Car sales boosted by December increase

Car sales at the end of 2009 were only 6.4 per cent lower than in the preceding year thanks to a large increase in the number of cars sold during December.

Figures from the Society of Motor Manufacturers and Traders SMMT showed that car sales in December 2009 were 38.9 per cent higher than they were 12 months earlier.

Almost two million new car registrations were made last year and while this is the lowest figure since 1995 it is far higher than industry analysts predicted.

Paul Everitt, SMMT's chief executive, said: "The December new car market was boosted by the scrappage scheme and consumers looking to avoid January's VAT increase."

"The 2009 market of 1,994,999 new car registrations was significantly above early expectations and reflects the positive impact of the scheme, due to end in February," he added.

However, Mr Everitt claimed the industry could be bracing itself for further declines in 2010, news which may be of interest to van and car insurance customers.

This week, specialist insurer Staveley Head said now was a good time to increase the size of the vehicle fleets.

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2010-01-08 14:12:33 © Moneyextra.com