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The average price of used cars sold at auction rose by 1.7% month-on-month in February, according to BCA.
The company said the new average of £8,540 represented the second monthly increase in a row.
Sold volumes also increased for the second month running, and performance against guide price improved marginally.
In addition, weekly volume sold increased significantly to reach the highest point of the last 12 months.
However, the company said that there had been some softening of demand in the budget sector, and continued pressure on EV values.
Despite this, 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 is 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 lockdown, when many of the supply challenges in the new car market commenced.
"The net result of all of this is a definite resilience to the used car sector that is unlikely to waiver for some time. Even with some further acceleration in new car registrations expected over the next few months, 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."
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