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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