Average used car values have increased by 0.7% during February, according to Cap HPI.

The data firm said the increase, at the three-year/60,000-mile point, was the first seen since March last year.

It was also the fourth largest increase seen during February since Cap Live was launched in 2012, with the average movement over the past 11 years being a 0.2% increase.

Values at the one-year age point increased by 0.2%, whilst values at the five-year point went up by 0.6%. Older cars saw a 0.6% decline.

Cap HPI director of valuations Derren Martin said: “Overall, the average movements in Cap Live values point to a stable-to-strong used car market, following a relatively normal seasonal pattern for the first two months of the year.

“The market remains strong, retailers are busy, and wholesale supply levels are well under control. With the new 24 plates from 1 March, there will be increased volumes in the used market, from fleet returns and part-exchanges, as we progress deeper into the month and beyond. 

“There will also be strong new car offers, particularly on BEVs, as manufacturers chase market share whilst attempting to hit stringent ZEV mandate targets. However, these increased volumes are unlikely to adversely affect used values until April at the earliest, and even then, any effect is unlikely to be overly harsh.”