conditions have shown little improvement over recent months, with inflation remaining stubbornly high despite rising interest rates, we’ve seen strong attendance and competitive bidding across our online sales during the month.”

He added: “There is definitely a widening gap between the price performance of the best and worst condition vehicles and we’re working closely with sellers to ensure that pricing expectations are realistic, as this has shifted fairly quickly during the month.

“The shortage of vehicles in the 3- to 4-year sector is fuelling some really strong activity. However, the pricing expectations on some of the older, more damaged stock requires very close attention to ensure that first time sales are achieved.”

Pearson closed: “Whilst we are continuing to see a steady increase in volume reaching our remarketing network, the market is far from being saturated. This should ensure some stability around values, even with the continuing challenges around the economy and the cost-of-living pressures.”