New Car Sales Continue To Grow

Sales of new cars increased by 26.4% last month compared with February 2009, it has been revealed.

And with figures showing that 68,686 cars were sold, it may be a busy time for insurers with many people seeking a new, competitive insurance deal.

While the number of sales continues to pick up, the figure was still 1.3% down on February 2008, and 12.2% below the average February figures between 1999 and 2009.

The Society of Motor Manufacturers and Traders (SMMT), which announced the latest findings, said that 19.6% of the sales in the new car market were due to the Government's car scrappage scheme.

It also said the motor industry was suffering a downturn in demand and production a year ago which led to weak comparatives with the new figures.

It was the introduction of the scrappage scheme - which offers up to £2,000 for those trading in a 10-year-old car - which eventually reversed a trend which had seen year-on-year sales fall for 15 successive months.

SMMT chief executive Paul Everitt said: "Scrappage has generated eight consecutive months of growth in the new car market and we expect its benefits to stretch beyond the scheme's closure later this month."

The top-selling models last month were the Ford Fiesta, Ford Focus, and the Volkswagen Golf.