Stability is predicted to return to the used car market, according to BCA.

The auction company is predicting prices will remain steady afte the “roller coaster” ride of recent months.

The view is shared by the Manheim, with managing director, Mike Pilkington saying: “With average values relatively static across all three sectors the dramatic rise in values seen in the early part of 2009 appears to have peaked.

“Over the next few months we would expect prices to fall but only in line with seasonal norms.”

At BCA, March saw average auction values increase for the fifth month running, but only by £11.

This follows a £400+ month-on-month rise in February and a £300 increase in January.

Values started recovering last November and have risen by around 18% in the intervening months.

Year-on-year, March 2009 values are ahead of the March 2008 average figure by £182 or 3.3%.

“We’re looking for this consistency, not a roller coaster ride, because that just creates turbulence in the market place,” said Craig Purvey, general manager of corporate sales at BCA, said at the recent FleetNet AGM.

The sales of used LCVs have helped, with the average selling price also getting back to the levels seen in March 2008.

“What we see very much in our business is the butcher, the baker, the candlestick maker, as well as the professional buyers, and they are all out there buying,” said Purvey.

“We are seeing a lot of small businesses buy small LCVs from us and that trend has remained strong throughout April.”

It’s the consistency BCA craves, but Purvey admits there are two schools of thought in the business as to what might happen next.

“One says what we had in quarter one was not sustainable and while it has flattened out prices will come under pressure as the market gets harder,” explained Purvey.

“The other says used car prices have fallen so dramatically in 2008 that they’ve still got a way to recover and ultimately it will be driven by two things.

“It will be driven by supply and demand.

"A lot of guys have got extensions out in the market place so stock is short.

“Our inventory is about 20% lighter than it normally would be at this time of year, so that will help, and ultimately there has to be a retail demand.

"If these two things remain constant you may actually see prices moving forward.”