The average price of used cars sold at auction fell by 1% month-on-month in October, according to BCA, which said this minor decline in fact disguised wider market pressures.
The remarketing company said the monthly average of £7,244 – which represents a 5% decline compared with October 2025 – came amid a 2.5% drop in performance relative to guide price expectations.
It said more significant pricing moves were seen on older vehicles compared with clean three-to-four-year-old stock – a trend it expects to continue for the rest of 2026.
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BCA said the EV sector was performing strongly, with the company achieving its highest sold volume week for EVs on record during October, while plug-in hybrids were also in demand.
However, it said traditional fuel type demand remained affected by high fuel prices, with diesel guide price performance continuing to erode dramatically, and indications that there was still some way to go for this trend.
Despite the market pressures, BCA said its monthly buyer numbers had continued to climb, exceeding 10,800 for the first time ever.
Stuart Pearson, COO at BCA, said: “The used car market during October 2026 saw some of the toughest conditions for some time. External pressures were significant, with cost-of-living concerns and record-high fuel prices continuing to impact retail used car demand, and seasonal factors ranging from school holidays to the Budget also in play.
“Alongside these factors, exceptional new car deals offer motorists a compelling alternative with very affordable monthly payment plans and long warranty periods.
“Used car sellers are therefore having to work even harder to attract retail consumers, not just with headline prices, but running costs becoming more of a consideration than ever.”
Pearson said it was hard to remember a time when the breadth of new car offers had been so significant.
He continued: “As a result, we’re seeing increased volumes of lower-value part-exchanges reach the market. Buyer expectations versus published guide prices, even on live products, can prove to be entirely different and sellers need to focus on the detail and ignore the headlines, to ensure that vehicles have the best chance of selling first time.
“Expecting a ‘clean’ price for an average or poor condition vehicle will inevitably lead to stock build and buyers will quickly turn to sellers that are more pro-active and take a more pragmatic view of the market.”
‘Opportunities ahead’ for dealers
Despite the market pressures, Pearson said there remained opportunities for dealers.
He said: “Smart operators are focusing on Christmas and New Year now and purchasing vehicles early to get ahead of any potential preparation delays. It means they will have the retail stock they need early in 2027 when the market inevitably picks up.”
Pearson added that although the current market conditions were testing, they did not feel like the whole market was in a slide of the sort seen in late 2023.
He said: “There are plenty of bright spots where demand remains positive and competitive, EVs will continue to be good news and clean three-to-four-year-old well-presented vehicles continue to sell strongly, in contrast to the challenges facing older, higher mileage and poorer-condition stock where prices are tumbling and are unlikely to slow.
“Speed of sale remains key to success when the market is moving, and savvy sellers continue to use all of the remarketing channels that working with BCA brings.
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“Experience tells us that the market late in the calendar year is typically more difficult to navigate when economic headwinds are buffeting the sector, so we continue to work closely with our customers to make the best of what is expected to be a very gritty run-in to the end of 2026.”