The price of a used car fell by an average of four per cent over the first three months of 2012, according to the latest figures from Auto Trader's Price Index.
Prices dropped by around 3.9 per cent year-on-year to average around £8,891 according to the index, which tracks the prices of used cars in the UK.
The car seller attributed the dip to a decline in the number of newer, higher priced vehicles available on the market, with budgets tightened and motorists forced to opt for cheaper, older cars.
Much of this has come as a result of rising fuel prices, which when factored in alongside MOT testing and tyre checking services has increased the overall cost of driving from day to day.
As Auto Trader group strategy director Tim Peake explained:"Recent news has shown that people's spending on fuel is topping food bills."
The figures showed that vehicles aged ten years or more saw a 7.3 per cent decline in prices over the past three years.
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