The average value of used cars sold at auction dropped to £7877 in January 2016, according to the monthly BCA Pulse report.

Compared with December’s figure, the average sale price fell by £169 (2.1%), while the year-on-year value is down by £78 (1.0%), with the average age remaining the same, at 60 months, and mileage falling by 1400 miles to 54,400 miles.

Ex-fleet and lease cars meanwhile, averaged £9440 in January – a fall of 1.5%) compared with December. the average values are down by £38 (0.4%), compared with January 2015, while nearly-new model values dropped by £1600 (7.2%) to £22,074 with the influx of new car PCP deals and pre-registrations hitting the values of younger models.

 “January saw a well-balanced marketplace in terms of supply and demand, with plenty of appetite for used cars across the board,” said Simon Henstock, BCA UK chief operating officer, remarketing.

“However, average prices dropped slightly compared to the back end of 2015 and while there is a lot of demand for good retail quality stock, there are challenges at the extremities of the market,” he added.