Confused.com: June new car registrations

Will Thomas, head of motor at Confused.com, says: "Despite criticisms, the car scrappage scheme seems to have made an impact on the rate of decline in the car industry. June's decline was the smallest since July 2008.

"The scheme is helping to get older vehicles off the road and persuading drivers to switch to safer, greener vehicles. Drivers using the scheme will choose smaller cars, meaning less carbon dioxide emissions, lower fuel consumption and lower running costs, as a direct result.

"However, it's worth drivers bearing in mind that the initial ‘bonus' from the scrappage scheme could be wiped out in depreciation within the first few months of purchasing a car from new. The average car will have lost around 60% of its value by the end of its third year. It may be worth considering ‘gap' insurance policies which bridge the difference between today's value of a new car and the standard comprehensive insurance policy pay-out."