New Car sales boosted by scrap scheme
New car sales figures rise for first time since April
The Society of Motor Manufacturers and Traders (SMMT) have reported that there is a much needed increase in new car sales. The report claims that a total of 157,149 new cars were registered in July which is an increase of 2.4% on the July 2008 figure.
The SMMT claim the rise is due to the Governments “cash for bangers” car scrappage scheme which was introduced earlier this year. The scheme is scheduled to last until February 2010 or until the 300 million pounds of government funding expires. The government is contributing 1,000 pounds per car to its scrappage scheme while the industry provides a similar amount.
SMMT chief executive Paul Everitt said "The impact of the scrappage scheme is clear and we are encouraged by the positive impact it has had, increasing new car registrations for the first time since April 2008.
The July figures are still 10% below average for July over the last ten years and even though there was a rise in new car sales last month the SMMT still expects sales to fall 14.4% to 1,825,000 in 2009 and to decline a further 5% in 2010 to 1.73 million.