THE number of people planning to buy a second-hand car has fallen sharply, it was revealed today.

Around 4.5m intend to purchase a used vehicle in the period March-August this year - 12 per cent down on the number who planned to buy in the six-month period from September 2008 to February 2009.

The March-August 2009 would-be buyers intend to fork out just over £20bn, or £4,487 each on average, on vehicles - a 21 per cent drop on the figure for the previous six months, according to Sainsbury's Finance.

Steven Baillie, head of Sainsbury's Loans, said: "Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal for their existing car. Our findings show the amount people anticipate spending on second-hand cars is significantly less compared with six months ago, which may be a knock-on effect of people's growing financial uncertainty.

"Sellers should have an accurate price in mind based on the car's market value which includes taking into account the mileage, wear and tear and any extras or special edition components. While too high a price will put potential buyers off a low price may also make them wary."