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The average value of used cars at the three-year/60,000-mile point has fallen by 2.1% in December, according to Cap HPI.
The data firm said this represented a shift closer to normal seasonal movements, following an 8.4% drop over the past two months.
It said the average December movement over the last decade was a 1.3% fall, with the largest being a 2.2% drop in 2014.
Cap HPI director of valuations Derren Martin said: "Although the drop does equate to a 10.5% or around £2,000 reduction in the last three months, it is important to remember the context behind the moves - in a six-month period in 2021 values increased by almost 30%, equivalent to over £5,500 on average, and they had barely dropped until the last few months.
"Average used car values remain around 13% above where they were at the start of 2021."
Cap HPI said the average value of one-year-old vehicles has dropped by 1.8%, while the average five-year-old vehicle has dropped by 2.1%, and the average ten-year-old vehicle by 1.4%.
Used EV prices are said to have dropped by more than 40% during the past 12 months, and Cap HPI said this decline had continued during December, with a 2.3% decline for three-year-old models, compared with 2.1%, 1.9%, and 2.2% for petrol, diesel, and hybrid cars respectively. However, there has been a 100% increase in the number of used EVs sold compared with December 2022, and during the last six months of this year electric has been the fastest-selling fuel type on average, at 39 days, compared with 45 days for petrol and 47 days for diesel.
Looking ahead to 2024, Martin said: "It is likely that supply will continue to outweigh demand, at least in the short term. In the first quarter of 2023, values went up in each of the first three months, something we had not witnessed before. It is unlikely to be repeated in 2024, mainly because of the volume that will be present.
"However, we are forecasting far smaller drops than over the last three months and a relatively positive start to 2024. Live values continue to be the way forward, with monthly ones out of date if not before they are published, certainly soon after."
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