Independent car retailers are being advised to stock up on smaller, high-spec cars to cope with increasing demand caused by high fuel prices.

Analysts at Vehicle Remarketing Solutions believe the market in nearly new and used small cars will strengthen this summer as buyers are attracted by more economical transport. Unleaded and diesel prices have already passed 90p a litre in many regions.

Mike Pilkington, managing director, says his company has seen increased interest from dealers in de-fleeted smaller-engined petrol and diesel cars. “We believe that retail demand is driving this trend and it only looks set to continue,” he says.

Pilkington believes independent dealers are ideally positioned to capitalise as they “have a free hand” in selecting vehicles for the forecourt.

Good specification is important to ensure a prompt resale as many buyers now require air-con, alloy wheels and a CD-player as a minimum.