October high for UK car sales

The October news was good for the UK motor trde with new car sales up more than 30% from the same month last year.

The Society of Motor Manufacturers and Traders said the huge increase in sales was partly due to the car scrappage scheme introduced by the government. Buyers taking advantage of the stimulus receive a £2,000 reduction on a new car when they trade in a car more than ten years old. Other countries running a similar system include the US and France.

The top two selling models this year are Ford designs, no 1 being the Fiesta closely followed by the Focus. As well as the public purchasing power an increase has been witnessed from the business sector in ordering fleet vehicles. This is a great indicator of increased confidence in recovery of the economy.

One analyst said he felt the boost in sales was possibly a sign that UK families, currently enjoying low mortgage interest fees, were now in a position to increase discretionary spending.

November and December could also see good sales figures with consumers wanting to beat the VAT increase due in January.