New car sales bolstered by scrappage scheme
New car sales saw biggest increase this year in October, bolstered by government's scrappage scheme
Also In The News
|
By Michael Younger. |  |
Thursday, 05, Nov 2009 12:59
By Sarah Garrod
New car sales rose for the fourth consecutive month in October, seeing their biggest increase of the year so far.
Manufacturing was bolstered by the government's recently extended scrappage scheme, which accounted for 20 per cent of the new car sales.
The Society of Motor Manufacturers and Traders (SMMT) said 168,942 new cars were registered last month, an increase of 31.6 per cent compared to October 2008, with Ford's Fiesta leading the way.
The best selling cars of 2009, according to the SMMT, have so far been Ford's Fiesta and Focus, closely followed by the Vauxhall Corsa. The Fiesta has so far sold 101,392 units.
Nigel Sharp, Ford Britain managing director, said: "Notching up over 100,000 sales this year is a significant milestone for the Fiesta, and we're delighted. Fiesta exemplifies our fresh and exciting product line-up which, together with an outstanding dealer network, has helped to increase our UK market share."
Registrations for the year to date stand at 1,685,981, down 12.3 per cent, however, in October private demand was up 86 per cent.
The Cash for Bangers scheme sees buyers receive a £2,000 discount when they trade in a car which is more than ten years old for a new one. The cost is shared between the motor trade and the government, which is similar to scheme in the US and Germany.
Paul Everitt, SMMT chief executive: "We have seen additional demand created by the extension of the scheme and customers wanting to avoid the VAT increase planned for January. Encouragingly, there has also been an increase in demand in the fleet and business sectors, which will be critical in sustaining recovery next year."
While the Institute of Advanced Motorists (IAM) has said today that scrappage is not just good news for stimulating industry: "New cars have better safety technology, such as traction control and EuroNCAP four or five star crash ratings, as well as lower emissions levels and reduced fuel consumption. They are also cheaper to insure and run.
"The scheme has not only put new cars on the road, it has taken old bangers off it. It will undoubtedly save lives in the future and, with fatalities costing the economy £1.8 million each, it could represent a significant potential saving for the taxpayer, more than covering the costs of the scheme itself," Neil Greig, IAM director of policy and research, said.