Prices for the majority of mass market three-year-old cars have been falling at an above average rate in recent months, according to EurotaxGlass's.

Both April and May saw prices fall by 3%, followed by a 2.5% decrease in June.

Adrian Rushmore, managing editor at EurotaxGlass's, said: "Price movements over recent months have generally been blight more severe than those of the same period in 2006. Moreover, this year's dip came earlier than in previous years and the month-on-month drops have been sustained."

Rushmore said that July estimates point to a further 3% reduction in prices, as dealers have reported low levels of customer footfall in the first two weeks of the month.