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Scrappage scheme sparks registrations growth

Scrappage scheme sparks registrations growth

Category: Car insurance

Updated: 26/11/2012
First Published: 07/08/2009

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 It is now over 6 months old so the content may be out of date.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 scheme appears to be having a positive effect, with latest figures showing new vehicle registrations have increased for the first time in over a year.

Car registrations grew by 2.4 per cent in July, increasing from 153,420 to 157,149, according to the Society of Motor Manufacturers and Traders (SMMT), marking the first rise in the market since April 2008.

While, the annual figures still show a steep decline – 22.8 per cent – the market is performing well above expectations. Experts had forecast 142,300 registrations last month – 10.4 per cent down on actual figures.

Between 1999 and 2008, the average number of new car registrations in July was 174,879.

Big improvements were evident in the private market last month. Registrations to private buyers increasing for the second month in a row, with a 33.4 per cent gain recorded in July.

"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," said SMMT chief executive, Paul Everitt.

"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."

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 Any products featured may be withdrawn by their provider or changed at any time.

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