Around £2,000 might become the new entry price for used car for many dealers as a result of the Consumer Rights Act, the RAC has said.

The reason for this is that it may prove difficult to sell a car that meets all the legal requirements at much below this price.

Sean Kent, director, corporate and independent dealers, at RAC, said: "What we are hearing increasingly from independent dealers is that the cost of acquiring a car and selling it to the standards required by the Consumer Rights Act is difficult to achieve for much below this figure.

"It is not a hard and fast rule but it is definitely a trend that we are increasingly seeing across the market and chimes with other recent reports that small franchise dealers have abandoned the sub-£1,500 sector."

As a result, Kent said, the RAC had seen a number of dealers move into a slightly higher price bracket and change their proposition.