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The successful Government car scrappage scheme that has evolved over the last 12 months is coming to close at the end of this month and car experts believe that the success of the scheme is likely to create a shortage and a demand for vehicles priced in the £4,000-£6,000 price bracket.

Carsite.co.uk believe that UK car insurance customers will struggle to receive value for money when searching for a new vehicle in the above price range, forcing drivers to consider smaller, more economical cars that have proved so successful during the Government’s scrappage scheme.

Prices for smaller, less powerful vehicles have increased over the last two months according to Carsite.co.uk, with some vehicle values raised by up to £200 within the space of eight weeks. Two vehicles that have experienced the most significant price rises are the Citroen C1 and the Nissan Micra.

The tighter economic situation regarding the value of vehicles and used car insurance has seen a significant increase in customers showing their savvy nature, comparing and shopping around for the most cost-effective premiums.

Alistair Jeff, sales director at Carsite.co.uk, said: “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.”