The Ford Focus - Car Scrappage Scheme Big Winner

August Car Sales – The Best Sellers
1  Ford Focus 4,366
2  Ford Fiesta 2,968
3  Hyundai i10 2,431
4  Vauxhall Corsa 2,031
5  Volkswagen Golf 1,832
6  Peugeot 207 1,558
7  BMW 3 Series 1,482
8  Vauxhall Astra 1,355
9  Vauxhall Insignia 1,334
10 Toyota Yaris 1,331
Source: SMMT
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The Society of Motor Manufacturers and Traders (SMMT) stated there was a clear link between the Car Scrappage Scheme and sales increase with the smaller fuel-efficient models benefitting the most.

However, despite displaying resilient and determined chararcteristics, total car sales since the beginning of 2009 are still down by 21.5% compared to the same period for 2008. This demonstrates the severity of the recession and also provides an indication of how low car sales would have been if the Car Scrappage Scheme had not been launched.

“The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead,” commented SMMT Chief Executive Paul Everitt, who also added “It is essential that these early signs of recovery are sustained into 2010,” he added.

Compare and contrast the month of August, which typically accounts for nearly 3.3% of annual new car registrations, whereas September typically takes up to 17% of new sales. Based on these historical sales figures, September will provide a key test and indicator for the motor industry’s future when the new ‘59′ number plates are introduced.

Ford Focus zooms to No. 2

New car sales data published for May shows a shift towards the £10k or less tranche of the market in comparison to sales in April.

The Ford Fiesta, available at under £8k thanks to a £2,500 scrappage discount, topped the list for the Month of May, pushing the slightly more expensive Ford Focus down to 2nd place, which with a £4,000 reduction currently retails at under £10k.

Whilst the relatively inexpensive Corsa, Golf and Astra continue to occupy positions 3 to 5 respectively, the equally economical Peugeot 207 now resides at 6th in the table, one place up from April.

Top 10 Selling New Cars for May ‘09
May sales figures in brackets ()

1 Ford Fiesta – (7,040) around £9,795
2 Ford Focus – (6,693) around £12,295
3 Vauxhall Corsa – (5,525) around £10,000
4 Volkswagen Golf – (3,961) around £13,585
5 Vauxhall Astra – (3,549) around £14,865
6 Peugeot 207 – (3,103) around £8,740
7 BMW MINI – (2,650) Mini Cooper OTR Price around £13,715
8 Ford Mondeo – (2,647) around £12,895
9 Nissan Qashqai (2,629) around £12,200
10 Vauxhall Insignia – (2,602) around £17,130

Source: SMMT. *OTR = On-the-road. Above prices may vary so check details and finance with individual manufacturers and dealerships.

Fiesta Zetec - Small is popular!

Further proof of the flight towards the lower-cost market are the new arrivals into the top 10 of the BMW Mini and Nissan Qashqai, which have ousted the Audi A3 and Vauxhall Zafiri. Additionally, the Vauxhall Insignia which had been the 6th biggest new car seller in April now comes in at number 10 and despite a +£4k scrappage discount, currently retails above £13.5k.

New Arrival at No. 7 - BMW MINI

Outside of the top 10 Hyundai, who has made its i10 1.2 Classic available from under £5k, said sales in May rose 36.6% to 3,325 and new orders totalled 9,000. In an average month between 1,200 and 1,600 orders would be taken by the manufacturer.

And the top 10 for June is likely to reinforce this trend towards the less expensive end of the new car market as this will be the first full month in which the Car Scrappage Scheme has been in place.

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Whilst the purchase price of a top 10 best selling new car averages £12,522, it is also worth considering the following rate of car sales per day. The SMMT released UK car sales for May 2009 showing a major fall of 24.8% to 134,858 compared to May ‘08. This equates to an average mean figure of 4,350 car sales per day, which at an average top 10 price of £12,522 gives a total UK car sales figure for May of over £54m per day. Still seems a big number for a recession hit Britain? And this figure does not take into account finance costs, insurance and road tax, which would have probably raised this overall estimate.