The UK used car market remained tough during June, although alternatively-fuelled cars and fuel-efficient vehicles fared reasonably well.

According to auction firm BCA, used car values tumbled in the second quarter of 2008, and June was the most difficult month to date.

The fleet/lease and part-exchange sectors fell by 3.7% and 4.9% respectively, and average performance against CAP clean prices fell in all sectors.

Despite this, there was a rise in demand for cars powered by alternative fuels in view of the rising fuel prices.

Although volumes remain small, values for LPG vehicles have consistently outperformed price guides.

In June, they achieved 115% of CAP clean, while both diesel and petrol values were 92%.

According to Manheim Auctions, the average price for a car sold in June was £6,485, 2.7% down on May.

But the fuel efficient supermini sector was up 4.2% on the previous month and by 3.1% on the previous year.

In contrast, soft roader 4x4s fell by 7% and larger off-road vehicles by 13.9% between May and June.

BCA says that values have stalled with little prospect for improvements during the rest of 2008.

“It is no surprise to see values under pressure in quarter two,” said Tony Gannon, BCA’s communications director.

“We have seen average prices fall in the same period in previous years, although not as far or as fast.

"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.”