LEADING experts said second-hand car values could be increased by the findings of the Competition Commission in future, but there would not be an immediate effect on prices. CAP Motor Research said a move to force manufacturers to reveal pre-registrations could mean up to 500,000 fewer cars on the road as they stopped pushing too many cars on to the market, reducing supply and therefore pushing up used car prices.

But CAP economist Ramesh Notra said: 'The market's been depressed because of a lack of consumer confidence, and only when that starts to return will there be positive effect on sales, and therefore on used car sales and residual values. The report will restore confidence.' Adrian Rushmore, chief car editor of Glass's Guide, said a reduction in list prices was unlikely but it was difficult to work out from the official statement on the commission's findings exactly how it was going to achieve its aim of bringing in more competition to the supply of new cars and how it was going to enforce such measures.

'The devil is in the detail and so far we haven't seen any,' he said. Byers has said he proposes to use the Fair Trading Act of 1973 to force manufacturers to remove price discrimination - in other words, dealers will be given the same volume discounts as fleets. Rushmore pointed out that such a move would lead to a break-up of the 'unwritten rules' of trading relationships issued by car makers which tie fleets and leasing companies into how they use and sell their cars - and make the protection of residual values more difficult.