The average value of a used car declined by 1.6% at three years and 60,000 miles in December, according to automotive data provider cap hpi, falling less than the 1.8% seen at the same point last year.

James Dower, senior editor Black Book at cap hpi said: “2016 saw relative stability in values when compared to the average movements over the last 12 years, with only January and February showing greater downward pressure.”

By sector, cap hpi projected city cars to see a 1.9% decline in January 2017, a lower fall than the 2.8% seen in January of this year.

Dower attributed the projected stronger performance of the city car sector to a reduction in pre-registration activity and stock being more in line with demand.

Electric vehicles saw an average reduction of 0.6%, with the Nissan Leaf improving its values by 2.7% at one year and 10,000 miles, and 1.9% at three years and 60,000 miles. Hybrids saw an overall values increase of 2.7% at three years and 60,000 miles.

Dower added: “Retail demand is likely to increase through January and stock will begin to find its flow through the wholesale arena as dealers look to replace sold units and build a more balanced stock profile.”