Blackpool lost their first-ever match against Lower Breck at the Anfield Sports and Community Centre, ending the year 15th in Hallmark Security League first division north.
Martin Baird had hoped to build on his first win as AFC manager against Ashton Town on Boxing Day but had 11 players unavailable to face the club promoted from the Liverpool County Premier League.
The home side took control midway through the first half with two quick goals.
Jamie Henders capitalised on a poor clearance to open the scoring after 25 minutes and within two minutes Mick Douglas doubled the lead.
AFC pulled a goal back on the stroke of half-time, when Ben Fishwick headed home from a corner.
However, any hopes of a fightback were dashed on 69 minutes, when Luke Duffy scored Lower Breck’s third.
AFC played well in patches but Baird could have no complaints about the defeat.
He said: “We’re all learning new ideas and we are learning about the lads more each game.
“We will go through the goals we conceded and have a look at how we could have played a style that caused problems.
“We had chances to maybe change the result, especially in the first half when it was still goalless. We need to work on taking those chances.”
AFC are away to struggling Daisy Hill on Saturday.
Blackpool: Cameron, Betteridge, Darnell, Donaghy, Hall, Thomason, Fishwick, Pickering, Vaughan, Williams, Duffield; subs; Taylor, Gellatly, Bradley, Sharples