Used car prices rose by 11.2% year-on-year in February as buyers continued to compete strongly for stock despite rising volumes of vehicles entering the market, according to BCA.

Average values rose to a record £8,822, with an average mileage of 49,601 and age of 55.26 months, during the month, up from £7,929, 54,226 and 60.17.

Nearly-new prices fell by more than £3,000 over the same period, however, to an average £17,247.Prices of fleet and lease stock also rose to the second highest point on record, while price performance for dealer part-exchange vehicles remained at near record levels.   

February recorded the highest headline figure since Pulse began reporting in 2005, with values rising by £203 (2.3%) to £8,822. 

Simon Henstock, BCA chief operating officer UK Remarketing, said: “BCA reports strong levels of demand in February, with plenty of interest in retail ready cars. 

“February was a good trading month, however, the increase in the average selling price is only partially driven by the market. 

“The richer mix of product offered by BCA, along with the lower average age and mileage profile is also impacting positively on values.”

Henstock added: “Buyers still have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. 

“The market is anticipating increased part-exchange business and greater volumes from fleet and contract hire sources over the coming weeks. 

“With Easter imminent – often a watershed in demand – this could impact on residual values in the weeks ahead and BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations.”

Average values in the fleet and lease sector rose marginally, reaching £10,179, the second highest point on record. 

Retained value against original MRP (Manufacturers Retail Price) improved by a half a point to 42.5%, while year-on-year values were up significantly, rising by £517 (5.3%), as both age and mileage continue to decline. 

Dealer part-exchange values were effectively static in February, falling by just £11 to £4,568 over the month. 

Year-on-year values were ahead by £313 (7.3%), with average age and mileage little changed over the period.