The demand for used cars is expected to increase after the scrappage scheme has ended, it has been claimed.

According to online retailer Carsite, consumer demand for second-hand cars will increase as new cars become less value for money.

Between February and March, trade values of used cars in the £4,000 to £6,000 bracket, have risen by almost £2,000 on some models.

Once the scrappage scheme finishes at the end of this month, Carsite expects more demand for well-equipped, better value used cars, particularly in this price range.

Last year, when the scheme was implemented, it was more financially attractive to buy new cars as the price of second-hand models was rising and buyers could receive discounts on new models.

However, when the government-funded initiative ends, the cheapest new car on the market is expected to be around £6,500.

The scrappage scheme began last May and it was hoped it would provide a short-term boost to the car industry during the economic downturn.

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