Latest data from BCA, the vehicle auction company, shows that October average monthly used car values fell to £4,743.

It is their lowest point this year. And follows a small rally in September.

The fall of £69 was actually lower than that experienced over the same period last year.

However, it comes after months of sustained price pressure.

Average values have tumbled by more than £1,000 in 2008. Year-on-year, values are £743 behind those recorded in 2007.

It is the fourth month running that the average auction value has been below the £5,000 threshold.

“With prevailing economic conditions remaining difficult, there is unlikely to be any short term relief for used car vendors,” commented BCA’s Tony Gannon.

“Despite this, there are a number of operators who are continuing to flourish in the wholesale market, both as sellers and buyers. Feedback from our auction buyers suggests retailers selling affordable budget stock are finding a steady demand from retail customers.”

The data was assembled from BCA’s monthly Pulse auction report.

Confidence returning to market says BCA data