Demand for used cars remained strong in May with a 1.3% drop in values at the three-year, 60,000-mile point, according to cap hpi’s Black Book database.

At 1.4%, diesel vehicles showed a slightly higher value drop than petrol’s 1.2%. City cars’ values declined at a faster rate, with petrol variants showing more resilience.

Hybrids also saw a fast rate of decline, due to larger volumes hitting the market and prices having been particularly high in the past. Electric vehicles, meanwhile, outperformed the rest of the market, with some older models even appreciating slightly.

SUVs were singled out as one of the classes most in demand, regardless of fuel type, also thanks to the variety of models present in the market. The high demand, said cap hpi, mirrored trends in the new car market.

Derren Martin, head of current valuations at cap hpi, said: “After months of modest value drops, or even increases, in Black Book Live, the market is getting closer to having what could be described as a more expected deflation.

“The market is still relatively stable, and prices relatively high, but as we move through the next month or two, there will be challenges that could accelerate value reductions. However, that is a regular occurrence for June.

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“A continuing pattern is that certain ex-lease or personal contract hire cars have struggled to achieve previous prices, as many similar variants have entered the used car arena at the same time – conversion rates have struggled, and prices dropped.”