Last month new car registrations increased by over 57% as buyers took advantage of the cash for bangers scheme and the now lowered VAT rate.
The scrappage scheme will end when funding runs out of at the close of February. So far it has been used on 21.6% of about 160,000 vehicles that were registered in November. This is over 50% more than in November of 2008.
Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt stated that the car registration increase shows that the incentive scheme has been successful with customers.
The terms of the scheme allow buyers to receive a £2000 discount if they also trade in a vehicle that is ten or more years old.
Everritt estimated that the scheme has about £125m of funding left. On Wednesday, he asked the Government to think about extending the deadline for the scheme.
However, the Business Secretary Lord Mandelson said that the industry will have to deal with normal market conditions once again, which quashed hopes among many that the scheme would be extended.
The 57% increase was a large jump over previous months such as September which had an 11% increase and August which saw only a 6% increase.
For the most part, the large increase was a result of private buyers taking advantage of the scheme.
Yet, even with the huge increase the total sales figures for November are still down by about nine percent when compared to the total sales of last year.
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