Car scrappage scheme begins to make effect - Car insurance - News - Moneyfacts

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Car scrappage scheme begins to make effect

Car scrappage scheme begins to make effect

Category: Car insurance

Updated: 26/11/2012
First Published: 04/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The rate of decline in the car market was at its least severe for almost a year in June, with the car scrappage scheme seemingly beginning to have a positive impact.

While new car registrations fell by 15.7 per cent last month to just over 176,000 units, the fall was actually the smallest recorded since July last year, according to the Society of Motor Manufacturers and Traders (SMMT).

While year-on-year figures are still markedly down – June's figures represent an annual decline in new car registrations of almost 26 per cent – the SMMT had expected the market to decline further in line with April's forecast of 153,000 units, which has actually been bettered by 15 per cent.

The group says that, while the impact of the scheme will be delayed, the car scrappage initiative is starting to have an effect on the sector.

"We are now beginning to see the positive impact on the scrappage scheme translate into new vehicle registrations," said Paul Everitt, chief executive of the SMMT."

"SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery."

Figures show that registrations to private buyers rose for the first time since November 2007 last month, increasing by almost four per cent. Compare car insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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