Van insurance customers, may find it increasingly difficult to purchase second-hand vans, at vehicle auctions as the cost of vehicles are expected to increase.

This is due to the RMI Society of Motor Auctions (SMA), stating that auction houses will increase their price, due to the economic conditions that are restricting purchasing.

According to SMA head Louise Wallis, lower costs are only present when a higher level of sales is taking place. She also stated that the credit crunch, which puts a restriction on the amount of lending; is part of the cause of increased van prices.

She said: “Energy and business rates have both increased, as has the cost of insurance, labour and consumables. The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins."

Moreover, research from the insurance provider esure stated that 64 per cent of motorists in the UK would purchase a second-hand vehicle, than a new one the next time they go to purchase their motor.