Better value in used cars - website

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The demand for used cars should increase sharply because the Government's car-scrappage scheme has come to an end, according to carsite.co.uk.

Used cars are rising in price at the same time as the price of new cars return to previous levels. Some models of used cars in the £4000-6000 price range are said to have each gone up in price by £200 over February and March.

The "cash for bangers" scheme saw more new cars being bought in 2009 but used cars are now said to be better value for money, suggesting that car insurance may become cheaper for many drivers.

Alistair Jeff, the website's sales director, said: "The scrappage scheme may be in the final stages but its effects will be long-lasting. 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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