New research has found that motorists are now being forced by rising fuel costs and the credit crisis to go for cheaper car or van insurance policies.

The study by Sainsbury’s Finance found that the move to backdate road tax, rising fuel prices and the current financial crisis that is affecting every fabric of the society are jointly making fewer car and van drivers to head to dealerships.

They are also taking the risks of taking out cheaper, less comprehensive van or car insurance.

With this development the country’s used vehicle market has lost about £2 billion in the last six months, said the research.

It was also found that by August this year, £22.76 billion would have been spent on used vehicles from March of the same year. This will be down from £24.87 billion spent six months earlier.

Head of Sainsbury’s Loans, Steven Baillie, advised sellers to make sure they know the market value of a vehicle in order to get a good deal when selling their existing car.