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Scrappage scheme eases decline in new car sales

Figures show lowest monthly drop since July 2008

The scrappage scheme seems to be easing the decline in new car sales

The scrappage scheme seems to be easing the decline in new car sales

The scrappage incentive scheme is helping to slow the decline in new car sales, according to official figures.

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Last month 176,264 new cars were sold in the UK – 15.7% less than in June 2008, the Society of Motor Manufacturers and Traders (SMMT) said.

But the month-on-month decline in new car sales was the smallest since July last year.

‘Positive’ scrappage scheme

The , which gives drivers who scrap cars over 10 years old the chance to save £2,000 on a new model, was launched on 18 May. This means the June figures reflect the first full month since the scheme started operating.

SMMT chief executive Paul Everitt said: ‘We are now beginning to see the positive impact of the translate into new vehicle registrations.

‘We expect the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery.’

More cars sold

In April the SMMT predicted June sales would fall to around 153,000 units, but the actual June figure was 15% higher. And, the latest numbers show, private buyer registrations were up 3.9% last month – the first rise in this sector since November 2007.

Demand for efficient like the continued to grow in June, with the mini segment taking a record 37.2% share of the market.

Despite the improved figures for June, new car sales for 2009 are still down 25.9% on the total for January-June 2008.


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