That's the finding of BCA's latest Pulse report, which shows a 6.9% (£504) increase in January's average fleet values to £7,739 – the highest monthly average value since April 2010.

Year-on-year values are ahead by £480, equivalent to a 6.6% rise, with fleet cars averaging 98.65% of CAP Clean in January, a rise of two points over the December figure.

Overall, average values only rose 1.1% (£69) to £5,974 in January due to a sharp fall in nearly-new values. Meanwhile sold volumes increased significantly in January compared to December, rising by 72% over the month and by over 10%, year-on-year.

Performance against CAP Clean improved by over a point to 98.6% from 97.4% the previous month – it’s the third consecutive monthly rise in CAP performance.  Year-on-year, values are just £35 ahead of January 2010, but over £800 ahead of January 2009. 

The publication of BCA's data follows the release of Manheim Remarketing's January figures, which showed that fleet values were up 6.7% (£383) in January to £6,124.

However, BCA's communications director Tony Gannon warned that several factors are likely to combine to affect the market over the next 12 weeks or so.  

'While supply should remain constrained throughout February and the early weeks of March, it is likely that volumes will start to rise in late March following the plate change as de-fleeted and dealer part-exchange vehicles begin to hit the market.

'Easter week itself is late in April and runs into the Royal Wedding – effectively disrupting a full week of trading. This is a particularly important consideration for volume sellers who should be planning their strategies now for that period, which could see demand slowing, just when volumes are rising.'

He added: 'At the budget end of the market, there is likely to be continued demand from motorists who simply cannot afford to buy a more expensive car, but still need personal transport and need it quickly, because their current vehicle has become too expensive to repair or maintain.'