January car sales up 30% on 2009

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Nearly a third more people treated themselves to a new car in January 2010 than in the same month last year, figures have shown.

A total of 145,500 motors were sold last month, which is a 30% increase on 2009 and better than industry experts had predicted, said the Society of Motor Manufacturers and Traders (SMMT).

The Government's "cash for bangers" scheme persuaded 20% of people to trade in their motor, which helped push the number of new car sales up for the seventh consecutive month.

January's disruptive icy weather and return to 17.5% VAT were expected to lower sales, but the SMMT warned of a "constrained" outlook and predicted new car demand would drop 9% to 1.82 million units by the end of 2010.

SMMT chief executive Paul Everitt said: "The industry expects another difficult year with the availability of finance, consumer confidence and sustaining demand post-scrappage key."

The most popular car last month was the Ford Fiesta - also the favourite in 2009 - which sold 8,861 models, followed by the Ford Focus at 6,942.

In third place was the Vauxhall Corsa, with 5,786 sales, and the top five best-seller list was completed by the VW Polo (5,786) and Vauxhall Astra (5,072).

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