Used car wholesale values continue to rise in February

Average used car prices at BCA auctions increased in February for the second month running.

The price jump was paired with a “significant” increase in volumes, according to the remarketing firm.

Values averaged £8,540 at BCA in February 2023, up by £140 or 1.7% compared to January 2023, as sold volumes increased for the second month running and performance against guide price also improved.

There was some softening within the budget sector and continuing pressure generally on EV values, but significant strength in retail stock up to 5 years old.  Despite the combination of movements, the final week of February saw average values reach their highest point so far this year.

BCA UK COO Stuart Pearson said: “While the cost of living squeeze continues, there appears to be some light at the end of the tunnel for consumers with news that government help with energy costs is expected to continue and forecasts that inflation will fall to around 4% by the end of the year.

“After some significant pricing realignment over recent months, we’ve also seen the used EV sector starting to stabilise for a number of models, which has stimulated a significant change in retail interest.

“From a supply perspective, the SMMT has reported seven consecutive months of growth in new car registrations but, even after a 26.2% rise in February, we are still a long way behind the high points of the pre-pandemic period.  Added to this, we are also approaching the three-year anniversary of the first lock-down, when many of the supply challenges in the new car market commenced.”

BCA predicts the ongoing shortage of quality 0-3-year-old product should mean that supply and demand will remain reasonably well balanced for the foreseeable future.