blog counter

Car scrapping scheme proposed for Australia

March 23, 2009 by George Skentzos  

Drivers could be offered up to $3000 to scrap their old cars if a proposal made by the Motor Traders Association of New South Wales  is accepted by the Federal Labor Government.

Government considering cash-for-cars scheme

The proposal is intended to remove polluting, unsafe cars from Australian roads, with similar initiatives already implemented in France, Germany and Brazil leading to an increase in new vehicle sales by as much as 10 per cent.

The MTA NSW proposal would see the Australian Government pay up to $3000 for vehicles more than 10 years old, with the cash incentive to be put toward a new car purchase to help stimulate the car industry.

These older cars would then be crushed, permanently removing them from Australian roads – with the Government reminded that the cost of this scheme would be largely recuperated through the inherent cost of GST associated with every new car purchase.

“We are not specifying buy Australian or anything else,” MTA NSW’s James McCall said. “We need to help the industry, including 103,000 small businesses that make a living from the car industry and 318,000 workers.”

The MTA estimates that of the 15 million vehicles in Australia, about half are more than 10 years old and a further two million of those worth less than $3000.

“The key is the grant has to be at least equal to what the owner would get if they traded it,” Mr McCall said. “Our submission asks the Government to set aside a maximum of $4.5 billion, spread over three years, which will be plenty to cover the cost.”

While the proposal has upset some used car dealers, the scheme would be more than welcome for the struggling Australian automotive industry, with new vehicle sales hitting a six-year low in February.

Source: News.com.au

No tags for this post.
Related Articles:
  • Government to erase demerit points scheme- Victorian drivers could soon be given the chance...
  • Skoda sells 4500 new cars through scrappage- Skoda in the UK has taken over 4,500...
  • UK introduces scrappage scheme- UK motorists are being offered £2,000 (AU$4,078) towards...
  • US ‘Cash for Clunkers’ scheme sees dubious results- According to a recent study conducted by Edmunds,...
  • Toyota most popular choice in US clunker scheme- The US National Highway Traffic Safety Administration has...
  • Comments

    87 Responses to “Car scrapping scheme proposed for Australia”
    1. -1 Vote -1 Vote +1iHope.
      says:

      Stupid.

    2. -1 Vote -1 Vote +1The Salesman
      says:

      What a fantastic idea, as long as the old cars are scrapped and not re birthed somewhere. Lots of benefits for safety, environment and jobs. Here’s hoping.

    3. -1 Vote -1 Vote +1Tim
      says:

      IHope, you are the one stupid.

      This is a brilliant idea which as mentiones, has worked wonders in France and Germany especially. I would definately replace my second car (10+ years old) with this offer…especially that I’m looking for a new car in August/September.

      Bring it on KRudd!

    4. -1 Vote -1 Vote +1Lee
      says:

      I think this is a great idea, but has any thought gone into the fact that people are driving older or unsafe cars because they cannot afford a new car or repairs to their old car…

    5. -1 Vote -1 Vote +1Bavarian Missile (.)(.)
      says:

      There goes most of the sales for the wreckers I would guess though ?????????

      Now they only need a cash for ex husbands ,I sent mine back and got nothing back ! ;)

    6. -1 Vote -1 Vote +1RoFlmaTiC
      says:

      This will improve the resales of those old cars dramatically.

      Buy 10 $500 cars now and sell them for $1500 or so if this legislation gets passed :D

    7. -1 Vote -1 Vote +1Name (required)
      says:

      bahahahaha i dont think the gov would go that far Bavarian Missile
      hmmmmm i dont realy think this is the answer tho 3k aint gonna change peoples minds into buyn a new car
      but if u did go buy some over 10yr old cars for 500 bucks u could make alot of money here hmmmmmm

    8. -1 Vote -1 Vote +1Andrew M
      says:

      The question lee raised about affordability is the very question i come up with every time this subject is touched on.

      how can someone who obviously either cant afford a new car or cant see the sense in buying a new car for the obvious waste of money that they are, suddenly be swayed in to trading their $1K bomb for a new one that will see them having to shell out another 18K AT LEAST to get a decent one

    9. -1 Vote -1 Vote +1Richo
      says:

      I feel sorry for people who’s old car might die on them, and they need a car fast, but can only afford say $2k, well bad luck you can’t get one because the minimum car price will become $3k… this has all the hallmarks of a poorly thought out plan, right up the labor party’s ally then!

    10. -1 Vote -1 Vote +1Andrew M
      says:

      The other thing which is always brought up in regards to this subject is that it will only bring tommorrows sales forward to today.

      Also say goodbye to used car dealers. noone ever thinks of that part of the industry. That side also has employees that have families too.

      sorry, but i can mainly see negatives with this sort of scheme

    11. -1 Vote -1 Vote +1Frontman
      says:

      I agree with the later comments, also throw in the supply demand part as well. The VN that was worth $500 to the wrecker is now worth nothing as no one will need it’s parts and everyone is getting out of them. THe $1000 Au or Wide body has just become $300 because no one wants them. Also they would be looking into finance, so when they lose their job is Govco going to continue paying their loans?

    12. -1 Vote -1 Vote +1G MAN
      says:

      i would take advantage of that for sure!!! i have been looking at buying a new car and have been for 3 years! my old uc torana is not worth a pinch of salt, but that would get me moving!!

    13. -1 Vote -1 Vote +1Elitist
      says:

      Rudd has no ideas…

      First free money for looser mums, then $950 for everyone to BUY Made in China Flat Screens. Doing great for our economy.

    14. -1 Vote -1 Vote +1realcars
      says:

      Elitist, neither has the conservative side of politics.

      Level playing field and the extinction of manufacturing in Australia is what both sides support.

      All our Captains of Industry know is how to go to China or India and set up there. These idiots should be outsourced to same to complete the picture.

    15. -1 Vote -1 Vote +1Tom
      says:

      This is such a stupid, short sighted plan. Everyone rabbits on about how sales in Germany are up 20%, in the first month, so we have no idea how well this plan will actually work longer term. Secondly, all those people who replace their car now using this scheme, they would have been people that bought a car in 2 – 3 years time. So in 2 – 3 years time, who is going to buy the new cars? Unless this scheme runs for the car life cycle (around 12-15 years in australia) at some point the increased sales now will come at the cost of future sales, so the car industry gets screwed, again. It also relies on the faulty logic that people who own $3k cars can afford to buy a new car. I’m sure some might, but not enough to really add a sustained increase in sales. Lastly its not ‘green’ at all, the energy required to produce a car will take huge amount of kilometres for a new car to pay itself off, compared to just keeping your old car. Even more lastly, it also means the lowest priced car will be around $3k, because there will be enough people who wanted to buy a new car anyway buying a bomb to get the $3k trade-in. So uni students and other financially impoverished people will find it harder to get their first car. Car prices are like a spring, fixed at one end by the value of scrap cars (ie nothing) but the other end (new car prices) isn’t fixed. So just like the first home buyers grant, if you lift the fixed end up by $3k, then all that actually happens is the non fixed end lifts up $3k. So no one wins, except the car manufacturers, and thats on the governments dime.

    16. -1 Vote -1 Vote +1zero
      says:

      “The MTA estimates that of the 15 million vehicles in Australia, about half are more than 10 years old and a further two million of those worth less than $3000.”

      omgosh..dint know half the aussie are driving old junks
      sounds like india/china/thailand
      i think even china has more new cars

    17. -1 Vote -1 Vote +1technofreak
      says:

      hmmm…interesting concept. I tend to agree with Tom. Maybe it should be an option if you want it…dunno? The 3K will probably be gobbled up as Tom explained.

    18. -1 Vote -1 Vote +1Italian Stallion
      says:

      It’s money for nothing. Imagine the last time you sat behind that piece of shit, mid-80’s datsun blowing blue-smoke and filling your lungs before you can shut off the outside air, then it dawdles, only one brake light works and the indicators come on sporadically – now imagine this person getting $3000 to get this bucket off the road! HOW CAN THAT BE BAD?
      Like everything, this scheme has pros and cons.
      In europe they do the buy-backs with many cars being recycled. Both the French and Germans reuse the plastics and metals in new cars. That’s gotta be better for the environment.

    19. -1 Vote -1 Vote +1Leafspring
      says:

      My sons both have 10+ year-old cars that I bought for them as their first vehicles. They’re paying me back, but on the condition that the cars are maintained and regularly serviced. Their cars are probably worth less than $8000 each in sales terms, but worth much more than that, to them. I also have a 10yo locally manufactured second vehicle. This is worth no more than $5000, but to me – it’s worth considerably more, as it is in excellent condition for the age and the mileage. The $3000 scheme isn’t sufficient enough to sway me or my sons to consider a ‘buy back’. Furthermore (and as has been previously mentioned), lower income families may not be able to afford monthly payments at all on a newer vehicle as the $3000 wouldn’t get you started very well. So, I’m not sure how successful this scheme would be. Boost it to $5000 – maybe….?

    20. -1 Vote -1 Vote +1dhairaz
      says:

      The idea maybe good to stimulate the economy you get $3000 and than pull out your money more than $3000. Think yourself.

    21. -1 Vote -1 Vote +1Andrew M
      says:

      Tom, i agree totaly, but dont agree that the manufacturers will win.
      there is still only so many sales to go around. if this grant comes in, what is does is compress the next 3 years worth of sales into one year.

      what are they gonna call on to save them in 3 years time when sales fall even lower???

      this is an extremely short sighted fix.

      Italian stallion,
      is someone driving around in a $500 datsun really the person that can afford getting into debt for 20K plus???

      I cant see 2K in prospective buyers pockets really counting for that much when you have to spend at least 25K to get a decent small car let alone if you require a family car which is more expensive

      G Man,
      sure you would take advantage of this offer, but as you said you were gonna buy a new car anyway.
      Giving the benefit to people like yourself who were going to buy new anyway doesnt really benefit the system.
      your sale was gonna be made with or without the grant.

      this is an idea to promote those who WERENT going to upgrade to suddenly do so.

      Why dont they simply raise the import tariffs to a level where our own economy gets preference over the asian/american or euro economy.

      the other countries sure as hell arent promoting our products over their own, so why should we promote theirs over ours.

      I dont know how many jobs need to be shipped off shores before the government wakes up to it.

      Knee jerking rudd is too busy trying to impress the world and fails to see our country is suffering while he is trying to make world leaders into mates

    22. -1 Vote -1 Vote +1Andrew M
      says:

      ^^^
      ha ha ha i contradicted myself in the first line.

      I should have said mostly agree not totally agree

    23. -1 Vote -1 Vote +1Bavarian Missile (.)(.)
      says:

      Sucks that those that didnt vote for the Milky Bar Kid have to cop his dealings………………

    24. -1 Vote -1 Vote +1Cupid Stunt
      says:

      Ha Ha there won’t be many car left in Victoria if it was compulsory!!

    25. -1 Vote -1 Vote +1Bavarian Missile (.)(.)
      says:

      Babe if you have been to Tassie most of their cars are under 10 years too…………..Morning —………………hows ya weekend ?

    26. -1 Vote -1 Vote +1Andy
      says:

      lol true Cupid. But in any case, isnt there a kernel of good policy in it? Cars 10yrs or older (Classics and enthusiast cars excepted) should be much more expensive to re-register as they generate such a heavy cost to society as a whole. banning it is a tad too harsh for a democracy.

    27. -1 Vote -1 Vote +1Shak
      says:

      it makes no sense because anyone driving a 10 year old can’t afford a new car and the 3000 is only going to make them buy another bomb that would negate the effect the scheme has. Altough some drivers have classics this only accounts for about 5% of cars registered. Although that 3000 could buy another plasma or parst for another car.

    28. -1 Vote -1 Vote +1realcars
      says:

      Yeah BM the problem is Labor can’t help but put us in debt and the Liberals can’t resist making the average Joe’s life a misery via master/slave industrial relations policy.

      Liberals openly antagonise the unions before they actually do anything which eventually proves to be their undoing.Bunch of idiots.

      We have had one hell of a boom now hang on for one hell of a bust.Greenspan and all the other “Accountants” got us in this mess as no one was actually at the wheel it would seem.

      I frankly would prefer that a few jobs were lost rather than the government throw good money after bad in an attempt to revive things. This stimulous isn’t sufficient in this situation to make much of a differnce anyway and at the end of the day the Government will have a large debt to boot.

      My advice to the newly unemployed, as we have a generous safety net in this country,is have a break until the recovery starts or when the rich want to start making money again and consumers start wanting again which is inevitable.

    29. -1 Vote -1 Vote +1realcars
      says:

      Did anybody ever succeed in picking themselves up by their own bootstraps?

    30. -1 Vote -1 Vote +1Frenchie
      says:

      I think its a good idea. If people can’t afford $3000 for a car then maybe they should not be driving. Catch a bus,train, or ride a bike!

      What I was told when I was a young lad by my father,”If you can’t afford to buy it you will not be able to afford to run it.”

    31. -1 Vote -1 Vote +1Cupid Stunt
      says:

      Thanks BM – Wall to wall sunshine here for two weeks and no rain. Yoohoo!

      Most cars here (UK) are going to crusher after 15yrs with few surviving beyond that. Our 10yr old Pug worth £400. Needs a service , cam-belt change, new tyre and a host of minor repairs. Whilst it still goes the repair cost are too high to make it worthy so off to the scapper it goes.

    32. -1 Vote -1 Vote +1Mark Greenburg
      says:

      ABOUT BLOODY TIME. Australia is the only 1st world country I know where 30 year old cars are still getting around on a daily basis. Australia is the only country whose airline fleet is NEWER than its vehicle fleet!! That’s right – the average age of a Qantas plane is less than the average age of a car, and yet planes last quite a bit longer than cars do. Unbelievable.

    33. -1 Vote -1 Vote +1Horse
      says:

      How many of you old car haters have any sort of basic mechanical skills?
      I loved my teen years hanging out in my parents garage with my mates, working on old cars all night.

      Go and buy your kids a safe car with abs, esp and the like. You may feel they are safe but will go through life needing to call the nrma to change a tire and never really learn to drive properly.

      Old cars are part of our culture.

    34. -1 Vote -1 Vote +1Mark Greenburg
      says:

      Times are changing. Holdens once made up 50% of cars sold in Australia. Imports used to be scare and expensive – now most cars are imports. Most cars sold used to be manuals – now automatics make up 80% of sales. Station wagons used to be popular – now only 3% of cars sales are wagons. Why hang on to the past?

    35. -1 Vote -1 Vote +1Frontman
      says:

      Andy Says:
      March 23rd, 2009 at 10:13 pm
      Except Andy what about the pensioners? My parents are on the pension, and have a car over 10y/o. It is a 98 Outback Limited that I gave them, it is over maintained as it is serviced every six months and only does around 11k a year. For them buying a new car, even with $3000 from Govco would put them into a lesser car without any real benefit to the enviroment. Seeing as seniors are making up a larger portion of older car owners these days, can you see the problems in both this system and the age based registration system?

    36. -1 Vote -1 Vote +1The Realist
      says:

      Smart idea, let’s give a low income earner $3K, but they now have to put themselves into more debt by getting a $15K loan to pay for their next new car.

      If those Labor muppets accept this it’s confirmation their intent is to run Oz into the ground – and many of you voted for them.

      At least I’m getting my $900 from Krudd. I’ll use it to detail my M5. ;-)

    37. -1 Vote -1 Vote +1Ivan
      says:

      I think it’s a good idea.

      Let’s say you have a car over 10yo. You want to buy another 2nd hand car but only have 2k budget. With those additional 3k, you get 5k. Therefore, the demand for those 4k-6k second hand cars will increase.

      It continues, people who are selling those 4k-6k are getting their money and now are buying better second hand cars probably worth around 10k. Therefore, demand for those 10k second hand cars will increase.

      See the pattern? It will continue all the way up to the new car market.

    38. -1 Vote -1 Vote +1Chit
      says:

      Realist your a twit! Not everyone who has a bomb of a car is a low income earner. Yeah we were better off with Liberals, yeah right. The whole global economy is in a spin and its not due to which political party is in.

    39. -1 Vote -1 Vote +1Mark Greenburg
      says:

      Chit writes “Not everyone who has a bomb of a car is a low income earner”. How many company CEOs do you see driving 20 year old VN Commodores?

    40. -1 Vote -1 Vote +1Chit
      says:

      Mark Greenburg, how do you know? Do you have a CEO detector? By the way there are other jobs that pay a good income, moron.

    41. -1 Vote -1 Vote +1Mark Greenburg
      says:

      Go to any office building and look at what car is parked in the space marked CEO or President or Director… I can guarantee you it won’t be an old bomb.

    42. -1 Vote -1 Vote +1Tom
      says:

      Ivan, you only get the $3k if you buy a new car, so it’ll have no effect on sales on second hand cars, it’ll probably reduce demand actually, worsening resales values whilst boosting the minimum value to $3k, hence compressing the second hand market car prices. And Frenchie, glad you could get a mint car when you first started driving, most people can’t, and rely on cars worth around that amount to get their first set of wheels. We don’t all live in the city and have access to buses and trains. My first car was a Telstar TX5 I got for $2500, and I needed it to get to work and school. Now that car will be worth at least $3k, and when you’re just starting out, $500 like two – three weeks pay. Many people had much cheaper cars as well, because our mummies and daddies didn’t buy our cars, we did.

    43. -1 Vote -1 Vote +1Zorro
      says:

      Rarely have I heard so much hysteria. Nobody, pensioners, teenagers or anybody else, will be forced to get out of their old cars.

      Talk this will only stimulate tomorrows buyers today, and therefore tomorrows sales will dry up is complete rubbish. If this were true, why does big business and industry (let’s face it the experts when it comes to retailing) continue on any given day to put on “sales” of every description, across every industry, car retailing included???

      Also the argument people who drive “old” cars cannot afford new cars is certainly true for some people, but not everyone. Many people who can afford a new vehicle simply choose to allow their cars to age as a driving new car is not a priority for them. There are plenty of people with money that don’t need to “keep up with the Joneses”. And how many times have you heard someone say about their car, “there’s nothing wrong with it, I won’t get anything for it, so i’ll keep it…” This proposal would bring these car owners to market.

      Someone else said the Used Car Industry would collapse. Really? At worst there would only be a minor price adjustment as all the rubbish is taken out of the market, otherwise business as usual as there will always be used car buyers.

      One argument put forward above was that you need to spend 25K to get a decent car these days , as if that should make any difference anyway, but there is plenty of safe economical new cars for under 20K. There’s never been more choice.

      Lastly some moron mentioned the money would only go on new plasma tv’s. This poster obviously failed reading comprehension at school, as the proposal in its current form provides cash to be put toward a new vehicle purchase.

      This proposal is to applauded. There is not a single reason why it wouldn’t work and shouldn’t be introduced. We all win with the removal of old dangerous polluting oil leaking wrecks from our roads.

    44. -1 Vote -1 Vote +1Ravith
      says:

      First making things clear:
      That 3000 is to be used to buying a new or <1 year old. So you can’t buy $3001 car getting rid of your 20 year old car.

      This idea is BRILLIANT idea. This scheme has worken in Europe – so why not in Oz? Surely those who have just bought a new car and don’t have old car <3000 worth would lament if this rule is brought.

      There may be some disadvantage to wreckers – but new job will be generated to recycle the old car’s part (=almost like wrecking???).
      Regarding those shrewd dealers who sell the old and rotten lemons to unsuspecting customers GOOD that they went out of business. Well, stay on dole until you find next job.
      This scheme – like any other, won’t benefit all of the people right now. But, considering this scheme will stay – it will help everyone in the long run.
      Even if only 25% people took the offer, 500000 new car will be sold!! So the car manufacturers and the agencies in line will have a super boost.

      Bring it soon!!
      (I have my Nissan Pintara on last legs…..!!!)

    45. -1 Vote -1 Vote +1The Original Stevo
      says:

      This would be great if it is used to buy a locally made car. What the govt should be doing is scrapping the GST on locally made cars – that would help the ailing car industry and save aussie jobs. I know a few holden workers who have this week off.

    46. -1 Vote -1 Vote +1Bret
      says:

      Ravith,
      I think you numbers are a bit optermistic. You’d be lucky if 2.5% took up the offer.

      I wonder if this is really a good idea: lets ecourage more borrowing, to but that new car, in the middle of a financial crisis caused by excessive borrowing??

    47. -1 Vote -1 Vote +1Frontman
      says:

      There are good points and bad points on this scheme. My feelings are simply that the pricing will follow the LPG scheme / Scam. We were selling retro fits for $2,800 > $3,500 for Falcons, then the LPG handout came along and those systems jumped to $4800 > $6200!! Strange hey?

      Again I cannot understand that if Govco are giving the money with the thought that they are going to get it back in Stamp Duty & GST, why don’t they just do the original thing that was supposed to happen when GST was introduced and get rid of Stamp Duty across the board? That would mean that the lower income earners would get a discount even if they could only afford $50/wk ($10,000 over 5 years at 10%).

    48. -1 Vote -1 Vote +1Bavarian Missile (.)(.)
      says:

      I can hear the farmers now ringing up that Gov dept “mate Ive got this rusty old Vermilion Fire Falcon lying around the back shed, can ya come pick it up?” there goes the chance of any of us getting a project car :(

    49. -1 Vote -1 Vote +1eh179driver
      says:

      This scheme was introduced in the USA about 3 years ago. It was called (in typical Seppo style) “Cash For Clunkers”. The amount given was about $3′000 per car over 10 years old (from memory).
      It did NOTHING for new car sales. Totaly and utterly NOTHING!
      So why are we even thinking about trying a failed plan here??????

    50. -1 Vote -1 Vote +1Zorro
      says:

      Bret

      Worldwide economies and business depend on and grow through sound borrowing practices. This crisis was caused not by these practises, but by unregulated and unscrupulous lenders providing loans to people who could not afford to repay them.

      This proposal has benefits for everyone who chooses to take advantage of it, all road users in general, and the wider community at large.

    51. -1 Vote -1 Vote +1Bret
      says:

      Zorro, thanks for telling us all what we ALL already knew!

      AND for confirming my earlier statement that giving loans to those who really can’t afford them, but “hey I wan’t to get the $3000 govt freebee to buy that new car I can’t afford” is not a good idea.

    52. -1 Vote -1 Vote +1Tom
      says:

      Zorro, stores have sales to move old stock, with the hope that sales on a few items will increase foot traffic and hence potentially increase sales on non-sale items. Where cars differ from general consumer goods is that they last much longer, are pretty much a necessity (every family has one) and they are worth a significant amount of peoples income. People who buy a new TV usually either put the old tv in a different room, so they can be an impulse buy, as the purchase of a new item doesn’t make the old one worthless, nor does it consume the majority of your yearly income. But with the high cost of keeping a car, that doesn’t apply. Someone who buys a car now, might want to buy again in 3 years time if there’s a sale, but only if he/she can sell the old one, because cars cost a lot to buy and keep. If no one buys second hand cars because there’s an incentive to buy new cars, then eventually people won’t buy new cars because they can’t sell their old one. That tanks second hand car values towards the $3k mark, making the cost of getting a new car *higher*. Thats why sales for consumer goods don’t usually impact future sales (in the long term) but this will with cars.

      Ravish, its a bit early to say its worked in Europe, its been going for just over 1 month now, and in that first month (which will be the most successful month) sales only went up 20.5%. Thats not a lot of data and not a big success to base a multi-billion dollar program on.

    53. -1 Vote -1 Vote +1Tom
      says:

      Sorry Zorro, no idea why I pinned that first paragraph to you, I meant Ravish.

    54. -1 Vote -1 Vote +1R8
      says:

      This is an excellent idea!

      There are so many old and unsafe cars out there. Some are spewing out dirty, toxic fumes. If you have ever driven behind such cars, you would know what I am talking about.

      Sure, not everyone who owns a $3K car can afford a new car. But there is a large percentage of people out there with old cars who would get a new car if there is extra cash incentives. This $3000 (or more) cash incentive would certainly give it a BIG push for people waiting to buy a new car.

      This scheme would be good for the economy, the environment and the car industry and jobs.

    55. -1 Vote -1 Vote +1Tom
      says:

      Actually, I take that back. That was aimed at you.

    56. -1 Vote -1 Vote +1Zorro
      says:

      Tom I figured it was aimed at me hehehe…

      At the moment you will notice many automotive manufacturers advertising ‘08 plate vehicles (old stock cars!) at substantial discounts. This “sale” happens every year around this time. At the end of financial year you will also find most, if not all the manufacturers having a “clearamce” or “sale” as well. All of this activity is aimed at getting tomorrow’s car buyers into showrooms today, and it works over the long term, hence every year we see the same “sales”.

      We probably need to see more detail to fully comprehend the impact on used car values, but as outlined this program applies to heaps of junk valued at 3K or less, which is a very small portion of the used car market and not everyone with a clunker will utilise this scheme.

      Brett – you are a donkey, every day car buyers in this country are declined finance because lenders deem they lack the capacity to repay or they have a poor credit history. You need to get off this site and get on with your finger painting.

    57. -1 Vote -1 Vote +1freddy
      says:

      I’ll ‘fess up. I drive a 10yo Subaru Outback. I intend buying a new car before 30 June. I earn well into 6 figures, so it is not as though I could’t have bought a new car any time over the last few years. So there are drivers like me out there who might be able to take advantage of this scheme. I’d held off buying due mainly to being a tight arse and also not wanting to add to my environmental footprint (I drive less than 15,000 km a year and building a new car far exceeds the environmental damage my Subie does each year). But in actual fact this Scheme will do nothing to make me buy a new car any sooner as a measly $3,000 is less than my current car is worth anyway.

    58. -1 Vote -1 Vote +1Bret
      says:

      Zorro, personal abuse to those who prove you wrong just shows your small mindedness. I’m sorry if you can’t handle the truth.

      Financial experts all over Australia are saying that these schemes, that encourage borrowing, are a silly idea and will have negative long term impacts on the economy and community.

    59. -1 Vote -1 Vote +1Glen
      says:

      I think it would be better to give them $3000 if they buy an economical new car (less than 7L/100km) with low CO2 emissions.

    60. -1 Vote -1 Vote +1BK
      says:

      They really need to get rid of all those clapped out commodores of the road. You stop by a commodore at a set of lights and all you hear is these clunkers clunking like theres a misfire on there noisy waterpumps. Shame to holden for inventing these things in the first place. I wouldnt give em 3 grand for these dunnydores maybe 300 bucks is wat they are really worth.

    61. -1 Vote -1 Vote +1Andrew M
      says:

      Zorro,
      so there is plenty of choice for cars under 20K is there????

      so are you saying we should all drive cars smaller than those that are classified as small????….the light class

      what if someone needs a family car??? head towards 40K for a commodore, falcon, accord, aurion sort of vehicle

      You do need to spend 25K to get a half decent small car.
      sure you will get into a hyjndai getz or barina for sub 20K, but what about those that hold regard for their safety and comfort.

      and the reason why what you have to spend to get a car makes a difference is that the more you have to spend, the less relevant $3000 becomes.
      also dont forget that you may already get 2-3K if you trade that 10yr old dunnger so at best you are only 1K better off

    62. -1 Vote -1 Vote +1Phill
      says:

      This idea is dumb,it would get more young people into debt,there plenty of good cars around under $3000,and theres plenty of people who need them.Hows the timing by the Goverment,talking about this the same week the Tara Nano is to be first sold,what are they trying make an future Nano market.

    63. -1 Vote -1 Vote +1Wheelnut
      says:

      I think that this is a stupid idea as it could end up being a bit like the Baby Bonus. Sure it sounds like a good idea at first
      However; like it or not; the only reason some people decided to have a baby was to get the money they don’t/didn’t really want or could afford to have a baby

      Not only that but studies have shown that what’s happening with the baby bonus is a number of parents in certain areas etc aren’t spending the money on the baby but on other things – mainly Drugs.. and the same thing could happen with the Cars for Cash plan.

      Instead the govt should make it a more of a reward for doing something and not as a reason for doing it. They don’t even have to publicise it the dealers could send the sales order forms into the government and you receive an unexpected cheque in the mail.

    64. -1 Vote -1 Vote +1Andrew M
      says:

      Wheelnut,
      this isnt the sort of thing that would allow you to buy drugs.

      you cant take the homeowner grant and go get off your tits with it.
      it would more than likely be absorbed into the economy by the finance company you are using or the dealer itself.

      if people need to get drug money by borrowing for a car, they may as well draw it on the credit card directly

    65. -1 Vote -1 Vote +1Zorro
      says:

      Andrew M – You need to re-read my posts, but if you can’t be bothered please allow me to answer your questions.

      1. “so there is plenty of choice for cars under 20K is there????” Yes absolutely there is plenty of choice for cars under 20K, in fact there has never been more choice.

      2. “so are you saying we should all drive cars smaller than those that are classified as small????….the light class” No. Drive whatever car you like.

      3. “what if someone needs a family car???” Refer question 2 and go out and buy one.

      4. “You do need to spend 25K to get a half decent small car. sure you will get into a hyjndai getz or barina for sub 20K, but what about those that hold regard for their safety and comfort.” What about the brilliant New Ford Fiesta or Focus, Honda Jazz, new Barina, Astra, Toyota Yaris, Corolla, Nissa Tiida, Micra, Mazda 2 & 3, Suzuki Swift; and, apart from the Barina, I havn’t even nominated any Koreans yet! Most of these cars have a 4 star safety rating and are under or around 20K. Wow!

      5. “and the reason why what you have to spend to get a car makes a difference is that the more you have to spend, the less relevant $3000 becomes.” Money is always relevant! If tomorrow you tripped over 1,2 or 3K on the footpath, would you pick it up? Of course! Even though you earn $50K (average) or $100K? Loads of very wealthy families were rorting the 1st homeowners grant by buying million dollar homes in their childrens names, just to pick up the 7K grant. Money is money.

      This is a great program that needs to be adopted and implemented as soon as possible. Traffic will flow better with fewer heaps of rubbish breaking down in peak hour, air will be cleaner, less oil leaked onto our roads, we are all safer – there are many many benefits… And here’s the kicker – once it’s implemented, if you don’t want to take advantage of it; then don’t.

      Phew… I’m going to bed!

    66. -1 Vote -1 Vote +1Ringo
      says:

      Why don’t hey do something like they do in California. i.e Everytime you fill your car up and you can see/smell the fumes, thats hydro-carbons venting to the atmposhere. I believe in California they have sleeve over the bowser nozzle to stop the hydro-carbons from being vented… If there are 15 million vehicles in Australia, and each of them fill up there tank, that’s a lot of Hydro-carbons being vented to the atmposhere, why can’t this be trapped??

    67. -1 Vote -1 Vote +1The Realist
      says:

      Chit Says:
      March 24th, 2009 at 9:58 am
      “Realist your a twit!”

      You obviously voted for Labor. When I get my car cleaned I’ll be thinking of you.

      “Not everyone who has a bomb of a car is a low income earner.”

      Most are.

      “Yeah we were better off with Liberals, yeah right.”

      You’re obviously one of the dimwits who lives in Labor heartland, lives and breathes Labor, thinks anyone who’s financially successful is the enemy, but never realises their beloved Labor doesn’t spend a cent in their area and ultimately doesn’t give a damn about them.

      Chit Says:
      March 24th, 2009 at 10:19 am
      “Mark Greenburg, how do you know? Do you have a CEO detector? By the way there are other jobs that pay a good income, moron.”

      Sure, if I was to ever receive a seven figure bonus my first inclination would be to buy Wheels Car of the Year the VN Commodore, right?

      Idiot.

    68. -1 Vote -1 Vote +1R8
      says:

      What we need is a scheme to scrap all the old, unsafe and polluting cars off the road.

    69. -1 Vote -1 Vote +1Nice
      says:

      Kool, I luv that idea.

    70. -1 Vote -1 Vote +1Nice
      says:

      Kool, I luv that idea :).

    71. -1 Vote -1 Vote +1Chit
      says:

      Realist, your still missing the point dumb ass, go back and read my statement, really carefullly this time.

    72. -1 Vote -1 Vote +1Bret
      says:

      Zerro, more personal insults don’t make you any less wrong.
      Sorry, but you are a total fool.
      Any further attempts to squeeze any factual information into your tiny mind are obviously pointless, so I won’t bother.

      This scheme is just a silly idea that will do nothing but cost taxpayers more money. This has all the hallmarks of another KRudd failure.

    73. -1 Vote -1 Vote +1Zorro
      says:

      Brett –

      Nothing you have posted is factual, relevant or even remotely intelligent. You’re arguments also completely lack substance.

      Wait a second, I can hear something, oh wait, it’s your mamma, yes mummy’s calling you, listen, she’s telling you you’re supposed to make things with play-doh, not eat it you silly duffa!! Now run along little one and leave the grown ups to talk…

    74. -1 Vote -1 Vote +1Bret
      says:

      Zerro, more personal insults don’t make you any less wrong.
      Sorry, but you are a total fool.
      Any further attempts to squeeze any factual information into your tiny mind are obviously pointless, so I won’t bother.

    75. -1 Vote -1 Vote +1Duck
      says:

      BK, you’ll find thats because most of time those people don’t service the car!

    76. -1 Vote -1 Vote +1Andrew M
      says:

      Zorro,
      why dont you check the list price of all the vehicles you listed to be sub 20K spending money material, add the on roads etc, and then come back and tell me how many of them you got wrong

      For your other notes 1,2,3 and 5, you totally miss my point.
      the more you have to spend, the less likely a measly 1-2K is going to be an incentive
      better off buying a 1 year old model with bugger all k’s on it and saving 10K in the process, then you will be saying “what 1-2K incentive”….

    77. -1 Vote -1 Vote +1The Realist
      says:

      Chit Says:
      March 25th, 2009 at 2:23 pm
      “Realist, your still missing the point dumb ass, go back and read my statement, really carefullly this time.”

      I saw you using the words “twit” and “moron”, so obviously it wasn’t constructive.

      Tell your local Labor rep that your hero Krudd gave me $950 to clean my $250K car.

      My girlfriend also got $950 – which she’ll use as partial payment for her sixth Louis Vuitton bag.

      I’m starting to wonder why I didn’t vote Labor all these years…

    78. -1 Vote -1 Vote +1Zorro
      says:

      Andrew M

      I said those cars are under or around 20K. And nobody buys a car for list price plus on roads. Nobody. Dealers would love that to happen, but unless Forest Gump walks in there is always, always discounting on the cars mentioned.

      An example is the base model Focus lists at $20490 plus on roads and dealer delivery, yet for the last 6 months at least you could buy one for that price drive away.

      I do agree with you on a year old car being far better value than a new car, personally I would look for a demo, but as demo’s fall under Used Car legislation I doubt they would be eligible for this proposed scheme, but here’s hoping they are!

      Having sold both new and used cars for a number of years I have seen the absolute rubbish that gets traded in, and I firmly believe that some sort of scheme to get these abominations off the road has to be a good thing. If not this proposal then something else workable.

      And cheers for a healthy discussion!

    79. -1 Vote -1 Vote +1Kerrie
      says:

      I THINK THIS IS A FANTASTIC IDEA LETS HOPE IT GETS PASSED

    80. -1 Vote -1 Vote +1KD
      says:

      I read somewhere if you did get the $3,000 you would have to buy a new car or a car less than a year and a half old.

      This is a great idea, I need to upgrade my car but wouldn’t buy such a new car. This scheme would probably change my mind.

      It will get a lot of higher polluting vehicles off the road. It’s better than than the scheme in Japan where registration cost increases as the more km you drive the car. Have you seen a Japanese website where you can import used cars from them? You can buy a 2004 Mazda xr8 for $12,000 Australian that’s done 40,000km compared to Australia they are $30,000 and all done over 100,000km. But the government wont let you import them unless you’ve used the car yourself overseas for at least 12 months.

      Cars in Australia are too expensive that’s why so many people have old cars.

    81. -1 Vote -1 Vote +1Joh
      says:

      An intriguing approach – but a wasteful idea, especially for those with an interest in older vehicles who would like a parts source. Come to think of it, it is not uncommon for new cars to be discounted anyway.

      Here in New Zealand, people simply prefer to drive older vehicles – it is not uncommon for people to still have pre-1990 vehicles as daily transport. If such an approach was considered here the politician concerned would likely be laughed out of parliament.

    82. -1 Vote -1 Vote +1steve
      says:

      so what about the penioners who have older cars ,, well maintained never thrashed (unless picked up by some young hoon and driven to death) how can a pensioner afford to bye a new car even tho there is nothing wrong with the old one ,, the new cars these days arnt worth a pice of ….
      keep the old ones alive ,, look after ur baby
      global warming hoo har,, its just a cycle,, the earth goes through every few thousand years ,,

    83. -1 Vote -1 Vote +1Dan
      says:

      Steve – “how can a pensioner afford to bye a new car even tho there is nothing wrong with the old one ,, the new cars these days arnt worth a pice of …”

      Simple. They’ll do what they have done in the past. They just won’t buy a new car, and keep the old one. It’s not like it will be compuslory mate.

    84. -1 Vote -1 Vote +1Joe
      says:

      Foward thinking; this is the kind of investment the country needs

    85. -1 Vote -1 Vote +1fredd
      says:

      Suzuki’s suggestion on this is that it should only be available for small, low polluting cars (coincidentally, they’ve just released a new P.O.S. that just happens to meet these requirements).

      Great theory, but what about those of us who (for whatever reason) require a larger vehicle. I’m damn sure their new thing wouldn’t allow me to do what I need (not that $3K would persuade me to trade in my faithful old 45 series); so it’d be just another handout that I miss out on. At least I’m getting KRudd’s $900, I suppose….

    86. -1 Vote -1 Vote +1Richo
      says:

      The MTA are a bunch of people who are interested in outcomes for themselves. Don’t be fooled by these people.

    87. -1 Vote -1 Vote +1Cynthia
      says:

      I think this is a grewat idea. Weve got an old hyndai nearly on its last legs. We are waiting on tax time to get some money to get a new car, then plus this 3 g we can get something desent. However, it may boost car sales, but as said above, what about the wrekers. The repair shops, the people who rely on old car stuff. It is sort of a take from the poor, give to rich scheme. Capitalism at its best.

    Speak Your Mind

    Tell us what you're thinking...
    and oh, if you want a pic to show with your comment, go get a gravatar!

    *
    To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
    Click to hear an audio file of the anti-spam word