Australian motorists could be offered money to scrap their older cars under a plan being mooted by some makers.


An incentive scheme could get old bangers off the road.
The scheme, which offers cash incentives to people who trade in cars older than a certain age, has been widely adopted in Europe and some local makers, including market leader Toyota, believe the scheme has merit.

Supporters say the scheme would deliver a three-fold benefit. It would provide a desperately needed stimulus to the struggling car industry, reduce the carbon footprint of Australia's carpark and improve road safety.

A "scrappage" scheme in Germany has had spectacular results for the car industry, with new-car sales bucking the global slump to increase by more than 20per cent in February.

The German Government scheme offers 2500 (almost $5000) to anyone who trades in a car more than nine years old for one less than 12 months old. The car must also comply with the European Union's latest Euro IV emission regulations.

In some cases, manufacturers have matched the offer as added incentive to trade in.
It is predicted the move will lead to an extra 600,000 new-car sales this year.

Similar schemes operate in a number of European countries including Italy, Spain and France.

A Toyota spokesman says a scrappage scheme was one of a range of ideas being looked at to stimulate the market.

"The automotive industry is now putting together a range of ideas that we can put to government to stimulate the market," he says.

"Toyota supports the investigation of a scrappage scheme for the domestic market. A scheme that provides an incentive for consumers to take old cars off the road and buy a new car with better environmental efficiencies is not only good for the economy and for the environment, it will also increase the number of vehicles on our roads with better safety features.".

The chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, says the industry is examining the pros and cons of a scrappage system locally.

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I saw this on the news last night, they thinking of offering only 3000$ for cars 10 yrs or older. its just the same as what some dealers already offer 3000 min trade in.
this wont do anything because,
most cars 10-15 yrs old are worth at ;least 3000 anyway.
people driving older cars are doing it because they cant afford or dont want to pay off a car loan of around 100$/week or more.

Not to mention the fact that the spare parts industry and mechanical workshops who employ thousands upon thousands of people in Australia would be decimated.
Further the state governments would love it as they would cop a huge injection of stamp duty revenue from the new sales.

I could go on,but won't.This is just another clever underhanded way of increasing the profits of the big car companys.
My solution for them;make a better product and reduce the cost by about a third by getting rid of the private jets and overpayed bone heads at the top of these companies.
This subject is very important to us all and should be watched carefully.

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Hear, Hear!!!

goverment......there a joke
as if i part with mine

the one thing that i heard was that its not going to be cash, if it ever happens but will be a voucher that you can only spend a new car....

I might part with my 1200 for $5000 but only to another 1200 enthusiast. I dont know how much iy would cost to get me to put it up for scrap!?

unlikely to happen here.... in europe they do a lot more than us than that

we would see increased rego for larger cars and things like that introduced before this sort of thing (but we wont see that hear cause that would be the kiss of death for bommodores and falcoons and hence automotive indusry aus)

So under this proposed System, and old Sunny with a 5-speed would be worth a minimum of $3000?

But as previously stated,not $3000.00 cash but a voucher for 3 grand on the purchase of a new car.......and another loan and more debt,just what we need at the moment!
I,m sure some of these boffins have had part or all of thier grey matter surgically removed.