CAR sales have risen for the fifth consecutive month, showing a healthy 57.6% increase during November compared with a year earlier.
Dealerships expressed their delight at the improvement in the market, but cautioned that a combination of factors could see sales slip back into the slow lane next year.
The latest figures, provided by the Society of Motor Manufacturers and Traders, confirmed that private sales as well as business and fleet transactions continued to grow.
Sue Robinson, director of new car dealers’ representative the Retail Motor Industry Federation, said the scrappage scheme had played a big part in the sales revival.
The latest Government figures show that 274,455 new vehicles have been ordered through the scrappage scheme, which offers cash incentives to scrap older models for more environmentally-friendly new vehicles, since it went live earlier this year.
With sales continuing to grow, the Government’s injection of a further £100m funding for the scheme was viewed as a positive move for the industry.
Ms Robinson said: “Car dealers and consumers alike have been benefiting from the improved market.
“However, we do have a slight concern that 2010 could be a more difficult year with the scrappage scheme ending, VAT rising and possible restrained public spending.”
Last month, Jaguar Land Rover, which employs about 2,000 staff at its Halewood plant in Knowsley, reported a second consecutive month of operating profits as sales of its two famous marques continued to improve.
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