Manheim has reported significant falls in used car values last month.

Average wholesale used car values fell by 4.7% (£346) to £6,978 in June following a slight increase of 0.6% in May.

Values in the fleet sector fell by 7% (£465) to £6,144, according to the auction company's latest Market Analysis for Cars report.

Overall average used car values are now just 0.7% (£52) ahead of the same period last year.

Average age is up by three months compared with June 2009 at 51 months and average mileage is higher by 1,986 miles at 50,896, perhaps reflecting extended use during the recession.

This is particularly evident in the fleet sector with average age and mileage of small hatchbacks up by eight months and 3,500 miles respectively.

Compact executives are up by seven months and 7,500 miles while coupes increased by nine months and 6,500 miles.

Although the overall position in 2010 compared with 2009 may suggest that all sectors have performed similarly, the fleet sector is actually down by 5.1% (£332).

“Given the unusually difficult trading conditions in June a fall of this magnitude, significantly above the seasonal norm is no surprise," said Mike Pilkington, managing director, Manheim Remarketing.

"A whole series of short-term factors from the General Election through to the budget and World Cup have made it harder to predict the underlying level of economic confidence and consumer demand. Unless there is a more positive outlook for consumer demand through the traditionally quiet period of the summer months then only a reduction in vehicle supply is likely to ease the pressure on prices.”