Used car values saw an uplift in January 2023 as buyer appetite exceeded expectations, but the used EV market remained volatile.

By the end of January, most used car sectors were seeing positive activity

Values averaged £8,400 at BCA in January 2023, up by £135 or 1.6% compared to December 2022, while sold volumes increased significantly month-on-month and performance against guide price lifted.

Anecdotal reports from BCA customers indicate healthy retail demand for both used cars and LCVs in January and this was reflected in the wholesale sector. Supply was balanced with the increasing demand, resulting in a lift in value as the month progressed. The strength seen in the budget sector pre-Christmas spread upwards throughout the month and by the close of the month, most sectors were seeing positive activity.

BCA UK COO Stuart Pearson said the unexpected lift to the January market was very welcome after the challenges of the last quarter.

He added: “Most sectors strengthened as the month progressed, however EV continues to be volatile as buyers and sellers grapple with finding realistic values for some models that are returning in more significant volumes. It therefore remains vital that the latest pricing intelligence is utilised to support decisions in this area.”

Pearson also pointed to slightly more positive economic reports over recent weeks, with indications of a fall in inflation and the potential for energy costs to stabilise later in 2023. The Society of Motor Manufacturers and Traders (SMMT) also continues to report growth in the UK new car market – while also noting that volumes remain well behind pre-pandemic levels.

“Whilst new cars are becoming more readily available, there is every expectation that used car values will remain resilient for the next few months,” Pearson continued.