Demand for used cars increasing

Demand for quality used cars is expected to surge as the Government "cash for bangers" scheme comes to an end.

Prices for decent used cars have started rising, says, as the cost of new vehicles returns to levels seen before the scrappage scheme and VAT reduction.

Discount schemes encouraged many car buyers to opt for new instead of used vehicles during 2009, but with the major schemes coming to an end, the used car market now offers improved value for money compared to new.

Trade values for used vehicles in the £4000-6000 bracket have risen by £200 on some models between February and March.

"The scrappage scheme may be in the final stages but its effects will be long lasting," said Alistair Jeff, Sales Director at

"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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