Speaking at this week's ACFO Conference, Norman said that following rises in used car values after the 2008 inspired credit crunch recession, a "rebasing" of prices is now taking place.

However, with average new car prices increasing by some 10-13% across model ranges – although it is possible to find price increases of 25% – since the recession, Norman said: 'The UK is the cheapest country in which to buy new cars and that is due to exchange rate mechanisms. But manufacturers have reacted by raising new car prices in the UK.

'Historically, vehicle depreciation has been relatively flat but today the strongest level of depreciation is over the benchmark three years/60,000 miles and that is being reflected in rising contract hire rates. Fleet operators are paying for new car price rises through increases in depreciation.'