Uses car values rise despite EV volatility

Used car values at BCA saw a modest uplift in January 2023, with improved demand driving a 1.6% increase.

Values averaged £8,400 in January, which is up by £135 compared to December 2022.

However, the used EV market remained volatile, although the uplift in general demand combined with a significant pricing correction moving into January did have an impact on values.

BCA UK COO Stuart Pearson said: “Used car values saw an uplift in January 2023, with improved demand and competitive bidding as the motor industry started New Year trading with a good deal of seasonal confidence. Consumer demand was reported as being better than expected by most and it is fair to say that after the challenges of the last quarter, the unexpected lift to the January market was very welcome.

“Most sectors strengthened as the month progressed, however EV continues to be volatile as buyers and sellers grapple with finding realistic values for some models that are returning in more significant volumes.  It therefore remains vital that the latest pricing intelligence is utilised to support decisions in this area.”

“Meanwhile, economic reports seem slightly more positive in recent weeks, with talk of inflation starting to fall and energy costs stabilising later in 2023, along with the SMMT continuing to report growth in the UK new car market – while also noting that volumes remain well behind pre-pandemic levels.  Whilst new cars are becoming more readily available, there is every expectation that used car values will remain resilient for the next few months.”