Cash for bangers boosts motor sales
The government scrappage scheme has kick started the motor industry, with new orders up by more than 35,000.
Figures released today showed since the £2,000 scrappage was introduced there has been one scheme order in every five new car orders.
The cash for bangers scheme was introduced in the April Budget, and came into force on May 18th. It was intended to support the car industry, boosting sales and encouraging motorists to exchange older cars for newer more environmentally conscious models.
This morning the Prime Minister Gordon Brown welcomed three new car buyers who had used the scheme at Downing Street. He said: "I am determined to do everything I can to see Britain through the downturn quickly and build a stronger Britain for the future.
"That is why I am delighted that over 35,000 people have already taken up the government's offer of help to buy a new car when they scrap their old one. This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars."
When the scheme was launched just a few weeks ago, the Society of Motor Manufacturers and Traders (SMMT) told myfinances they would be waiting for the June figures to be released before scrappage could be hailed a success or not.
At the time, John Procter, spokesperson for the SMMT said: "We will be keen to see how it works in practice, but we'll have to wait for the monthly figures in June to get a realistic sense of how well it works".
It is unclear at this time if the number of early adopters of the scheme is being boosted by those who had held off from making a purchase until the initiative was up and running.
The scrappage scheme uses £300 million from the government with matched funding from manufacturers - meaning the budget for the scheme covers 300,000 cars.
The business secretary Lord Mandelson said earlier today that the sales figures were already "impressive".
Sue Robinson, director of the Retail Motor Industry Federation (RMIF), said: "The incentive scheme is helping the industry revive sales, while also helping consumers get into a new car. This is a double win.
"The RMIF is conducting a study of the impact of the scheme by surveying the reaction seen by dealers. The results of the survey will be published next week."
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