Car insurance customers should make sure they know the potential value of their vehicle to achieve the best price when selling it. That's the advice coming from financial experts as it's revealed 3.7 million people in Britain plan to buy a second-hand car in the six months to the end of February 2010.

According to researchers at Sainsbury's Finance, a total of nearly £20 billion will be spent by UK car insurance customers, at an average of £5,323 each.

The firm's Steven Baillie points out that the figure marks a drop in the quantity spent on second-hand cars in the previous six months, something he says could be down to the government's car scrappage scheme encouraging people to buy new vehicles instead.

"It can, of course, be significantly cheaper to buy a second-hand car but buyers and sellers could save even more money if they do their homework," he notes. "Sellers should, for example, ensure they understand the car's value in relation to the market so that they get the best deal."

He also recommends that buyers haggle to save "hundreds or even thousands of pounds". Geographically, Scotland has the highest percentage of car insurance customers intending to buy a second-hand car.

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