The average value of used cars sold at auction reached a 12-month high in July, according to BCA.
The auction company said values averaged £7,800 during the month, up by 3.2% compared with June, with wholesale demand across most sectors said to have remained positive and unseasonably strong heading into the holiday period.
As well as rising values, sold volumes also increased significantly, up by 14% month-on-month.
BCA also highlighted positive demand for EVs, with first-time conversions for the vehicles averaging over 80% in July.
BCA COO Stuart Pearson said: “The used car sector continued to exhibit a great deal of stability in July, as BCA recorded the highest monthly value in 12 months.
“Significant buyer engagement and an improving mix of stock combined to drive sold volume upwards, well ahead compared to June and the same period last year.
“2024 has definitely been a year of recovery following the pricing volatility in the final quarter of 2023 and, in particular, the consistency of the last few months has done much to promote confidence across the wider used car market.”
Pearson added that with economic pressures starting to ease and interest rates being reduced, consumers were expected to carry out deferred purchases as the market moved towards the final quarter of the year.
He said: “With retail stock levels running generally low, we’re already seeing a few early movers get ahead of the expected positive bounce that the market can take as we move out of the school holiday period.
“It all points towards a strong and stable market for some months to come.”
