Reports of a slow-down in the retail market have been backed by Manheim Auctions. New car orders for the new September plate will provide franchised dealers with an abundance of 'nearly new' carsn and as a result they have been visibly absent from auction halls.

Manheim says that this has left the car supermarket buyers and small traders 'to fight it out' which has helped keep residual prices on good stock high. Cap figures have dipped, however, to around 96-97% from 102% and only the best vehicles achieved above Cap Clean.

High spec, low mileage, desirable cars have still been buyable at a premium. But the 100,000-mile plus stock has become increasingly difficult to sell. These vehicles, Manheim believes, cannot be valued against Cap Clean adjusted for mileage and are worth whatever the market dictates at any one time.

Andrew Shepherd, senior group auctioneer, said: "The awareness of the new registration plate and new car sales is certainly having some affect on the used market. It is quite visible in the auction halls that many of the main franchise dealer buyers are missing as they concentrate on their on their own sites in an effort to move on their used stock in readiness for September 1."