The average value of used cars sold at auction saw a monthly rise in January – the first such increase since October, according to BCA.
The auction company said an average sale price of £7,597 represented a £679 increase compared with December – although it was down by £803 compared with January 2023.
BCA also saw a significant increase in sold volume last month – which it said was typical following the festive period – and said that the final full week of January saw the highest weekly volume sold for nearly a year.
Performance against guide price is also said to have improved significantly as the month progressed and stock churn improved.
BCA UK COO Stuart Pearson said: “We are pleased to report a very positive start to 2024 following a rather testing time for the wider used car sector as last year drew to a close.
“Used car values saw a significant uplift in January at BCA, with some of the most competitive bidding that we’ve seen for months. I think it’s fair to say that many were caught out by the buoyant market that we’ve experienced, but it’s been great to see some confidence back in our customers.
“With a number of broader economic factors adding to consumer confidence, along with the pricing realignment that took place across the last quarter, there’s no surprise that conversion rates have lifted and we’ve seen stock churn increase dramatically.”
Despite positive trends emerging, Pearson said it was important not to get too carried away.
He said: “We could see some pressure on used values around the corner, with new vehicle discounts being promoted as we head towards the March plate change.
“In the short-term, it feels like it’s going to be a very seasonal February, with supply and demand well matched driving strong but stable pricing, which is definitely a welcome relief after some of the volatility of last year.”
