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Growth in new car registrations sustained

Growth in new car registrations sustained

Category: Car insurance

Updated: 26/11/2012
First Published: 05/11/2009

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 It is now over 6 months old so the content may be out of date.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 Government's Scrappage Incentive Scheme continues to have a positive impact, with registrations of new cars increasing for the fourth consecutive month.

Compared with October last year, the number of new registrations increased by almost a third (31.6 per cent), reflecting the effect the scheme is having, according to the Society of Motor Manufacturers and Traders (SMMT)

In October, 168,942 new car registrations were made, taking the 2009 total to 1,685,981, although this is still down overall compared with 2008.

"October has seen this year's biggest monthly increase in registrations with the successful scrappage scheme accounting for over 20% per cent of them," said Paul Everitt, SMMT chief executive.

"We have seen additional demand created by the extension of the scheme and customers wanting to avoid the VAT increase planned for January. Encouragingly, there has also been an increase in demand in the fleet and business sectors, which will be critical in sustaining recovery next year."

hile the market had been expected to increase, the rise was actually greater than had been predicted. Volumes were 3.9 per cent ahead of the 1999-2008 October average of 162,658.

The SMMT said registrations are expected to continue to grow in the final two months of the year, ending 2009 at around 1.928 million.

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