It is the fourth consecutive month that BCA has reported record used car values.
The substantial rise is the largest monthly increase in average car values ever recorded at BCA.
Year-on-year, average monthly values are up by 41.3%, the highest annual increase recorded.
The ongoing challenges around new car supply have created a “perfect storm” of used car demand with many franchised dealers chasing additional volume to supplement their September numbers.
To satisfy increased demand, Sunday sales became a regular event and sold volumes rose by over 6% month-on-month, further emphasising the volume of product being offered through BCA’s online platform and the strength of the used car market.
Focusing in on the weekly data, average values at BCA rose rapidly during August passing £10,000 for the first time mid-month, then accelerating past £11,000 the very next week. By the end of September, demand for used stock from BCA’s buyers saw the average weekly value top £12,000, with values ahead of the same week in 2020 by a significant £3,497 (40.6%).
Stuart Pearson COO BCA UK said: “The current dynamics seen in the used vehicle sector are very much amplified by challenges around new car supply, and BCA continues to see high levels of buying activity from both franchised and independent dealer sectors.
“The current trading environment and fast-moving conditions can prove challenging when it comes to funding stock. BCA Partner Finance has seen a noticeable increase in requests for increased stock funding facilities, allowing dealers to compete on a level playing field even in a market where values are rising due to the product covering the full auction invoice price, irrespective of any notional book value.
“While the market appears to have plateaued towards the end of September and into October, and values have settled for the first time in many months, this is likely to be a result of the motor trade taking stock following a period of intense activity.
“It’s also the first time that the market has demonstrated any sort of seasonal behaviour for some time. However, in all likelihood, values could strengthen further as we move through the school holiday period and dealers seek to fill their forecourts ahead of the traditional New Year uplift in demand. With challenges continuing around new vehicle supply, we expect used vehicle values to remain very robust at BCA.”