Scrappage scheme slows car decline

By staff

The government’s car scrappage scheme has succeeded in slowing the fall in new car registrations, figures out today show.

But the 176,264 units registered in June still represented a fall in 15.7 per cent.

Year-to-date demand slipped 25.9 per cent but June’s decline was the smallest since July 2008, the Society of Motor Manufacturers and Traders (SMMT) said.

“We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations,” SMMT chief executive Paul Everitt said.

“SMMT expects 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.”

The car scrappage scheme allows car owners whose vehicles are at least ten years old to receive a £2,000 discount when buying a new car.

The government and manufacturers are splitting the cost of the discount evenly.