Just over half (51%) of all used cars listed by dealers on Auto Trader are more than 5% above or below market value which is halving lead generation, according to the company.

Auto Trader argues that overpriced cars a quickly dismissed by price savvy car buyers. It claims underpriced cars also suffer from buyers suspicious of cars that look too cheap.

Auto Trader data has also revealed that 31% of cars on sale that have been on sale for more than 60 days have never been re-priced by the seller.

Tim Marriott, Auto Trader trade solutions spokesman, said: “Last year we revealed that more than 23,000 cars had never been re-priced, despite being on sale for more than one hundred days.

“And these latest figures confirm that too many retailers are still failing to seize the pricing initiative.

“Having a strategy around price and constantly monitoring the market are key to the success of a retailer’s digital business. I urge every customer to take advantage of the insight that data provides, to help sell cars more quickly in this fast-moving, consumer-led market.”