New car sales continue to climb

New car sales in the UK enjoyed a second consecutive increase, up 6% during August, according to the latest Society of Motor Manufacturers and Traders (SMMT) figures.

New cars

The rise has again been attributed to the Government’s successful car scrappage scheme, with the SMMT reporting that 67,006 cars were sold during the month.

The upturn follows a 2.4% rise recorded in July – the first monthly increase since April last year.

But despite the good news, new car sales are still down over 20% for the first seven months of the year compared to the January to July 2008 period.

There is also concern from some observers that once the funding for the scrappage scheme runs out, the car industry will again be hit by a slump in sales.

In August, the Department of Business revealed that more than 154,000 cars had been bought through the scheme, with more than half the money set aside to fund the initiative already spent.

The scheme involves consumers receiving £2,000 when they scrap their old cars registered before 31 August 1999 to buy a new one.

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