New figures released by leading vehicle auction company British Car Auctions (BCA) shows that used car values tumbled in the second quarter of 2008.
The BCA Index fell by nine points the biggest fall recorded in over three years.
The news coincided with the Office for National Statistics releasing data showing a 3.9 per cent drop in June, the sharpest monthly decline since 1986.
BCA’s report showed that the average used car value fell to £5,332 in the second quarter of 2008 a fall of £390 compared to the previous quarter.
BCA communications director Tony Gannon said: What is more important now is seeing if the market will bounce back in quarter three as it has in previous years.
"June was a particularly tough month and we expect to report more of the same for July. Despite this, the demand is still there for good quality product if it is valued in line with market sentiment."
All those in the car showroom industry – such as used Alfa Romeo and used Aston Martin dealers – will nervously await next quarter’s statistics.