Scrappage sales at new high
28.09.2009 - Dominic Sacco
(22)
The scrappage scheme has seen its most successful week. 12,003 cars were bought by drivers under the government's popular 'cash for bangers' program in the third week of September.
This brings the total number of vehicles sold to 227,750. If the rate of sales continues, government funding for the scheme will dry up by the end of October
Various organisations have called for an extension of the scheme, including:
- Auto Trader
- The Society of Motor Manufacturers and Traders (SMMT)
- Engineering Employees' Foundation
- RMI National Franchised Dealers Association (NFDA)
- A number of car makers
The scrappage scheme offers buyers £2,000 towards the price of a new car in exchange for a vehicle over ten years old.
SMMT chief executive Paul Everitt said: "Consumer confidence is weak and recovery remains extremely fragile. A continuation of the scheme through to the original close date of 28 February 2010 would help sustain growth."
The government has rejected an extension of the scheme, according to the NFDA. Chairman of the NFDA Paul Williams said: "We are disappointed at Lord Mandelson's comments where he rejected the possibility of a meeting with the industry to discuss the issue. And continuation of the scheme should not cost the taxpayer anything, because the VAT earned on scrappage sales has made it a self-funded scheme."
Key members from the Retail Motor Industry Federation will encourage an extension at the 2009 Labour and Conservative party conferences over the coming weeks.
