Used car dealers have said they will focus on lower mileage, smaller, more economical engines and higher specification cars in an attempt to boost sales.

Diesel engines are also continuing to rise in popularity, with just over half of dealers questioned saying that they are currently seeking to stock more diesels than they were 12 months ago.

Colin Whelan, business research manager for CAP, which carried out the survey, said dealers have enjoyed a strong start to the year and are determined not to allow gloomy headlines about the economy to distract them from the business of winning retail sales.

He added: “Dealers understand that many retail car buyers are increasingly demanding in their choices of used cars.

“They are favouring high levels of equipment, strong image, individuality and low running costs.”

Around 18% of used car dealers said they expected to sell significantly fewer used cars this year compared with 2007.

Nearly a quarter believe this year’s retail used car market will be little different from last year, while 36% acknowledge there may be some reduction in sales but that they are not seriously concerned about their retail prospects.