Car scrappage pushes up new car sales

‘The impact of the vehicle scrappage scheme is now being felt, with thousands of cars bought by consumers via the scheme now on the road,' says Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing the UK’s new car dealers, commenting on new car sales figures for July 2009.

New car sales for July 2009, announced today (Thursday 6 August 2009) show that 157,149 new cars were sold in July, 2.4% per cent up on July 2008.

According to Robinson, the scrappage scheme is having a positive effect on the whole market: ‘Car dealers are reporting that the scheme is continuing to provide a halo effect for overall car sales, and is helping increase footfall into showrooms by general buyers as well as scrappage buyers.’

Latest Government figures show that 144,308 cars and light vans have been bought through the scrappage scheme since it went live on 18 May 2009.

She adds: ‘With fleets not in the market for new vehicles at present, it is private buyers taking advantage of the scrappage scheme that are leading the revival. However, for sales to return to consistently positive levels in the medium to long term, business and general consumer confidence must be encouraged as much as possible.’