The average value of used vehicles rose by 6.4% year-on-year in August, according to the BCA Pulse report.

The British vehicle remarketer reported an August figure of £8,342, up by £503 from August 2015.

On a month by month basis however, used car values rose by only £1 in August, compared to July’s average of £8,341.

Despite the small rise, BCA reported that this was a record monthly used car value. It also represented the third consecutive monthly increase in used car values.

Simon Henstock, BCA chief operating officer UK remarketing said: “August was a strong month in the used wholesale markets. Prices have improved as inventory has dropped and conversion rates have risen with first time sales.”

According to BCA, fleet lease values rose by 2.3% month-on-month to £9,890 for the third highest on record. Year-on-year values also increased, up by £242 representing a 2.5% increase.

The average age of vehicles in this sector fell by one month to 38.92 months, with mileage also falling by over 2,000 miles to 42,510 miles year-on-year.

The average value of dealer part-exchange cars compared to August 2015 rose by £246 to £4,489. This was despite a slight rise in average age (89.65 months to 89.74 months) and average mileage (69,273 miles to 69,286 miles).

Nearly-new values fell by £215 year-on-year and £318 month-on-month to £21,021 in August according to BCA, though it added model mix had a significant impact on price in this sector.

When compared by body type, the cars sold by BCA in August did not all experience an average increase in value. Only estates, coupes, and convertibles saw an increase, with estates the largest gainer, experiencing an average price increase of £123 compared with the previous month.

Roadsters, the models with the largest average age at 65.93 months, also experienced the largest monthly drop in value, losing 4.64% for a drop in value of £608.

Henstock added: “August improved on [July’s] performance. It has been a strong month with good levels of demand and with the September plate change nearly upon us, we can expect the markets to be very busy indeed over the coming weeks.”