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Car industry receives late 2009 sales boost

UK car sales rose by 57.6% in November compared with a year earlier, with 158,082 cars registered last month, the Society of Motor Manufacturers and Traders (SMMT) revealed.
 
So far this year, 1.84 million cars have been sold in the UK, 8.8% lower than at the same point last year. However, the Government's scrappage scheme has helped drive car sales, in what has been a financially straining year.

Encouraging signs revealed that new car sales have increased year-on-year in each of the past five months, with the scrappage scheme accounting for 21.6% of all new car registrations in November.

The SMMT expects this year's sales total to be above 1.95 million, only slightly lower than the 2008 figure of 2.13 million.

Drivers wary of being stung by the impending rise in VAT and the end of the government’s car scrappage scheme next year have decided to make their purchases now while incentives still remain. However, Auto Trader recently conducted research finding that up to 12 million adults in the UK are unaware of the imminent rise in VAT.

The increase in new car registrations in November reflects the positive impact of the scrappage scheme and customers avoiding the VAT increase in January. With Christmas approaching, December is not anticipated to be demanding on sales, with most dealers preparing for 2010 promotions and offers.

Interest will be high amongst consumers to see how manufacturers respond as the scrappage scheme starts to end and VAT rises.

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