Car sales are up in November! Industry figures from the Society of Motor Manufacturers and Traders (SMMT) have shown a near 60% increase in sales compared with November 2008. New car sales have now increased month on month for the last five. There were 158,082 cars registered last month and this year 1.84 million cars have been sold – a fall of just 8.8% from the same period in 2008.
The scrappage scheme introduced by the government has played a key part in this according to people in the trade. Under the terms of the scrappage scheme any vehicle over 10yrs old can be traded in for a £2000 discount against a new model.The government announced in September the car scrappage scheme would carry on to the tune of £100m.
The SMMT puts the new cars registered increase down to the scrappage scheme and the fact that purchasers are trying to avoid the upcoming VAT rise by buying now. Although critics say that the market is being sustained by the scrappage scheme, optimists in the motor trade are hoping that these recent figures are pointing to an economy at least on it’s way to recovery.
I guess the proof is in the pudding and we’ll find out who’s right shortly after the end of the scrappage scheme & the raise in VAT. Let’s keep our fingers crossed!