Used car values at auction rose for the first time this year as demand for ex-lease and contract hire vehicles outpaced supply.

Values achieved at BCA auctions improved by £745 across the board compared to May 2022, equivalent to an 8.8% increase over the month, although remain behind June 2021’s performance.

BCA said professional buyers continue to focus the most attention on the best examples of vehicles in Grade 1 and Grade 2 condition.

BCA UK COO Stuart Pearson said: “June saw particularly strong demand for vehicles less than three years old along with an uptick for the sports and prestige models that you typically see at this time of year.

“The lack of registrations during the early part of the pandemic is definitely playing into the imbalance in the ex-lease and contract hire sector and this, combined with new car supply pressures, has created a sweet spot where even in the current climate, demand is definitely ahead of supply.” 

The ongoing high costs of fuel and news of improvements across the UK’s charging infrastructure has generated increased levels of buyer interest in EV/hybrid vehicles, too.  Values have remained firm in 2022 and typically well ahead of last year.   Anecdotal reports suggest dealers are typically buying to order reflecting direct interest from retail customers who are increasingly well informed about green motoring.