NEW car sales soared last month as buyers continued to take advantage of the Government's cash for bangers car scrappage scheme.

New registrations in October rose 31.6 per cent compared with October 2008, with a total of 168,942 new cars being sold last month, the Society of Motor Manufacturers and Traders (SMMT) said.

SMMT chief executive Paul Everitt said: "October has seen this year's biggest monthly increase in registrations, with the successful scrappage scheme accounting for over 20 per cent of them.

"We have seen additional demand created by the extension of the scheme and customers wanting to avoid the VAT increase planned for January.

"Encouragingly, there has also been an increase in demand in the fleet and business sectors, which will be critical in sustaining recovery next year."