Record new car sales have caused a slump in the second-hand market - with prices in Worcestershire falling by more than 10 per cent since last June.

More and more buyers have snapped up new cars since their prices began to fall last summer - causing saturation in the nearly-new and used markets.

The result is a glut of bargains in the county's second-hand industry, with 12 per cent cuts on average and some family cars 22 per cent down in price.

"We don't have a problem selling used cars at the moment," said Richard Denning, part of the sales team at Citron's Chevron Motors Ltd, in Bransford Road, St John's. "But it's certainly a fantastic time to be a consumer.

"Prices started to decline three or four years ago, when there was media hype about the cost of cars on the continent. Manufacturers started to lower the price of new cars and people started to buy them instead of used ones.

"But used cars are the same as any other goods - once you find the right price for the market they will sell."

And Robin Hunt, of Laugherne Garage (Stirling of Worcester) Ltd, also in Bransford Road, St John's, said there had been price cuts across the industry.

"All prices have gone down in the last year or two, which offers consumers better value for money," he said. "And the low cost of borrowing means there are great deals available on new cars.

"People seem to be changing their cars more frequently so there are more nearly new and used cars on the market.

"The real problems are in the 'banger' market. Today you may not get any offers at auction for a 10-year-old car, which, a year ago, was worth about £1,000."

Other experts clearly agree that, while new cars are the cheapest they have been for years, the real bargains are still to be found in the consumer-led second-hand market.

"Those looking for real deals should look to used cars, which represent great value for money at the moment," said Andy Bayes, of the Alliance & Leicester Motor Finance team.

"Those prepared to haggle can get a great bargain as dealers desperately try to move huge volumes of cars off the forecourt."

Rob Aherne, editor of What Car? magazine, predicted the second-hand market would continue to weaken in the foreseeable future.