The UK's motor trade insurance holders will experience a challenging 2010, according to one sector expert.

According to Glass's Guide, the country's used car market will not be as buoyant as last year, with supply shortages, tighter trading margins and limited retail demand all having an impact on the sector.

Adrian Rushmore, managing editor of the guide, pointed out that motor trade insurance holders saw a reduced supply of used cars in 2009, which led to a rise in prices, despite a seven per cent drop in retail sales.

"The situation will be compounded by the fact that, in the main, dealers are unlikely to be heavily incentivised to put on demonstrators or undertake self-registrations, though specific activities will vary considerably by manufacturer," the expert said.

Another factor affecting motor trade insurance holders in 2010 is likely to be the end of the scrappage scheme, as the government has revealed that there are only 82,000 places left in the initiative.

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