Comments on: China’s car sales up 24% in February

By: omgwot

omgwot — Wed, 11 Mar 2009 03:48:38 +0000

I would like to see a GST rebate from the government on Aussie made cars, that coupled with fleet discounts to all buyers and the LPG rebate I’m sure that would stimulate sales & keeps jobs.

By: Aleks

Aleks — Wed, 11 Mar 2009 03:08:41 +0000

Nothing, I refuse to buy new cars its such a waste of money. I always wait till they have about 20K on the clock. Its just as new usually and has lost that huge loss you get in the first year of a new car purchase. I don’t know why people buy new cars, but its good for me because there are always plenty of used cars for me to choose from.

By: Phil

Phil — Wed, 11 Mar 2009 03:03:51 +0000

If understand it correctly, the point of scrapping would be to take the car off the road (for emmissions and safety reasons). So I would assume that it would be illegal to register the car after that, like a non-repairable write off.

By: Dan

Dan — Wed, 11 Mar 2009 02:19:22 +0000

The scrappage incentive would only apply to cars over 10 or 15 years old salesman. That woudln’t have any impact on 2 year old falcon resales. It’s low enough already as it is anyway. And I doubt anyone would put an LPG system into their 15 year old car either.

By: The Salesman

The Salesman — Wed, 11 Mar 2009 01:41:20 +0000

Phil,
Imagine if the trade has just had LPG fitted (because of the recent rebate incentive) would the government crush a car they just paid $5K for that recently had a $2K LPG system fitted?. Or would it end up in a used car yard, somewhere the government can reduce the cost of the scrappage incentive?
Government fleet cars are also causing a similar problem. You can go to any auction house and find thousands of ex government Commodores, Falcons and Camrys (Aurions) for sale. If the government dropped these cars at no reserve it would destroy private trade in values and independent used car dealers.

By: Phil

Phil — Wed, 11 Mar 2009 01:27:53 +0000

@ Salesman: why would the market flood with trades? Scrappage means a trip to the crusher. I understand some people would go for a 15k new car instead of a 10k second hand car.. but it’s more of an incentive to get people who were not thinking about changing cars at all out of their dungers

By: Dan

Dan — Wed, 11 Mar 2009 01:26:59 +0000

“Would the ends justify the means?”

Godo point. Although you;d have to weigh up costs and benefits. How many jobs will you save with new cars versus how many with second hand cars. You;d find there would be more jobs relating to new cars, especially if they are locally built.

“oh,and by the way,does ANYBODY know about the rudd govt’s 30% tax write off for capital expenditure that expires june 30th??????”

You’re referring to the Investment Allowance that was announced by Wayne Swan on 12 December 08. Yes. Detailed info on the ATO website. Essentially additional deduction on depreciable assets (incl cars) acquired before certain dates. Meant to encourage business to spend money.

By: The Salesman

The Salesman — Tue, 10 Mar 2009 23:29:50 +0000

Scrappage would definitely increase new car sales. And driving a car would become safer for so many, not to mention the environmental benefits with emissions etc. But what about the independent used cars dealers? Their stock would become worthless as the market floods with trades we can not find homes for. Would the ends justify the means?

By: JEKYL & HYDE

JEKYL & HYDE — Tue, 10 Mar 2009 23:14:33 +0000

oh,and by the way,does ANYBODY know about the rudd govt’s 30% tax write off for capital expenditure that expires june 30th??????

By: JEKYL & HYDE

JEKYL & HYDE — Tue, 10 Mar 2009 23:10:06 +0000

i’d say that a scrappage plan would work.however it would leave all the backpackers nothing to drive.the sources say that as new car sales are drying up,that the value of good used cars are now increasing…