Consumers turn off new car purchases
The number of new cars registered in March has fallen by a third, year-on-year.
Despite the arrival of the new 09 number plates - which normally creates a boost in buying - the number of registrations last month amounted to just 313,912, or a drop of 30.5 per cent, according to Society of Motor Manufacturers and Traders (SMMT) figures.
The drop in registrations during such a key period is another potential argument for the introduction of a scrappage scheme, which would boost demand for vehicles and support the ailing car industry.
Paul Everitt, chief executive of the SMMT, said: "A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand. The UK is the only major European market not to implement a scheme."
A scrappage scheme would offer cash to owners of older cars if they disposed of them. The cash would then be used to purchase a new car, benefitting the automotive industry and the environment alike.
With new cars being generally much more efficient than older models the scrappage schemes would also reduce the UK's total CO2 emissions, supporters of the scheme have claimed.
Germany saw sales jump by 40 per cent in March after it introduced a scrappage scheme in which owners of cars at least nine years old were offered €2,500 (£2,200) for their vehicles.
The scheme is thought to have attracted around 500,000 buyers.
