Car scrappage scheme 'has been a significant new car registration

Date: 11/12/2009

The UK's car scrappage scheme has been a significant stimulus to new car registrations during a turbulent time for the UK economy.

This is the view of an organisation that represents the interests of the retail motor industry.

Sue Robinson, director at Retail Motor Industry Federation (RMI), noted that the Department of Business, Innovation and Skills has recently been notified that 22,898 orders for new vehicles have been made under the new scheme.

The director said the majority of these vehicles are unlikely to have been sold were it not for the scrappage scheme.

Ms Robinson added that the initiative is likely to continue to be an important stimulus, particularly when the planned VAT increase kicks in.

"The RMI is considering a campaign for an extension of the scrappage scheme, following a meeting with dealers in January we will announce our policy for the coming months," Ms Robinson revealed.

According to statistics from the Society of Motor Manufacturers and Traders, scrappage accounted for 21.6 per cent of all new car registrations last month.