The UK's largest car dealer group, Pendragon, this morning reported trading ahead of plan for the four months to October 31.

It said the outcome was boosted by the scrappage scheme, good cost control and a better used car performance.

"We are confident that this year's results will be in line with our current expectations and ahead of our original plan for the year," the dealer group said in a statement to the London Stock Exchange.

New car sales at its Evans Halshaw volume marque division were 3% ahead of the same period last year as the scrappage incentive scheme gave a stimulus to sales at the lower priced end of the market.

At its Stratstone premium brand division, new car sales were 5.2% ahead.

Pendragon said used car sales for the period increased 2.9%, with margins showing significant improvement.