Remi Garde's side were beaten 6-0 by Liverpool on Sunday afternoon.
The Villans were humiliated at Villa Park on Sunday, as Liverpool dominated from start to finish in a comprehensive 6-0 victory.
The result was their worst at home since 1935 and the latest in a long line of poor performances in a season that looks almost certain to end in relegation to the Championship.
One positive is that they have managed to surpass the lowest points tall of 11 set by Derby County in 2007/08, but despite that Carragher says they must now be considered as one of the worst teams ever in Premier League history.
"They are an embarrassment and they have been for a few years," he told Sky Sports.
"Forget about what points they are on, I think they are the worst I've seen. I can't remember those seasons. That's as bad as you're going to see.
"It's been coming for a few years, really. I've been watching the games for Sky and have been surprised they've stayed up. They are one of the worst teams in the Premier League."
What will now be interesting is if Villa can manage to sell off any of their current squad if and when they are eventually relegated.
The club are sure to want to make changes and get several names off the books, but that is likely to be a difficult job to do.
Given the way their squad have performed this season there is not likely to be a long line of clubs looking to cherry pick from their current crop of under-performing stars and they may find themselves lumbered come the summer.