by business editor Trevor Sturgess

The Government has been urged to extend the car scrappage scheme.

Paul Barrett, managing director of Barretts, the family-owned dealership with outlets in Canterbury and Ashford, said it had made a big difference to sales.
He estimated the scheme had helped his business sell an extra 300 cars over the past few weeks, between 10 and 15 per cent of total car sales.

He said the scheme had stimulated the sales of energy-efficient cars in particular. Barretts dealerships include Jaguar, Land Rover, Honda, Citroen and Seat.

This week, the Society of Motor Manufacturers and Traders reported that new car registrations rose 2.4 per cent in July to 157,149 units, the first growth since April 2008.

It said this uplift reflected the positive impace of the scrappage scheme, although it cautioned that the market was still down almost 550,000 units over the past 12 months.

Under the so-called bangers for cash scheme, sellers of cars over 10 years old are entitles to a minimum £2,000 discount on the price of a new car.

The Government contributes £1,000, with the manufacturer/dealing chipping in a further £1,000. There has been speculation that the success of the scheme could lead to it ending earlier than expected for financial reasons.

Mr Barrettt said the scheme had been virtually cost-neutral to the Government. "If they were to extend the scheme for another six to 12 months, we would be delighted," he said.

"We always understood that this scheme was a kick-start to the trade and it seems to have done that. We hope it will continue."

He added that now was a good time to buy a car. "Cars today are probably cheaper than there are ever going to be in the future. If you have the money, why not go out and do it?"