Sales rose to 1,388,136 as a result of double digit increases in four of Europe’s biggest five markets, with Germany leading the way in percentage terms and the UK in volume.

The European Automakers Association (ACEA) reported that Germany saw a 21% increase in sales, lifting volumes to 316,166 in the month while the UK hit 367,929 new registrations, representing an 11.4% improvement. Spain meanwhile shifted 77,374 units, reflecting an 18% hike with France also up, 14% to 183,110.

The governments of all four countries have actively supported car manufacturers by offering car buyers car scrappage incentives and discounts worth thousands of euros/pounds if they trade in their old cars for newer, more fuel efficient models.

Sales Plunge In Non-Scrappage Scheme Countries

In contrast, in countries where such car scrappage schemes have not been in operation, car sales have been hit hard by the recession. Ireland suffered a 34.7% drop in new car registrations in September, whilst Romania new car sales dropped a hefty 74.5%.

For the full year however the picture is different across Europe, with overall new sales down 6.6% to 10,946,161. Only the first few countries to run car scrappage schemes have seen an increase in sales for the first nine months of the year, with new registrations up 26.1% in Germany, 6.7% in Austria and 2.4% in France.

The EEF has recently issued a letter to the Chancellor Alistair Darling claiming the Car Scrappage Scheme had helped reduce the fall in UK car production while retaining skilled jobs. Director of policy, Steve Radley confirmed; “The success of the Car Scrappage Scheme has been clear for all to see by putting a floor under manufacturing recession and helping retain skilled employees.”

However, a caveat was also included – as the EEF stated it was uncertain consumers would continue with their demand for new cars if such scrappage incentives were to cease. It further added; “It is by no means certain that this positive trend will continue in the near future with consumer confidence still fragile and unemployment still rising. Failure to extend the (Car Scrappage) scheme before a stronger recovery is in place runs the risk of pulling the rug from under the sector, damaging supply chains and prospects for a better balanced economy in the upturn.”

As recently reported by the Car Scrappage Team, the Society of Motor Manufacturers and Traders (SMMT) has also called on the Government to extend the scrappage scheme. The SMMT was quoted last month as stating the £300m scheme fund was likely to run out by the end of October and has therefore called on the Government for an extension to February 2010. But a more startlingly estimation has been offered Deloitte, which claims the scrappage scheme fund could be all-but-gone within the next week.

The latest Car Scrappage Scheme Survey has revealed some intriguing statistics. 70% of those surveyed are eyeing deals offered by dealerships by looking to trade in their old motor. It could be a summer of activity in the showrooms.

Potential punters appear to be looking at deals amongst the lower market brands, such as the Ford Ka. And always one for a deal, our UK consumer is finding that the scrappage scheme discount of £2,000 is a larger percentage of the overall purchase price for an economical car compared to the higher market models, therefore offering better value.

Furthermore, punters may also be finding that car loans for smaller sums are easier to secure with lenders.

Hyundai is reporting that enquiries are up 400% at its dealerships since the scheme was announced, whilst Ford say that its car scrappage scheme section went live on its website, as many visits were received as to its most popular page within just a few days.

Similarly, Toyota are reporting ‘major increases in traffic’ to its website, Audi have noted significant interest in the scrappage scheme area of its website and Peugeot dealers are getting 60 to 80 more enquiries as well as a ‘massive increase’ in website traffic since the scheme was announced.

Nissan are seeing more visits to its dealerships since the Budget announcement although many of the visitors we trying to find the cheapest car possible. If this is the trend through the industry, it points towards the likelihood that stimulus will not be to the whole of the industry, but rather skewed towards the cheaper end of the market.

It is widely expected that May 18 is the date from which the scheme will commence, with an official announcement expected imminently.