So says CAP based on research from its “Dealer Insight Panel” of around 100 independent used car retailers for Black Book Live.

In the latest survey of 108 dealers across Britain, almost 85% reported that July brought an increase in used car retail sales. Only one dealer reported fewer sales, while the rest said they had maintained the same level of retail activity achieved in June.

This was a significant improvement on the previous month, which in itself showed a strong performance for independent dealers.

The news comes as the UK continues to lead the way on new car registrations while the rest of Europe struggles.

Mike Hind of CAP Automotive said: ‘The car market in Britain is one of the leading lights in our economic recovery. New car sales have been outpacing every European country and the used car market is also showing real strength.

‘The strength we are seeing in retail used car sales is particularly welcome at the moment because the unprecedented incentives being offered to make new cars more affordable than we have seen for decades would otherwise pose a severe risk of greater depreciation.

‘Whenever new cars are heavily discounted, or offered with other financial incentives, it tends to mean prices on cars up to 12 months old have to be reduced to keep them competitive.

‘But this year, thanks to sustained demand from motorists, depreciation has not accelerated in the way we have sometimes seen historically, when new car sales were stimulated by the heavy reliance on discounts and offers.’