Car Sales increased dramatically in Aug, all thanks the Government Scrappage Scheme!!!
The Top 10 Selling Cars in Aug 2009
· Ford Focus 4,366
· Ford Fiesta 2,968
· Hyundai i10 2,431
· Vauxhall Corsa 2,031
· Volkswagen Golf 1,832
· Peugeot 207 1,558
· BMW 3 Series 1,482
· Vauxhall Astra 1,355
· Vauxhall Insignia 1,334
· Toyota Yaris 1,331
The UK scrappage scheme continued to help new car sales in August with sales up 6% from a year ago, the second consecutive month of growth.
The number of new cars sold in the UK in August was 67,006, the Society of Motor Manufacturers and Traders said. It attributed the rise to the scrappage incentive scheme, worth £2,000 a car, which came into effect in May.
However, total sales since the start of 2009 are still 21.5% lower than the same period last year. The SMMT said that the incentive scheme had boosted demand, particularly for smaller cars.
"The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead," Paul Everitt, SMMT chief executive, said.
Driving the improvement were private sales and smaller vehicles, reflecting the popularity of the government's car scrappage scheme. Under the UK scrappage scheme, a £2,000 incentive is paid to motorists who scrap cars registered before 31 August 1999 to buy a new car.
Car scrappage scheme have boosted vehicle sales around the world. Sales in Germany, Europe's largest market, leapt 28 percent last month. The United States, France and Japan have also reported an significant increase.
Half of the money is paid by the government and half by the car industry. However, car industry representatives fear that once the £300m set aside for the scheme by the government runs out, sales could turn lower.
The Retail Motor Industry Federation (RMIF) says the funds could be exhausted by the end of the year.
"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," said Sue Robinson, RMIF director.
Britain's scrappage scheme is due to end in February 2010 but could end sooner if the 300 million pounds the government has earmarked for the project is exhausted. More than half of the funds have already been spent and the government has said it has no plans to extend the scheme.
"We are please to see the scrappage scheme is delivering against its aims," a government spokesman said. "People should get their orders in quickly as this scheme will not last forever."
August is traditionally a quiet month for car sales as buyers wait for number plates to change in September.
