Average used car values at BCA rose 9.8% month-on-month in January, spelling an end to the downturn seen in the last quarter of 2023.

BCA has reported the first monthly rise in average UK used car values since last October as buyers competed strongly for stock

Values at the auction and remarketing specialist improved by £679 in January compared to December – marking the first monthly rise in average UK used car values since last October as buyers competed strongly for stock.

Sold volume also increased significantly compared to December – in line with seasonal trends – and the final full week of January recorded the highest weekly volume sold at BCA in nearly a year.

Performance against guide price improved significantly as the month progressed and stock churn improved.

BCA’s figures build on industry evidence of a return to stability following a period of volatility. Data published by Cap HPI for January revealed used values at the three-year/60,000-mile point stabilised after the 10.5% drop seen over Q4 2023. Cap said the drop was the result of a ‘perfect storm’ of heavier supply, lower demand, high used car prices and lower-than-market values for fleet companies’ residual values on stock returning to the market.

BCA’s chief operating officer Stuart Pearson commented: “We are pleased to report a very positive start to 2024 following a rather testing time for the wider used car sector as last year drew to a close. Used car values saw a significant uplift in January at BCA, with some of the most competitive bidding that we’ve seen for months.  I think it’s fair to say that many were caught out by the buoyant market that we’ve experienced, but it’s been great to see some confidence back in our customers.”

He added: “With a number of broader economic factors adding to consumer confidence, along with the pricing realignment that took place across the last quarter, there’s no surprise that conversion rates have lifted and we’ve seen stock churn increase dramatically.”

But BCA has warned there could be see some pressure on used values in the coming weeks due to new vehicle discounts being promoted in the run-up to the March plate change.

“In the short term, it feels like it’s going to be a very seasonal February, with supply and demand well-matched, driving strong but stable pricing, which is definitely a welcome relief after some of the volatility of last year.”