UK Scrappage Scheme Working Well

The UK scrappage scheme is really useful for local automakers and for the automotive sector in the country as it represented no less than 9.7 percent of June's UK new car registrations. In particular, scrappage scheme sales totaled 17,014 units in June, raising the overall figures to 29,796 vehicles according to data provided by the Society of Motor Manufacturers and Traders (SMMT).

As for the commercial vehicle sector, the bonus incentives attracted 323 van buyers, representing 1.9 percent of the total scrappage registrations and 1.9 percent of overall van registrations in June, just-auto.com wrote.

"The scrappage incentive scheme is working well and has encouraged a lot more people back into showrooms," said SMMT chief executive Paul Everitt. "In the coming months, we will see an increase in the rate of deliveries and this will confirm further progress on the industry's long road to recovery."

"The true impact of the vehicle scrappage scheme will be felt over the next few months, as the volume of orders made via the scheme are processed and consumers receive their cars," said Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), representing the UK's car dealers.

And the United Kingdom is expecting even higher sales in the upcoming months as the delivery process takes up to two months to complete, partially because of the increasing car demand in the country.

"It can take up to two months for a new car purchase to go from the initial order to the delivery to the customer, so most of the purchases made under the scrappage scheme have yet to translate into sales," Robinson explained. "We expect the full impact of the scheme to make itself felt from next month onwards."