UK new car sales have increased for the first time since April last year.
Sales of cars rose by 2.4% in July, compared with July in 2008.
Figures from the Society of Motor Manufacturers and Traders (SMMT) revealed that 157,149 new cars were sold in July.
SMMT figures also revealed that 33,026 cars were purchased through the scrappage scheme in July, which is around a fifth of all new vehicles bought.
The Government scrappage scheme has predominantly increased purchases of superminis, with sales in the segment three times what they were in the same month last year.
The SMMT's chief executive, Paul Everitt, said: 'The impact of the scrappage scheme is clear and we are encouraged by the impact it has had, increasing new car registrations for the first time since April 2008.'
Sales are still down 22.8% for the year so far, compared with the same period last year.
Top 10 best sellers in July
Ford Fiesta - 8976
Ford Focus - 7934
Vauxhall Corsa - 5920
Vauxhall Astra - 5705
Volkswagen Golf - 4101
Peugeot 207 - 3957
Vauxhall Insignia - 3340
BMW 3 Series - 3292
Hyundai i10 - 3084
Renault Clio - 2837