The end of the government's car scrappage scheme is expected to increase the demand for cars in the GBP4,000 to GBP6,000 bracket, it has been claimed.
According to Carsite.co.uk, car insurance customers will see new vehicles do not represent value for money and will instead go in search of small cars which were immensely popular under the scheme.
The website claims that used prices for small motors have risen by as much as GBP200 in February and March, with a 2007
Vauxhall Corsa GBP180 more expensive than it was in January.
It seems people who compare car insurance for a cheap
car insurance quote are applying their savvy shopping to car-buying too.
Alistair Jeff, sales director at Carsite.co.uk, said drivers are looking for better value for money in these tough economic times.
"The scrappage scheme may be in its final stages, but its effects will be long lasting. The market is still healthy with buyers but many are working with restricted finances," he added.
Vehicles such as the
Citroen C1 and the
Nissan Micra are two cars the website claims have shot up in value recently.
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