Scrappage Update

Figures released in August demonstrate that the motor industry received a much-needed boost when new car sales rose for the first time since April 2008. We look closely at the Government’s much publicised Scrappage scheme and see whether it has been an overall success.

The Scrappage incentive scheme has boosted vehicle registrations for the third successive month in August. According to recent figures released by the Society of Motor Manufacturers and Traders (SMMT), a total of 16,848 new cars were registered in August which account for 25.1% of all new car registrations for that month. In addition to this, as of August a total of 195,009 new car orders have been taken since the scheme began, indicating that consumers are taking advantage of the scheme and are continuing to buy despite the current economic climate.

The Scrappage scheme has boosted sales of smaller cars, such as the mini segment and supermini, which showed surging growth, up 252.8% and 16.9% respectively in August. Sports and dual purpose segments also recorded strong growth, up 25.8% and 10.1% respectively, in the month.
Top 10 Best Sellers Year to date
1 Fiesta  69,948
2 Focus  60,241
3 Corsa  51,576
4 Astra  36,052
5 Golf  31,824
6 207  27,461
7 Insignia 23,998
8 3 Series 21,981
9 MINI  21,156
10 A3  21,146
SMMT August 09

Original timescales for the Scrappage incentive was due to be available to the first 300,000 eligible buyers or until the 31st of March - whichever was sooner. With the August figures showing that we are over two thirds into the way through, it’s looking increasingly likely that this will run out way before the March deadline.

However, despite growth, the 2009 August market was still over 10,500 units below the 2007 outturn and 15.0% off the 78,800 market averaged between 1999 and 2008.

As well as our Scrappage hub on autotrader.co.uk, there are considerable advertising opportunities in the magazine where manufacturers can display bespoke advertorials around the double page spreads that are included in each issue detailing the new offering.

To find out more about how your clients can benefit from advertising through the Scrappage pages, contact your rep today.