First time conversation rates at auction increased in February by 2.6% to 83.4% - the rate was down by 0.5% on the same period last year.

And according to The National Association of Motor Auctions (NAMA) monthly car auction data report today for February average selling value decreased 4.8% from £5,296 to £5,041.

Average mileage went up by 2.3% to 66,811 and the first time premium was £74.

Louise Wallis, head of NAMA, said: “Wholesale activity in February was buoyant. It was clear that the excess volumes experienced in January had largely washing through auction centres.

“Whilst there was no shortage of stock, demand led to an increase in conversation rates.  

“The following weeks will see large numbers of part exchange vehicles entering the market following the plate change in March.

“The current demand for cars should allow these vehicles to be absorbed by the market as they are bought to supply dealer forecourts to fulfil consumer demand.

“We now look forward to seeing what the first quarter of 2017 brings.”