Used values of petrol cars continue to be strong but demand for electric cars has grown, says Cap HPI.

Tha automotive data expert's insight shows that city cars and superminis outperformed seasonal trends in January, as average values rose by 0.8% and 1.2%, respectively, at three years and 60,000 miles. 

Demand for electric vehicles pushed prices up by 0.6% at three years and 60,000 miles.

Overall prices reduced by 0.2% at three years, 60,000 miles, a better result than the downward movement in January 2017 (0.6%).  

Cap HPI’s senior editor of black book James Dower (pictured) said: “The new year usually sees an upturn in retailer activity which then translates to a more buoyant wholesale market. 

"Much of the strength in values can be attributed to the easing of new car pressure compared to the start of last year and the greater focus on used cars expected throughout 2018.” 

Average petrol values continue to be strong, he said. Overall, at three years 60,000 miles, petrol values increased by 0.1%.

Diesel values decreased by 0.5%. 

Dower said: “Price performance of alternative fuel vehicles (AFV) reflects greater consumer acceptance of technology outside of traditional internal combustion engines.

“The trends that have developed for both electric and petrol hybrid derivatives over the last year or so have certainly been illustrating strength in demand. 

It's an encouraging sign for future values as we are likely to see increasing volumes of AFV’s appear in the used car market throughout 2018.”