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It would appear that the extension to the scrappage scheme has been welcomed with open arms by car dealers and buyers in Scotland. In September, new car sales in Scotland rose by more than 27% compared to the same period last year, and more than double the overall UK increase of 11.4%. Figures released state that 37,000 vehicles were sold in Scotland in September 2009, compared to 29,000 in the same month in 2008.
September is an extremely important month for the car industry, with the release of new registration plates providing a massive boost to sales. It is positive news that sales have increased as much as they have, and it give car dealers. This is the third consecutive monthly increase after a rise of 2.4% in July and 6% in August.
The scrappage scheme has been hailed as the saviour of the ailing UK car industry which has been hit by the global recession. However, overall sales are still down around 15.5% to date on last year, so the industry is not out of the woods yet as market conditions continue to be challenging. The scheme works on the idea that motorists trade in a car that is 10 year old or older in exchange for 2000 pounds off the price of a new car. One thousand pounds is donated by the Government, and the remaining one thousand is contributed by the car manufacturer.
The scheme has boosted sales of new cars whilst also removing more carbon emitting 'old bangers' from the roads. The scheme was originally going to cover the cost of 300,000 cars, but in September, after calls for an extension from the industry, the Government announced that an extra 100,000 vehicles would be added to the scheme, bringing the total allocation to 400 million pounds.
There is no doubt that car dealers in Scotland are in a better place than they were last year. Dealers throughout the north and north-east of the country, in particular, have seen considerable sales increases. Sales of new cars in Tayside were up almost 34% to 2,499, Highland sales were up nearly 19% to 1,797, whilst Grampian sales rose 11.6% to 3,358. Whilst sales figures have not reached the peaks of a few years ago, there is no doubt that without the scrappage scheme, sales would be much lower, and the state of the UK car industry would be much worse. Only time will tell how the industry will cope once the scheme has ended.
Lucy Hamshare is an online marketer who is currently researching New Cars in Scotland
Article Source: https://EzineArticles.com/expert/Lucy_Hamshare/432349
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