Manheim’s monthly Market Analysis has reported that average part-exchange values have hit an all-time high, breaking the £3,000 mark to reach £3,023 in March.

As well as the month-on-month rise, values increased by 18.7% year-on-year, reflecting similar trends reported in March’s BCA Pulse report. The figure marks three consecutive months of increasing prices, continuing an upward trend started in July 2012, which has seen average values rise £649 in the past nine months.

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The increase mirrors better value retention of used cars compared to their original retail value, with vehicles sold in March reaching 19% of their original price for the first time.

Manheim said the figures resulted from dropping vehicle age and mileage in March, with average mileage down by 2,545 miles (3.4%) from February.

The company reported that seven of the 10 segments covered by the report saw increased average prices in March, highlighting executive models, which rose by £503 (10%) and coupe models, which rose £192 (3.5%).

Daren Wiseman, valuation services manager at Manheim, said: "Strong demand for used cars has continued throughout the first quarter of the year, which has helped keep average part-exchange values high", explaining demand had seen "a growth in online bidding. March auction figures reported an increase of 20 per cent in online users’ month-on-month."

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However, he added: "We are now starting to see the effect of a cold and early Easter, which has led to many dealerships being well stocked and an increase in the volume of vehicles coming through the auction houses. This has led to a switch from a seller’s market to a buyer’s market."