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Scrappage scheme proving a roaring success

Scrappage scheme proving a roaring success

Category: Car insurance

Updated: 26/11/2012
First Published: 06/10/2009

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 It is now over 6 months old so the content may be out of date.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 scrappage scheme whereby car buyers can have £2,000 knocked off a new model continues to galvanise the automotive industry, as sales rose for the third consecutive month in September.

New car registrations leapt to almost 368,000 units last month – an increase of 11.4 per cent on the same period last year. Actual results were far improved on a modest growth forecast of just 2.5 per cent.

Part of the upturn is due to the new 59 plates that became available from 1 September. The Society of Mortar Manufacturers and Traders (SMMT), which released the figures, has said that September is likely to be the largest month for sales this year, accounting for 20 per cent of all new registrations in 2009.

It will mark a sea change from previous five years, when March has been the strongest month for sales.

As has been the case previously, the mini and supermini segments of the automotive market were popular in September, with the Ford Fiesta the best selling model.

"New car registrations rose for the third month in a row in September. Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme," said Paul Everitt, SMMT chief executive.

"The extension of the scheme will help to sustain demand through the latter part of this year and into 2010. This will allow economic recovery to strengthen and safeguard valuable industrial capability."

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