Scrappage scheme proves successful as car sales rise
The ailing car industry has received a major boost today after figures from the Society of Motor Manufacturers and Traders (SMMT) revealed a rise in new car sales.
According to the SMMT, the rise was due to the Government’s car scrappage scheme, branded ‘bangers for cash‘. The scheme, launched on 18 May, pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly car.
The SMMT said a total of 157,149 new cars were registered in July, up 2.4% when compared with July last year, due to a rise in private buyers, which grew for the second successive month, by 33.4%.
However, the figures did show that sales of cars to businesses plunged by 16% – from 95,018 to 79,238, as companies are excluded from the scrappage scheme.
Furthermore, while today’s figures were 10% above forecasts, it must be noted that it is still 10% below the average for the month over the last decade.
Commenting on today’s figures, Paul Everitt, SMMT’s chief executive, 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 industry still faces a long road to recovery and we urge Government to take action to sustain economic recovery through easing access to finance and credit and delivering the loan guarantees set out by the automotive assistance programme,” added Mr Everitt.
Ford’s Fiesta and Focus models and the Vauxhall Corsa were July’s best sellers, selling 8,976, 7,934 and 5,934 units respectively.