Cap HPI‘s analysis showed that ‘three years 60,000 miles’ vehicle values fell by 1.1% last month, compared to a fall of 1.6% in December 2016.

James Dower, senior editor of Black Book at Cap HPI

Average values at one year, 10,000 miles fell slightly more by 1.2%, which Cap HPI said was due to greater volumes entering both the retail and wholesale market.

The City Car sector saw high demand, with values falling by only 0.1% for three years, 60,000 mile vehicles – including top performers Fiat 500 (08-15) up 2.1%, Toyota Aygo (14-) up 2% and Smart Fortwo (14-) up 1.8%. Similarly, the electric vehicle sector saw an average price rise of 0.9% for three year, 60,000 mile cars. Renault Zoe (13-) was up by 9.9%, Smart Fortwo Electric (13-15) up 5.2% and Peugeot Ion (11-) up 4.2%.

James Dower, senior editor of Black Book at Cap HPI said: “Historically, used car activity starts to improve after the Christmas period and values begin to strengthen.

“Wholesale stock levels tend to be relatively healthy at this point in the year, but it is likely that the higher graded vehicles will generate the greatest level of attention from the buyers and will look to command higher values in the increasingly competitive marketplace.

“The used car market is likely to increase in volume due to the historic levels of new car registrations but, with the decline in new car volume, this should have a stabilising effect.”