British Car Auctions (BCA) has confirmed a robust start to 2025 for the used car sector, with strong buyer engagement and high activity levels across its online sales platform throughout February and into March.

Despite a month-on-month dip in average vehicle values, overall demand remained high, supported by increased participation and consistent volume absorption.

According to BCA data, average used car values in February were £7,523, down from £8,042 in January.

The decline was attributed to a shift in the vehicle mix rather than softening demand, with older, higher-mileage stock proving particularly popular as buyers broadened their purchasing criteria to replenish forecourts.

Engagement levels reached a new peak in early February, with the first week of the month recording the highest number of active buyers ever seen across BCA’s platform.

Despite February having three fewer selling days than January, sold volumes held steady, signalling sustained momentum.

Performance against guide prices remained ahead of the same period last year and improved further moving into March.

Stuart Pearson, chief operating officer at BCA, said: “BCA’s online sales have been fuelled by some exceptionally strong buyer engagement during the first three months of this year, with our seven-day live auction programme providing our customers with every option to suit all of their buying needs.

“There’s a definite feeling of confidence in the wholesale market and with BCA’s weekly entries being significantly ahead of the same period last year, it is great to see the market absorb the volume and come back for more.”

Pearson also noted a sharp increase in new car activity in March, leading to a faster turnaround of part-exchange vehicles.

He said: “Many dealers have worked hard to sift through part-exchanges quickly, with the strong market conditions helping to return cash quickly.”

Electric vehicles (EVs), often highlighted for volatility, showed notable gains in the wholesale market.

BCA expects to have sold more than 12,000 used EVs by the end of Q1, with buyer numbers up 60% year-on-year.

Pearson acknowledged fluctuating performance against guide prices, but attributed recent demand to more realistic seller pricing and BCA’s enhanced EV grading system.

He said: “While EVs continue to be an area of the market that constantly attracts negative media attention, the facts are that by the end of the first quarter, BCA will have sold more than 12,000 used EVs and seen the number of buyers lift by 60% on the same period last year.

“We are seeing a very sensible approach from most sellers that is driving strong demand and is creating good retail returns.”

Looking ahead, BCA remained optimistic about market conditions, with Easter not expected to dampen demand.

“While Easter can often be a watershed for demand, with the volume of used vehicle retail activity currently taking place and the generally low levels of stock that most used car retailers are carrying, there is every expectation that we should continue to see a strong and stable market for some time to come,” Pearson concluded.