Demand For Used Cars On The Rise

More and more drivers will opt for used cars again as the government's "cash for bangers" scheme ends, it is claimed.

Carsite.co.uk found the value of good quality used cars rose as the ending of VAT reduction and the scrappage scheme pushed the price of new vehicles back up to former levels.

Trade values for used cars worth around £4,000-£6,000 rose by £200 on some models between February and March.

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.

With the recession still biting, figures suggest people are investigating as many ways as possible ways to save cash, including extensive comparison of car insurance deals.

"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."