UK Scrappage Scheme Boosts Car Sales

The Society of Motor Manufacturers and Traders (SMMT) have reported that the UK scrappage scheme is proving hugely popular and is working well.

Since the scheme started on 18 May 29,796 vehicles have been registered. 9.7% (17,014 units) of June’s new car registrations where due to the scrappage scheme.

In the commercial vehicle sector, 323 vans were registered under the scheme, accounting for 1.9% of the total scrappage registrations and 1.9% of overall van registrations in June.
SMMT chief executive, Paul Everitt commented:

“The scrappage incentive scheme is working well and has encouraged a lot more people back into showrooms. In the coming months, we will see an increase in the rate of deliveries and this will confirm further progress on the industry’s long road to recovery.”

The SMMT reported the top selling cars for June were:

Ford Fiesta
Ford Focus
Vauxhall Corsa
Vauxhall Astra
Peugeot 207
Mini
Volkswagen Golf
Ford Mondeo
Vauxhall Insignia
BMW 3 Series

The UK’s scrappage scheme gives car buyers a £2,000 discount on a new car if they scrap one that is at least 10 years old. The buyer must have been the registered owner, for at least 12 months, of the car that is due to be scrapped.

The scheme will run until March 2010 with half the scheme's cash is being paid for by the government, with the remainder being contributed by the manufacturers.

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This Latest News article was created on 6th July 2009