Eco car insurance policyholders may be going green in their droves as figures have shown the scrappage scheme to have pushed up new car sales last month.
The most recent statistics have shown that sales rose to 67,006 in August, marking an increase of six per cent on August 2008.
It was the second consecutive month of growth, building on the rise of 2.4 per cent recorded in July.
The positive figures have prompted calls from the motoring industry for the government to extend the scheme, which is due to expire next February.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), commented that the results are welcome, but added it is "essential" that the early signs of recovery are sustained.
"The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead," he stated.
Meanwhile, director of the Retail Motor Industry Federation Sue Robinson commented that the cash for clangers initiative has had a positive impact on the whole motoring industry, increasing footfall in dealerships as well as sales.
"With car sales continuing to grow as a result of the vehicle scrappage scheme, [the] government must consider an extension to enable consumers and businesses to gain full benefit from the initiative," she suggested.
In July, vehicle maker Ford announced that through its scrappage scheme, it had taken around 300 orders for vehicles a day and saved 8,730 tonnes of CO2.
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