60,000 benefit from scrappage scheme (UK)

Following the U.S scrappage scheme announcement, new Government figures have revealed that 60,000 UK car buyers have placed orders under the scrappage scheme.

The scheme offers new car buyers a £2,000 discount if they scrap a vehicle that is at least 10 years old. However, some manufacturers are offering extra incentives to boost sales. Nissan extending its £2,000 scrappage scheme to include eight-year-old Nissan models.

The scrappage scheme was announced at the end of April and the latest figures cover orders from then until 7th June. Although the signs are positive, figures from SMMT earlier this month showed sales of new cars are still down by a quarter compared to the same time last year.

In related news, the Government's scrappage incentive scheme looks set to shake up the UK sales charts when June's registration figures are released next month, according to leaks from inside the motor industry.

The SMMT won't issue the official figures until early July, but according to multiple well-placed sources, Hyundai is currently outselling Vauxhall on retail sales, those made to customers parting with their own money. If the Korean company can continue its strong performance to the end of the month it looks set to take the number two spot behind Ford.

Toyota, Suzuki and Kia are also doing extremely well on the unofficial mid-month figures, benefiting from strong demand for the cheaper cars in their ranges.

Hyundai's strong showing comes on the back of a stellar performance in May when the company's UK sales increased by 37% against an overall fall in the market of 25%, and the company says it's biggest problem now is getting enough stock to satisfy demand, with dealers quoting a two-month wait for the i10.

Vauxhall's substantial fleet business means that there's little chance it will end the month lagging behind Hyundai in overall sales numbers but the Korean company's increasing market share - which looks certain to put it into the UK's top 10 car manufacturers on overall annual sales - is certain to cause alarm among rival makers.