Manheim’s latest market analysis reports that the continued upsurge in used car prices and demand has continued into March.

At £6,694 the average wholesale used car selling price in March was up 6.4% (£400) when compared with the previous month and was up 0.08% (£5) when compared with March 2008.

All three sectors – fleet, dealer and manufacturer – reported increases when compared with the previous month.

In the fleet sector, average month-on-month values rose by 8.9% (£493) following an increase of 8.6% (£439) in February, while in the dealer sector average month-on-month values also rose by 8.9% (£159) compared with a rise of 7.6% (£125) in the previous month.

The manufacturer sector also saw a month-on-month increase of 3.4% (£388) following an increase of 12.9% (£1,323) in February.

Mike Pilkington, managing director at Manheim Auctions and Remarketing, said: “The continued recovery in the wholesale market and the effect on used car prices throughout the first quarter has been unprecedented.

“While the first quarter is traditionally strong for used car sales we do believe that dealers will continue to invest in used car retailing for the remainder of this year however we expect to see prices levelling off shortly.”