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| Car Scrappage Scheme Date: 07-08-2009
The recently introduced car scrappage scheme has started to have a positive impact on the industry as new car sales fell at their slowest rate for almost a year.
New car registrations fell by 15.7% in June compared with the same month last year, considerably less than May's 25% drop. The Society of Motor Manufacturers and Traders (SMMT) said 176,264 units were sold throughout June.
The scheme, that came into effect on 18 May this year offers a £2,000 incentive to scrap and recycle old cars and has accounted for about 10% of sales across the board. Car buyers are given the £2,000 discount on a new car if they scrap one that is at least 10 years old. Half of the money will be paid by the government and half by the car industry. The SMMT said almost 30,000 vehicles had been sold under the scheme since its inception, while government figures show that, up to 21 June, around 90,000 orders had been placed.
The scheme has come under fire from Friends of the Earth however; who cite is as a lost opportunity as the scheme was not designed with any inbuilt green measures. There are similar schemes in France and Italy where the amount of discount applied is linked to the emissions produced by the car being purchased, the greater the emissions, the less discount. |
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