Rush for second-hand Priuses

London drivers who have invested in environmentally friendly vehicles are being encouraged to cash in on a wave of demand for "green" second-hand cars.

One major dealer has written to Toyota Prius owners offering them £1,000 above usual market values to part with their cars, in a bid to meet a flood of demand from customers.

A spokesman for Jemca in Edgware Road said: "There is high demand for used Priuses because of mounting fuel and tax costs. People know they can save around £3,500 a year by driving a hybrid and there are not enough to go round. We are offering-extra to customers who have used ones as a result."

Prius driver Simon Mason of Islington said: "I received a letter from Jemca offering me over the odds for my car.

"Clearly they were unable to satisfy demand for these cars on the used market. But given that most Prius drivers choose their car because of the ongoing savings benefits, I think it is unlikely many will be tempted to part with them for £1,000 extra. After all, they'll still have to replace them with something else."

David Brennan, managing director of car leasing giant LeasePlan UK, said: "It's no surprise that demand for the Prius is at an all-time high. Drivers in London want to avoid paying the congestion charge, which means they need alternative-fuel vehicles like hybrids.

"Company car drivers have been forced into low-emission cars for years due to the tax system, but now private drivers in London are also looking hard at greener vehicle options.

"I would expect to see demand for hybrids and low-CO2 diesels continue to increase," he said.

British Car Auctions has also uncovered evidence that motorists who previously bought "clean" cars are now benefiting financially.

It said second-hand values for LPG cars were significantly higher than anticipated, with some now selling for up to 15 per cent more than forecast.

By contrast, auctioneers report that second-hand values for diesel and petrol models have fallen steadily this year. However, the desirability for more miles per gallon in the face of record world oil prices has seen the value of second-hand diesel cars fall more slowly than their petrol equivalents.

BCA spokesman Tony Gannon said: "There is a groundswell of interest in alternative-fuelled vehicles in a market that is otherwise seeing values in decline.

"This is being driven by the credit crunch and rising fuel prices, which are persuading more motorists to try LPG or hybrids for the first time."