Car loans customers looking for a used car have been told to be wary of current market conditions.

The HPI has claimed that the market is experiencing volatility as demand for low-mileage vehicles continues to be high, yet ex-fleet cars are now much less popular.

According to the organisation, fleet managers are "overvaluing" their cars, meaning many are left unsold which in turn is expected to hit values.

The introduction of the 58 plate next month is also expected to add to an already complicated marketplace, it stated.

Commenting on the issue, Martin Keighley, valuations expert at the HPI, said: "Accurate vehicle valuation hasn't been so difficult for some 15-20 years.

"However today's market should be looked at as part of a normal cycle rather than an apocalypse."

Valuations have fallen across all sectors of the market but 'gas-guzzlers' and those in the higher vehicle excise duty bracket are expected to see a five per cent fall in value, he added.

The HPI claims its data has helped many motorists to avoid buying cars that have either been stolen or written off.