Used car values rose for the second month in a row in July, according to auction company BCA.

It said the average sale price during the month was £9,464, a £268 increase compared with June, which itself saw prices up by £775 compared with May.

However, July’s average was still down by £49 compared with July 2021.

BCA described July’s performance as an impressive indication of market strength and stability, given ongoing cost-of-living concerns and other pressures affecting the wider economy.

BCA UK COO Stuart Pearson said: “July continued the emerging trends of previous months with strong levels of demand for younger, higher-grade vehicles, alongside sustained interest in sports and prestige models, with the particular focus on convertibles that you would expect to see at this time of year. 

“There has been a divide forming in the market with the shortage of ex-lease, rental and OEM stock ensuring resilient prices for one-four-year-old vehicles, whilst at the lower end, some of the poorer condition part-exchange vehicles have seen prices drop more dramatically as dealers have concerns over potentially expensive preparation costs and delays in parts supply.

“The wholesale used vehicle sector is experiencing ongoing and potentially long-term challenges brought about by the pandemic, along with the subsequent knock-on effects of supply chain disruption and significant economic pressures facing both consumers and businesses.”