BANGERS FOR CASH SALES HIKE; New motors up 85%.

Byline: Graeme Hiscott

THE banger bonus scheme helped almost double car sales last month.

Nearly 170,000 new vehicles took to the road - up almost a third on last October and the biggest jump this year.

Car registration soared 85 per cent but van sales remained in the doldrums.

More than one in five new vehicles were ordered through the Government's scrappage scheme, which pays owners pounds 2000 when they trade in a clapped-out motor.

The Society of Motor Manufacturers and Traders say buyers are also getting in before the planned rise in VAT back to 17.5 per cent on January 1.

The figures cap a good couple of days for Britain's beleaguered motor trade.

Unions believe the U-turn by US car giants GM over their European arm will save a mass cull of workers at Vauxhall plants in Britain.

And Parliament yesterday approved a pounds 100million extension to the scrappage scheme. But Adrian Tink, of the RAC, warned: "The acid test will be how sales react when VAT goes back up and the scrappage scheme ends.

"The real worry is that car sales will dip once again once the crutch of financial incentives are removed."

Engines

The SMMT figures show taxpayers' money is mostly benefiting foreign car plants.

Eight of the 10 best-selling cars last month were made abroad, with only the Vauxhall Astra and Mini produced here along with engines for Ford's Fiesta and Focus.

The Hyundai i10 was the most popular car ordered in the scrappage scheme.

CAPTION(S):

SCRAPPED: Old cars