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Figures to show impact of scrappage

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Monthly car figures are expected to show the impact the Government's vehicle-scrappage scheme is having and whether there has been a rise in car insurance policies taken out for new cars bought under the initiative.

The data is still expected to show that new car sales in May were well below those for May 2008 because the "cash for bangers" scheme was only introduced more than half way through the month.

The Society of Motor Manufacturers and Traders, which will publish the May 2009 new registration figures, said it would take "a couple of months" before it can be seen whether the scheme has had a positive impact on beleaguered new car sales.

The scrappage scheme was announced in the Budget in April aimed at boosting car sales, which have fallen sharply since the credit crunch began.

The initiative offers drivers of cars and small vans a £2,000 cash incentive to swap their old vehicle, which is more than 10 years old, for a brand-new model.

The Government has pledged £300 million to the initiative and so far figures suggest 35,000 cars have already been ordered under the scheme.

© Press Association 2009