Average used car values at three years and 60,000 miles moved into the positive in February, the first increase for almost a year.
The small increase of 0.7%, equivalent to £50, marked the first increase since March 2023.
The increase is the fourth largest upward movement in February since Cap Live was launched in 2012. The average movement over the last 11 years is a slight increase of 0.2%.
Derren Martin, director of valuations at cap hpi, 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.”
Superminis were the strongest mainstream sector, increasing by 2.4% at both one and three years old, equivalent to £375 and £250, respectively.
Battery electric vehicles were the weakest fuel type, dropping by 1.7% or c.£375 at three years old in Cap Live in February.
At the one-year age, BEV values decreased by 2.3% or c.£850 in February due in part to the strong new car offers available, with some discounts of up to £15,000 or 30% off the list price.