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Demand for used cars set to rise

09 March 2010

The end of the car scrappage deal is expected to cause a surge in demand for used cars, according to industry experts.

Following the end of the Government's scrappage deal and VAT reduction, the price of new vehicles has returned to previous levels.

In 2009, discount schemes encouraged people to opt for new vehicles instead of used ones.

According to Carsite.co.uk, demand for decent used cars will increase as they now offer better value for money.

Figures show that between February and March, trade values for used vehicles in the £4,000 to £6,000 price range have risen by £200 on some models.

"The scrappage scheme may be in the final stages but its effects will be long lasting," said Alistair Jeff, sales director at Carsite.co.uk.

"The market is still healthy with buyers but many are working with restricted finances. Cost-conscious consumers looking to invest in a quality vehicle within budget will find buying used a more accessible route.

"Demand for these value vehicles will increase but supply is still restricted and so prices in the sector will rise. We're looking at a new era for the second-hand market."

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