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Car Sales Slump in May Despite New Car Scrappage Scheme
Posted by Tweeting RevolutionThe Government’s new £300m car scrappage scheme is yet to have any affect on the market after new car sales figures have been released that showed a 24% drop in new car sales.
The Government’s car scrappage scheme is a system that provides consumers with £2000 if they scrap a car that’s over 10 years old for a new model. The scheme was released in May 2009 and it struggled from day 1 because there were arguements over costs, this lead to Ford holding off on their involvement.
This decrease in car sales means that the UK has seen an overall decrease in car sales for the last 12 months, despite the introduction of the car scrappage scheme. This doesn’t reflect the overall idea that consumer confidence is recovering.
Details released from The Society of Motor Manufacturers and Traders revealed that 35,000 new cars had been ordered through the car scrappage scheme, however, they say that it will take time for this figure to change into new registrations. They also used the excuse, to give the scheme some extra time to prove itself, that a number of customers are weighing up offers to try and get the best deal before buying a new car.
The Ford Fiesta came out the most popular car last month out of a total 134,858 sales. Only 15,386 of the overall sales were from Vauxhall after they suffered a 40% drop in sales.
The number of corporate sales of new cars has also had an affect on the overall sales figures. Car leasing companies that offer a range of makes, such as Vauxhall leasing and BMW leasing, are reducing the amount of cars they are buying because they are also suffering from the economic crash.
Leasing companies are struggling because when many people consider getting a new car, they forget about leasing options which tend to be cheaper than buying a new car. Also, car leasing is being pushed aside by the new car scrappage scheme which is encouraging consumers to buy a brand new car.



