There is now clear evidence of a recovery in the used vehicle market.

Manheim said its latest results showed “a continued recovery in wholesale used car prices” last month, which followed very strong sales in January.

“This uplift in used car values in the first two months of 2009 has wiped out the downturn in wholesale prices seen in the last six months of 2008,” it said.

The latest BCA figures show average used car values rose for the fourth month running.

February posted a £435 rise against January (up 8.4%), which was itself £300 up on December’s figures.

Performance against CAP last month increased by over six points to 103.6% - the highest monthly figure on record for all-sector values since BCA began reporting.

“There is now little doubt that used values are making a seasonal but possibly significant recovery from the low points of last year,” said BCA communications director Tony Gannon.

“It is likely that average prices will be maintained at this higher level.”