Car Scrappage Scheme Drives Registrations Up

Car Finance Calculator

Thu, 20 Aug 2009

New vehicle registrations have increased for the first time in over a year thanks to the introduction of the government’s scrappage scheme .

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that car registrations grew by 2.4 per cent in July, increasing from 153,420 to 157,149 - the first rise since April 2008.

The figure also exceeded experts forecast of 142,300 registrations for the month, showing that the market is performing well above expectations.

However, it is still short of the 1999 to 2008 July average of 174,879 new car registrations .

According to SMMT, there were also big improvements in the private market last month, with registrations to private buyers rising for the second month in a row, up by 33.4 per cent in July.

SMMT chief executive Paul Everitt commented: "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 2008."

"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 ."