Following two months of record price rises in the used car market, values are now stabilising according to CAP.

The extreme volatility appears to be at an end after used car trade prices clawed back some of the value lost during the downturn.

They are now back to November 2008 levels.

"One of the main drivers for stronger used values this year has been a shortage of used car stock, caused by a combination of few part-exchanges due to the slump in new car sales, lower production leading to fewer late plate cars and the extension of some leasing contracts keeping fleet cars out of the market," said CAP

"More volume is, however, expected to enter the market during the next few weeks as confidence among disposers continues to grow.

"The end of the first quarter's clamour for stock, however, is signalled by leasing company average conversion rates reducing from their highest ever level of 95.4% a few weeks ago to 86.6% this month - although this is 14% higher than at this point last year."