This surge makes February the eight consecutive month in which Britain’s car market expanded. The rising trend has been driven by the government scrappage scheme: official figure show that the current scrappage program supported the sale of 367,506 vehicles - 19.6 percent of ones sold last month are credited to the incentive scheme.
The UK authorities announced the expansion of the scrappage scheme through March, a move that will provide further support to the country’s car market.
"The scrappage scheme has tempted private buyers back into the new and used car market. However, the business market is still fragile with many fleet and business operators delaying the replacement of vehicles, though the beginning of 2010 has seen some positive signs in this sector with the fleet market up 17 per cent.” said Sue Robinson, the Retail Motor Industry’s Director.
However, the overall forecasts for 2010 show reserved expectations, due to multiple disturbing factors, such as an upcoming probable tax increase and the end of the subsidies program.
"The continuing outlook for 2010 is set to be challenging with a level of uncertainty being caused by the imminent general election, it is likely that tax rises, public spending cuts and the end of the scrappage scheme in March will make consumers more cautious in their spending, certainly in the shorter term," Robinson added.
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