UK Car Sales Surge Aided by Scrappage Scheme

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Publish date: 2009-11-18

October this year has seen record sales of new cars. All the numbers of sold new cars can be seen as assisted in a prevailing part by the scrappage scheme. The Society of Motor Manufacturers and Traders (SMMT in short) reported that an estimated 170.000 new cars were registered in the United Kingdom within the last month. It makes an increase of some thirty-two percent compared with October 2008. At the same time SMMT admitted that the "cash for bangers" incentive scheme had accounted for nearly twenty-one percent of the sales of new cars. The demand for new vehicles was also helped by all customers who wanted to avoid the increase in VAT which is intended to enter in force in January 2010. An increase in demand in both the fleets and business sector has also been noted. It may be critical in sustaining the recovery next year when the scrappage scheme will finish. The rise of purchasing power may also be treated as a sign that a significant number of consumers have greater scope and willingness to step up their spending. And this business fact, in turn, could be interpreted as weak signs of economic revival coming back to the Isles.

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