New car registrations set to rise again
Figures due to be released tomorrow by the Society of Motor Manufacturers and Traders (SMMT) are expected to show the third monthly increase in new car registrations in September as consumers take advantage of the scrappage incentive scheme to bag a new 59 plate model.
SMMT said the recent extension to the scheme was an extremely important decision that would give more consumers access to it and should help to counter the likely negative impacts of a return to the higher rate of VAT and the introduction of first year road tax rates.
Since the introduction of the scheme, more than 100,000 new vehicles, most of which SMMT reckons represent additional sales that would not have otherwise happened, have been registered – 20% of them either built in the UK or with an engine produced here.
The scheme is largely self funding with the 15% VAT paid on a car bought for £7,650 covering the £1,000 government contribution.
The average car scrapped under the scheme is 12.6 years old with average CO2 emissions of 181.9g/km – 27.6% higher than its replacement.
