Good Garage Scheme looks at how the Scrappage Incentive Scheme withdrawal has affected new car sales.

Research by the SMMT has revealed new car registrations have fallen by more than 20% in comparison with 2009 sales. This is deemed to be as a result of last year’s Scrappage Incentive Scheme having now been withdrawn.

Paul Everitt, SMMT’s chief executive said: The industry expects the coming months to be challenging with slow, but steady, economic growth feeding through to improved confidence and demand during 2011.”

With those figures excluded, the figures are comparable. However, the industry is still expected to show an increase in new car sales of around 1.5% by the end of the year.

While the recession is hitting consumers’ pockets hard, there is expected to be a boost in sales prior to the rise in VAT in January with customers aiming to benefit from the last months of sales prior to the 2.5% increase.