The firm said that well-maintained contract hire, daily rental and manufacturer vehicles are achieving strong financial returns with high conversion rates.

It added that with a predicted rise in volume in the coming months from PCP returns, the used car market remains buoyant and should result in a busy Q4 period, with franchised dealerships and independent motor retailers actively sourcing quality ready to retail vehicles. 

Michael Tomalin, managing director at City Auction Group, commented: “Over the last three months, we have seen lower volumes of corporate fleet vehicles and this has been pushing up prices. We have seen values rise by 3-5% across the board since May and CAP clean values have been high on small city vehicles. We expect a slight drop in values over the next quarter as supply increases, which is good news for franchised dealers and independent motor retailers.”