Used car values at BCA rose for the second month running, showing strong demand and stability in the current climate.

Prices reached £9,464 in July 2022; up by 2.9% or £268 compared to June 2022

Prices reached £9,464 in July 2022; up by 2.9% or £268 compared to June 2022. Performance against guide values rose to 97.7%, up marginally compared to June with sold volumes remaining broadly level with the previous month.

BCA said it indicated “impressive” market strength and stability given the ongoing cost-of-living squeeze and other pressures affecting the wider economy.

Its weekly figures also reveal that year-on-year comparative values have been remarkably stable over the past weeks.

But it warned that presentation remains key, with vehicles in Grade 1 and Grade 2 condition attracting significantly more attention from professional buyers.

UK COO Stuart Pearson commented: “July continued the emerging trends of previous months with strong levels of demand for younger, higher-grade vehicles, alongside sustained interest in sports and prestige models, with the particular focus on convertibles that you would expect to see at this time of year. Data from BCA Valuations provided further evidence that dealers remain laser-focused on vehicles that can be sold quickly, often buying to order and generating good retail churn despite the challenging economic conditions.”

Pearson added: “There has been a divide forming in the market with the shortage of ex-lease, rental and OEM stock ensuring resilient prices for one- to four-year-old vehicles, whilst at the lower end, some of the poorer condition part-exchange vehicles have seen prices drop more dramatically as dealers have concerns over potentially expensive preparation costs and delays in parts supply.”

Pearson also warned of the “ongoing and potentially long-term challenges” brought about by the pandemic, supply chain disruption and significant economic pressures – and stressed the need for remarketing solutions that “deliver the choice and efficiencies that businesses require”.