Used car values rose by 0.4% in March due to strong demand, according to Cap HPI.

Average values have increased by 1.2% since the turn of the year, compared to a drop of 0.7% last year.

Derren Martin, head of current valuations at Cap HPI, said: “An increase in average values in March moving into April is not unprecedented. Values have gone up at this time of year in four out of the last five years, with 2017 being the exception. However, it is the cumulative increase since the turn of the year that is the main eye-opener.”

City cars, superminis and lower medium-sized cars continue to show strength as consumers desire smaller petrol cars.

On average, diesel vehicles also went up in value during March. While smaller diesel cars are generally not as popular as their petrol counterparts, demand for larger models remains healthy.

There has been a noticeable increase in used car retail activity. While there is still a variety of new car finance offers available, they are not quite as attractive as they once were. The discerning buyer can get a used car deal, either PCP or outright purchase, that more than satisfies their requirements,” added Martin.