Average used car values fell to £4,743 in October – the lowest level this year – following a small rise in September.
The £69 drop follows months of financial pressure that has seen average used car prices fall by more than £1,000 in 2008.
According to vehicle auction company BCA, which released the figures, year-on-year used car values are down £743 on 2007. And in October, average used car auction values slipped below £5,000 for the fourth month running.
Used car market
BCA said current conditions were unlike anything seen in previous downturns, and warned that there is unlikely to be relief for used car vendors in the near future.
BCA’s Tony Gannon said: ‘The market is experiencing the sort of conditions that can promote extreme short-termism amongst professional buyers.
‘It can be difficult to buy for stock in certain price bands because the fear is that further price falls will wipe out any possible profit margin.’
Part exchange cars
But sellers and buyers who adapt quickly to the economic conditions will continue to flourish, Gannon said, particularly when they price stock keenly. The shows private sellers how to price their cars effectively.
In September, average values for part exchange cars increased for the first time since January. However last month, a small fall of £43 (2%) was recorded.
The Which? website is packed with free advice to help you get the best price when you or part exchange your car. To get an idea of what your car is worth, head over the .
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