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    Car Scrappage Scheme has Boosted Car Sales

    Car Scrapping SchemeAccording to The Times Online new car registrations have finally been boosted by the Government's Car Scrappage Scheme. The registration of new cars slowed to an annual fall of 15.7% in June as the Government scheme boosted the demand for vehicles. In May the output fell by 43% and in April the output fell by 55%. So, we can see that the scheme is now working as the industry is picking up.

    The Society of Motor Manufacturers and Traders (SMMT) said, 'We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations.' It was clear that there would be a time lag in order for the motoring industry to see how much of an impact the scrappage scheme would have on the industry. The Chief Executive Paul Everitt said 'SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery'.

    It has also been noted that consumers are tending towards buying smaller, less expensive cars, with the Ford Fiesta being the best selling model for the fifth time this year. In fact, the mini part of the market soared by 145.4% in the month of June. As we've explained before, the Government Scrappage Scheme offers consumers the chance to trade in their cars that are ten years or older in exchange for a£2,000 plus discount on a new car. The discount is joint funded, half by the Government and half by the industry. The idea is for consumers to scrap their vehicles and get a brand new, more fuel efficient and environmentally friendly car. Some say the scheme is not generous enough as other countries in Europe, such as Germany offer an entirely state funded scheme of‚ 2,500 (£2,100) and can scrap cars that are nine years old. A 14.2% deficit was turned into 21.5% growth in sales.

    I used the scrappage scheme to get my new car and I had no problems getting my £2,000 discount. In fact, I got more money off as I bought early totalling to £3,500 discount. My new car is much more efficient and I am saving a lot more money than if I had kept my old car, with only £35 road tax now (£175 before) and one tank of petrol lasting me two weeks (about £40 to fill now, where as my old one was £50 a week!). If you're thinking of doing the same then don't hold back as this is a one off scheme that will end in February next year.Have you used the scrappage scheme? What were your experiences? Do you think it is a good incentive for you to trade in your old car or do you feel that you need more in order to be convinced, such as, better finance options on the brand new car? As I said in the last blog about the scrappage scheme not working due to high interest rates. Let us know your thoughts.

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