Sales of new cars across Scotland have plummeted as drivers postpone spending, according to motoring industry chiefs.

Sales levels plunged by almost 20 per cent last month, the third successive drop in three months – which is partly due to the ending of the car scrappage scheme in May.

A sector recovery is not looking likely until the middle of next year. Car buyers are also postponing their next new car purchase because of the impending public spending cuts, officials said. Instead, increasing numbers of people are turning to used cars in a bid to cut costs.

Scottish Motor Trade Association chief executive Douglas Robertson said, “This is not an unexpected decrease for we are now comparing figures with last year when the scrappage scheme was in full swing.

“We would anticipate this trend will continue for the remainder of the year. Consumers are now hearing of the effect the government cutbacks will have and, unsurprisingly, are being more cautious. We believe it will be well into 2011 before we see any real signs of an improvement in the retail market,” he added.

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