The Warranty Group says used car dealers need to match up their offers with new budget cars such as the Dacia Duster, which comes with a three-year/60,000-mile warranty.

With Volkswagen confirming that it has plans for a Dacia-like brand, used retailers will be soon face stiffer competition for pragmatic consumers.

Sales and marketing director at The Warranty Group, Ian Simpson, said: “Budget brands look set to become a feature of the new car market and will inevitably have a knock-on effect on the used sector.

“A buyer for a £10,000 used BMW is not going to be considering a Dacia Duster. However, someone looking at a two-year old family soft roader from a mainstream brand is perhaps different.

“For that buyer, the comfort of a three-year manufacturer warranty will be very much part of the buying decision, so used car retailers may well have to consider matching the budget new car proposition.”