New car sales fell for the 11th month running in April - the same month as the £2000 cash-for-scrap scheme was announced in the Budget.
Official figures from the Society of Motor Manufacturers and Traders (SMMT) showed that just 133,475 cars were sold in April. This is down 24 per cent or 42,193 on April 2008.
However, the £2000 scrappage incentive - which is set to start on 18 May - is not as generous as first thought with manufacturers and the Government each having to contribute £1000.
The cash-for-scrap scheme applies to any car over ten years old registered on or before 31 August 1999. Any owner of a car of this age can get a £2000 discount off a new car when they take their old car in to scrap - so long as thave have owned the car for more than 12 months.
Unlike the scheme in Germany - that is made up of £2300 all from the Government - the bonus in the UK is made up of £1000 from the Government and £1000 from manufacturers, this has caused some manufacturers to think carefullly before confirming that they are taking part in the plans.
The scheme in Germany has seen new car sales continue to rise since its introduction. In March sales were up by 40 per cent and April saw new car sales rise by 19 per cent.
However, the cash-for-scrap plan may not produce the big savings buyers first thought. As well as recent manufacturers price rise in April, the £2000 banger bonus fails to make little difference on cars priced over £20,000. Parker's has reported extensively on this in our SCRAPPAGE SPECIAL
With the scheme being a more attractive prospect for smaller cars some manufacturers are likely to add extra incentives on top of the Government proposal, with Alfa Romeo offering up to £3000 on top of the £2000 incentive on selected models.
-
The best selling cars in April
|
1
|
Ford Focus
|
8974
|
|
2
|
Ford Fiesta
|
8395
|
|
3
|
Vauxhall Corsa
|
7808
|
|
4
|
Volkswagen Golf
|
4814
|
|
5
|
Vauxhall Astra
|
4549
|
|
-
The worst performing manufacturers in April
|
|
1
|
Chrysler
|
-68.63%
|
|
2
|
Renault
|
-63.24%
|
|
3
|
Proton
|
-62.94%
|
|
4
|
Saab
|
-55.51%
|
|
5
|
Subaru
|
-50.86%
|
|
