Scrappage scheme ‘accounts for 20 per cent of car sales’

More than a fifth of all new vehicles sold since May 2009 have been purchased via the government scrappage scheme, according to new figures.

Statistics from the Society of Motor Manufacturers and Traders (SMMT) reveal that 311,159 vehicles have now been sold through the initiative since it commenced, which represents 20.4 per cent of the new car market.

Although January 2010’s scrappage contribution was the lowest to date, 17.8 per cent of all car sales in the month were completed using the scheme.

Paul Everitt, chief executive of the SMMT, hailed the ongoing contribution of scrappage, as well as welcoming the recently-announced one month extension of the scheme.

He added: “Scrappage continues to provide an important stimulus to the new car market, although the decreasing reliance on the scheme to deliver market growth is encouraging news for post-scrappage stability.”

Business secretary Lord Mandelson has also called on motorists to take advantage of the scrappage extension as soon as possible, as the funding for the scheme is strictly limited.

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