Used car values remained steady at BCA in February with just a 0.4% fall.

Values at BCA averaged £7,564, down by 0.4% or £33 compared to January

Values averaged £7,564, down by £33 compared to January and still 9.4% ahead of the December 2023 low point. Sold volume improved considerably as buyer appetite for stock remained high and sales conversion improved by several percentage points. Performance against guide price also improved versus January.

BCA said buyer engagement continues to lift and competition for the right vehicles remains very strong.

It also reported significant activity from the larger car supermarkets and franchise dealers, supported by a swell of interest from a number of new buyers, helping to record one of the largest monthly buyer numbers seen.

The two- to four-year-old sector remained the hot spot of the market, while older higher-mileage stock started to come under pressure, with values for poorer-quality product drifting further.

Stuart Pearson, BCA chief operating officer, commented: “February trading continued to deliver very good news to the used car sector with firm prices and a healthy churn of stock. The uplift in values seen in January was maintained into February and buyer engagement was particularly significant, with BCA attracting one of the highest monthly buyer audiences recorded.”

He added: “Once we’ve navigated the forthcoming Easter period and some potential pressure on prices, we should remind ourselves that new registrations over the past four years have been significantly lower than traditionally seen and that potentially means increased demand for the most desirable used cars.

“With generally improving economic conditions on the horizon, there’s every expectation that retail demand for used vehicles will remain positive. Perhaps we should also start to be a little more optimistic about the potential for the used car market in the year ahead?”