Car scrappage schemes keeping prices high, warns EU

CAR scrappage schemes, like that introduced last year, may be boosting sales, but they are keeping prices high too, according to the EU.

The price of cars dropped in 2009 and sales have increased dramatically in the first six months of this year according to the latest figures.

CSO statistics show that car sales at 8,304 in June jumped by almost 60% compared to the same month in 2009. The first six months saw a 70% increase in the sale of new cars, but this was little more than half what was sold in the same period in 2008 before the economic crisis fully hit.