Scrappage Scheme Means A Big Boost for Mini Market

The BMW Mini - Major Sales

Year-on-year new car registrations fell by nearly 16% in June, compared to the 25% fall in May. However, the Car Scrappage Scheme has started to have a positive affect on the UK motor industry with this fall in sales being the smallest since July 2008.  

The Society of Motor Manufacturers and Traders (SMMT) confirmed 176,264 units (cars and vans) were sold in June, with the Scrappage Scheme, which commenced on 18 May, accounting for approximately 10% of these sales.

Interestingly, private buyer registrations increased 3.9% year-on-year – recording the first rise since November 2007.

The SMMT also confirmed 29,796 vehicles had been sold under the Car Scrappage Scheme since commencement, while Government statistics state that c.87,000 orders had been placed up to 21 June 2009.

As predicted by the Car Scrappage Team, buyers have used the Scrappage Scheme to purchase the smaller, fuel efficient cars, with the “mini” market achieving 145.4% growth over the year and the “super-mini’s” making a record 37.2% share of this market.

Having initially planned for the scheme to last until March 2010, the Department for Business, Innovation and Skills stated that the Scrappage Scheme would effectively be exhausted by the end of October based on the current buying rate.

Industry experts and car dealers have petitioned the Government to extend the scheme as has been done in Germany. However, at present the Government department has no plans to extend it.