The 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 scrappage scheme provides the consumer with £2000 towards a new model car when they scrap their old car if it's older than 10 years old. The scheme started in May and had problems after some manufacturers, one being Ford, held off on their involvement after there were arguements over costs.
The UK car market has now suffered 12 months of sale losses, even with the new car scrappage scheme being introduced. This simply weakens the reports that consumer confidence is improving.
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 said that they believe a large number of buyers are weighing up their options before purchasing a new car.
134,858 were sold in the UK last month with the Ford Fiesta coming out on top with the most amount of sales. 15,386 of those sales are from Vauxhall who had a bad May sales where they suffered from a huge 40% drop in sales.
The overall number of corporate sales during May has had a huge effect on the overall number of new sales for May. 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.
Many leasing companies are cutting jobs because when many people consider getting a new car, they forget about the leasing options that are open to them. Plus, with the new scrappage scheme encouraging people to buy a car rather than consider the other options that are open to them.
