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New car sales in UK rose in 2010 despite end of government scrappage scheme

  Tuesday, 18 January 2011

Sales of UK cars rose 1.8% despite the Government ending the scrappage scheme in March 2010. The 2010 market rose by 35,847 units to 2,030,846 units, ending 1.8% up on 2009 figures.

The Government Scrappage Scheme was set up in early 2009 and was designed to boost sales in the recession, providing motorists with a £2,000 discount on new vehicles bought when they trade in cars that are over 10 years old. In 2010 alone, over 100 000 cars were registered through the scheme representing around 5% of the total market.

Volume of sales in the first half of 2010 rose by 19.9%, however fell in the second half by 13.8%. This large change reflects upon the removal of the car scrappage scheme in March, with the worst hit month being October when new car sales saw its biggest fall in 17 months down 22%. In tough economic conditions, Paul Everitt, The Chief Executive of The Society of Motor Manufacturers and Traders (SMMT) stated that “2010 was a year of recovery for the motor industry”.

The early growth helped to overcome the slowdown in the second half of the year, while the forecast for the early part of 2011 is not encouraging as the market is set to fall by 5% as difficult market conditions continue. However Everitt is positive that sales will rise in 2011, “UK motor manufacturing recovered particularly well in 2010 and the outlook is for further steady growth this year.”

ASM Auto Recycling is contracted by the UK’s leading insurers and vehicle manufacturers to provide a first class vehicle and salvage recovery collection service, in association with its car salvage auction service. ASM offers a full collection and salvage service for traded in vehicles throughout the Oxfordshire, Buckinghamshire, Bedfordshire and Hertfordshire areas.

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