Scrappage scheme helps boost car sales
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Vehicle leasing organisations are showing more interest in adding to their fleets as the government's car scrappage scheme continues to revitalise the industry, it would seem.
According to the department of business, enterprise and regulatory reform, traders have received 60,000 orders for new cars since the scheme came into existence in April.
The incentive, which offers a £2,000 grant to consumers or businesses looking to replace cars of more than ten years old with new models, has helped generate renewed interest in the automotive market.
A spokesman for the Society of Motor Manufacturers and Traders (SMMT) said the scheme has had an "important" impact since it was introduced, leading to a rise in consumer confidence.
"It seems to be doing the job it was supposed to which is getting people back into showrooms and talking about buying a new vehicle again," she commented.
Despite the success of the scheme in helping to boost car sales, recent figures from the SMMT revealed that it has failed to have the same impact on activity in the commercial vehicle market.
The number of new truck registrations fell by 44 per cent during May, while van registrations plunged by over 50 per cent.
