GREY imports cars built for other countries which may not meet UK standards are set to go from strength to strength next year.

Imported cars are already cheaper than those made for sale in Britain, but they may become even cheaper because of an improved exchange rate with the Japanese yen, says the CAP Grey Book, the trade's guide to 'grey' imports.

Editor Robert Hester said: "There is a lot of speculation that the yen will be devalued next year in an effort to kick-start the ailing Japanese economy."

This would make cars cheaper to buy in Japan and therefore more attractive to those who export cars to the West's grey market.

"Forecasts suggest that there will be little difference in the number of cars coming into the country compared to last year, which is very encouraging," said Hester, who is clearly in favour of the grey market.

Other changes have occurred recently. "First, a loophole in the personal import regulations was closed," he said.

"This had allowed all sorts of cars to be brought into the UK, including many of a much lower grade than most dealers would ever consider.

"Then came the exposure of stolen grey imports which were allegedly entering the UK through Dubai."

Hester added that this had a big effect on the public perception of the market.

He said: "The introduction of an enhanced SVA (Single Vehicle Approval) test then forced dealers to meet more rigorous vehicle vetting procedures, which added to import costs."