Grey auction specialists are reporting strong interest from franchised dealers amid predictions that grey imports are set to become more expensive.

According to Cap Grey Book, a range of new measures, including a tough safety test, will increase the cost of importing greys. It claims some analysts expect costs relating to the Single Vehicle Approval test to more than double.

Increasingly, franchised dealers are turning to greys as a way to supplement falling new car sales.

Auction Group, set up by Tim Charlesworth last June, has been selling some 100 greys twice a month from the Donington centre, Leics.

Mr Charlesworth claims franchised dealers account for around 10% of buyers and they tend to be the biggest spenders.

Grey auctions rival WCA also reports growing interest from the franchised market at its fortnightly auctions in Durham. The Irish firm specialises in Japanese sports cars, 4x4s and MPVs, aged three-to-five years old.