Car Scrappage Pushes Up New Car Sales in August

LONDON, UNITED KINGDOM – September 4, 2009: ‘With car sales continuing to grow as a result of the vehicle scrappage scheme, Government must consider an extension to enable consumers and business to gain full benefit from the initiative,' 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 August 2009.

New car sales for August 2009, announced today show that 67,006 new cars were sold in August, 6 per cent up on August 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 185,273 cars and light vans have been ordered through the scrappage scheme since it went live on 18 May 2009. With sales continuing to grow, the Government’s £300m funding for the scheme is expected to be exhausted before the end of the year.

Robinson adds: ‘The scheme has been highly successful, but with the retail economic climate still fragile, demand still growing, and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital. ‘