Summer slump in used car sales

Used car sales are expected to slump throughout the summer, while prices are forecast to increase, according to new research.

A survey by Sainsbury's Finance has revealed the total value of used car sales could be down by as much as 2.76 billion on the same period in 2008.

According to the research, around 4.5 million adults plan to buy a used car between February and August this year, spending around 20 billion.

However, for the same period in 2008, Sainsbury's found that 4.9 million motorists believed they would buy a used car, spending a total of 22.76 billion.

Although sales are expected to fall until the end of summer, figures from British Car Auctions show a steady rise in the value of used cars sold at auction over the previous six months.

Industry price analysts Glass's has also forecast that the value of the average used car will end the year 16% higher than in December 2008.