New car registrations have dropped for the first time in a year

New car sales have dropped for the first time in a year, according to the Society of Motor Manufactures and Traders.

The drop in sales this July, by 13.2%, has been blamed on the end of the scrappage scheme and the country’s current economic problems.

Although July’s figures of 136,446 in new car registrations are down, sales figures are still up by 15 per cent against last year.

Paul Everitt, SMMT’s chief executive, said July’s losses were expected, but he remained confident that predicted sales volumes are still forecast to exceed 2009.

However, the SMMT added that the outlook for 2010 remains “difficult to predict”.

Everitt said that the planned rise in VAT from January 2011 would help 2010 figures, and should see customers bring their purchases forward to beat the VAT rise.

Approximately two million newly registered cars were sold last year, partly thanks to the scrappage scheme boosting sales by at least 330,000. The incentive ceased in March this year.

The three best-selling models in July this year were the Ford Fiesta, Vauxhall Astra and Vauxhall Corsa.See all the latest reviews, news and video

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