Sales of New Cars Grow Despite End of Scrappage Scheme

Manufacturers have been offering post scrappage deals, which have helped to boost sales and keep them ahead of 2009. There were many concerns over how the end of the scrappage scheme would effect new car sales. This is great news as the VED tax was also introduced in April, which was also predicted to have a negative effect on sales.

Sales in April were 11.5% up on 2009, which is a good indication that the industry is moving in the right direction. The scrappage scheme during April amounted to only 8% of total sales, with the carmaker incentive schemes really helping to boost overall sales. Kia, Hyundai and Seat are all experiencing significant growth for the year, due to strong sales of small cars.

It will be interesting to see how the industry is supported over the coming months with the formation of the new government. What we need is the economy to experience strong growth to generate an increase in consumer confidence. Ford and Vauxhall have had large drops in sales based on last years performance, with sales being 22% down for Ford and 11% for Vauxhall.