Gillard wants to scrap old cars

By Anthony Crawford | July 24th, 2010

The Prime Minister, Julia Gillard, wants to get old cars off our roads (those built before 1995) in favour of new, safer and more fuel-efficient vehicles, and she’s going to give you two grand to make it happen.

It’s a good deal and we’re all for it (we think it should be a broader reaching proposal and apply to all cars that were not factory equipped with both ABS and ESP), given the appalling condition of many of the cars, which many of our youngest drivers are behind the wheel of these days.

Andrew McKellar is the Chief Excecutive of the Federal Chamber of Automotive Industries (FCAI) and he says, “One in five vehicles on Australian Roads is more than 15 years old with many of those not meeting the environmental and safety standards we now expect.”

That’s well over a million cars on the road that have no ABS brakes and many more without the lifesaving Electronic Stability Program (ESP) fitted.

Mr McKellar also said that “A key part of any strategy to reduce carbon emissions from road transport must address the impact older cars will have on the environment.”

It’s about time the Federal Government backed a program that encouraged drivers to buy a new car, rather than one of the cheap oldies that make up such a large volume of cars on our roads today.

The details of the Prime Minister’s proposal have not yet been released, but whatever they are, it’s a great start to many more people in safer cars and that’s good news for anyone who drives.

More on this story as the details come to hand.

Shak

CA the details have bee released, GMinsidenews reported that buyers of new cars under the LCT will get $2000. But it only apply to cars which are 6 or above in the Green car ratings.So this means some of our locally built cars miss out such as the Current falcon crop and the SIDI Comodores. Also the Aurion will not be applicable. but it has been reported that the Cruze, EcoBoost falcons and the hybrid Camry should be fully applicable.

adnan

Hi guys,

i am currently using an 1995 Toyota Camry. its realy not safe to use these cars nowadays. but i can buy a brand new car even its hard to affored a car by bank finacne becaue intrest would be more then the money offered. on the other hand the cars with less prices like 12 to 14 grands are not given 6 green car rateings.

i think this policy should be a bit change. rather then going from the bottom strate to the top.

1: old car drivers should submit their cars and get 2 grands from GOV.

so they could buy even safe cars then before they been using by adding a bit more money from their pocket for their safty. there would be maney cars in the market with AIRBAGS and basic safty systems.

but as long as this is concern that get rid of my old boom car and buy a brand new car like Hybrid camry (which i can never afford) its not sutable for me. may be i will keep driving my old and unsafe car because i have no money.

http://www.caradvice.com.au Jim Goose senior

The photo of that VN must be years old……I can’t remember the last time I saw one in that condition! As for the policy,it sounds OK in theory,as long as Gillard understands that owners of classic cars in showroom condition would never part with their pride&joy at any cost,let alone 2grand. There are old cars and there are old cars,and yes……some really don’t belong on the roads.
George

I can’t afford a newer car, how is 2 grand is going to help me?

Nifty

It won’t help a lot of people get out of old cars. Most people who have them have no money so $2000 won’t go very far towards getting a new car as that is all you can get. It does not apply to second hand ones.

Silver Streak

This $2000 rebate is completely independent of any deal you can get from a dealer for your trade-in, not that you’ll get much for a 15+ year old car these days, but it is an extra 2 grand that you didn’t have before. I’m in the market to get a newy soon, so I had better hang-on for a while longer. My car is just turned 20, so I better keep a good eye on it. Although the sale of very cheap cars may go through the roof. Especially if you can pick one up for say $500, it’ll now be worth an extra $1500 at trade-in time. But of course the list of “allowed” cars may be restrictive.

Dlr1

one of the proposed conditions is that you must have owned the car being traded for a period of two years to qualify

Kev

It’ll help by reducing the price by $2000.00. Geddit?

Micky

Brilliant idea. Australia is the only country in the world where you see 30 year old rubbish still getting around on the road.

Baddass

Only country eh? A trip to developing countries would set you straight buddy. They still travel around in clapped out Beetles and Mercedes’, both well past 30 years old!
Hyundai45

sounds like you haven’t been to tokyo before,

in the car world:
the japanese drive their cars til they blow up. japs dont believe in wastage.

koreans on the other hand buy/trade in for every new model that comes out. koreans dont care about the word “waste”.

aussies love old-for-new,

and so do i,

Devil’s Advocate

Japanese drive their cars till the blow up Hyundai45? How do you explain the HUGE Japanese grey import market and sheer number of low km, relatively young cars flowing out of Japan to various nations around the world? That mixed with Japan’s increasingly stringent emissions rules makes cars over 6 or so years old virtually impossible to sell second hand and hence worth virtually nothing.
The average age of cars in Japan is less than 10 years old. That is less than the EU, US and Australia to name a few. So by this do you mean that the average Japanese car only lasts around 9 years before they blow up?

timmy201

The problem with this, as seen in Europe and USA is that no cars will be worth under $2000 anymore…

Micky

Well, the price of cars over 15 years old will increase, due to the reduced number (being destroyed by being traded in). However, the price of cars under 15 years old will decrease (due to the large number of new cars being sold). So, while the cars at the absolute bottom of the used car market will go up a little, those in the “middle range” where most people buy, will be more affordable. If it means newer, cleaner, and safer cars in general, I’m all for it.

nickdl

So how about a grant for those who don’t already own a car, like say “our youngest drivers”? P-platers can’t afford newer, safer cars so why not lend them a hand?

This policy has a few flaws. Most who own a crappy old car do so because there is no way that they can afford a newer one. $2000 isn’t really going to help replace an old Commodore with a $20k new Holden Cruze.
Gary

Unfortunately more drivel from Julia ‘All-Talk’ Gillard.

At least it will ‘probably’ not burn down your house…..
riceboy

it’s all about “moving forward” in a new set of wheels…

Barney

lol, HA HA HA HA HA! good one!

Simon

You laugh now, scary thing is she will probably take office for another 3 years.

Hyundai45

HAHAHAHAHA i saw that on the 7pm project

“moving foward” hahaha

http://blahblah peter jones

who can afford a $20-$30k car??.with abs ,esc or any other acronym .. just another way to stuff up the wrecking,scrap ,secondhand business in this country .i wont be getting rid of my 1993 festiva for $2000.no point!! .just another no idea ,idea from julia gillard …poms have stuffed it and so have the yanks ..long live country victoria !!
Whatevs

Many of you are missing the point. I’m not a Labor supporter, but Gillards proposal has its merits. The government can’t afford to give everyone a $20k car. Its $2000 you didn’t have before, and more than alot of cars over 15 years are worth.
The bad parts of this is shunning the local makers, Green cars should be supported, but what about local industry? an SIDI Commodore might not be as fuel efficient as a Cruze, but it was engineered, and built locally by Australians.

Blitzkrieg

But if your building a $200,000 school hall the govt will give you $800,000 when you give them a bill.

John Graeme McTighe

The real costs are the scrapping of an old car, extraction of resources, manufacture and assembly into cars, all for a car that produces marginal gains in economy of older 2.0l cars as seen on tonights news.
Think of the energy consumption it takes to produce a new car. The cost of buying a new car is often beyond the capacity of those who cannot afford a replacement.
So which is environmentally and economically responsible? Keep the older car in good order and watch your mirrors.
P.s. my 2005 Holden Vectra uses 2.7l of oil per city service interval or close to 5.0l per country service interval. Columbo rocks!!!

T

you own a Vectra? you have my sympathy!
Jack

Yeah, I certainly suspect it will keep new car sales and the economy running nicely, people working, energy being used, and materials being used…

Funny that a car market running close to 1 million sales a year should need extra support (effectively a subsidy…)

How about remove the Luxury Car tax (>57K) instead?

Given that it is an interventionist policy, pity it is not directed at Australian manufacturers.

AAA

It’s cool to see those old 70′s and 80′s cars on the road but.

http://www.nissan.com.au matt

I agree dont scrap the good old cars, then what will we have to look back upon

Barney

Waste of public money! They should build wind farms instead, which will last 30-40 years and benefit EVERYONE.

That WILL create construction and maintenance jobs, this proposed $2000 scheme will only create factory jobs overseas.

Andrew

That’s great, but you can’t drive a wind farm.

Barney

The point of a wind farm is to create jobs HERE, this $400 million car scheme will just create jobs overseas because small cars are not made here.

Jack

If there is to be intervention in markets, I am all for it being directed to jobs HERE.

With a very open car market and current Australian consumer choices, we are effectively subsidising manufacturing jobs in foreign nations. What would the ACTU say to this ALP policy?!

Every single new import purchase removes our nation’s capital overseas. Every one. As a consequence of this we take on more debt, private or government. That debt is eventually paid for by selling the nation’s assets, such as Telecom, Commonwealth Bank, private real estate, Australian listed companies. In the meantime interest is charged on this debt, and this robs Australian Enterprise of funds to grow our domestic economy.

Consider this the next time you buy an import of any description – buy Australian made.

xnov

amen , NEED change all car before 2005 , i love american cars
TomJ

I agree with the idea, but the concept is flawed.
T

Oh and

my gas guzzling 1975 360v8 chrysler will need another zero on the end of the 2 grand for me to part with it Julia!

Farkannel

Does that mean that now I cant get my ’68 Mustang re-registered which is in perfect condition and beats these crappy 2000 models on the road today ?

Blitzkrieg

Another false claim by the govt to disguise a tax in the name of “safty”.Do you not realize they will simply raise all the costs associated with the regestration of older cars,stamp duty,pink slip,tranfer fee and just the general rego cost.They’ll start at 15yrs and then perhaps drop to 10,or 7yrs down the track. The people who cant update will end up paying more.
There will be no mention of a rego increase before this election(like the alcopop tax and luxury car tax that weren’t mentioned with keven 07)but mark my words,once they get in they will force it on us.
http://ninemsn bryan

I own a 1960s classic, does she think I would give it away for 2 grand. I am registered to vote. why does foolia get around in a V8 instead of a Cruze.
What happens to all the 20 year old cars, I would say the car yards wont want them, they cant sell them. So another polution hazzard.

Demonaz

I think you’re missing the point…

toxic_horse

Old cars are part of aussie culture.
I look back on my teenage years , up every night with my mates working on cars in my parents garage. Going to the wreckers to get another gearbox which we could fit in a couple of hours with only wheel ramps.
Those were the good old days.

Hezath

While I agree, it shouldn’t even have to come down to that. Working on old cars is something a huge number of people enjoy. I absolutely live for old cars, they keep me mentality stimulated and give me satisfaction. Some people enjoy spending money on expensive clothes, some people enjoy severe drugs or binge drinking 4 nights a week. I like making and fixing things, and my interest supports REAL LOCAL businesses and creates communities of like-minded enthusiasts. Spreading propaganda about old cars being worse for the environment is not winning me over!

filippo

Well it beats dinosaur Abbott’s policies of bringing back leaded petrol, reintroducing smacking in schools and teaching school children that the world is flat and was built in 7 days.
Gillard Sceptic

This sounds like another (red) hair brained scheme that will be a big screw-up. Getting people to sell the clunkers doesn’t necessarily take the clunkers permanently off the road. I see the creation of a whole new rebirthing racket in clunkers whose market value will have been lifted a little because of their increased effective trade-in value. The same clunker could be resold numerous times at a cost to the tax-payer of $2k a time – no safety gain. Another screwed-up Labor program born out of good intentions but lacking proper implementation consideration.
Micky

I just thought this scheme over some more and it’s quite flawed. $2,000 might not be nearly enough to convince people to ditch their old cars in this country, because here, a great deal of cars over 15 years old are still worth considerably more than $2,000. In order to find cars for less than that price, you really need to start looking at cars 20-25 years old, and these are cars that are likely on their last legs anyway. So basically the offer is for people to ‘fast forward’ about 2 years or so. Big deal. Now in the USA, the scheme worked because there, almost all cars of that age are worth 2 grand or less, so it makes alot more sense (as well as in Europe).

Gillard Sceptic

Quite right, Micky. Successful market intervention requires a lot more mental acuity and real world experience than most politicians (especially Labor ones) possess. Witness the recent monumental screw-ups with home insulation, telecommunications, school assembly halls, overpriced school computers, impractical Internet filtering, mining tax reform etc etc. This $2k clunker scheme is ill-conceived, ill-considered and doomed to become a disaster, like the Labor government. Looking back or moving forward, whichever way you look at it, Julia Gillard’s government will be a huge embarrassment and liability to Australia.

j

Labor, once again throwing money at stuff to fix a “problem”.
http://www.facebook.com/profile.php?id=1435885244 Yani Hendriawan

yeah but let’s make sure we don’t scrap the classic old cars. people like those
Anti

school halls = rort
free insulation = rort
$2000 kick back for cars, will = rort

what a stupid government it’s time to wake up. We are all paying for these failures!!!…

Lox

Good ideas, just executed poorly.

go away

good ideas dont excuse pathetic perfomance.

wake up, its your money they are wasting too.

Hyundai45

i <3 KRudd
Hayzel

I can’t believe how STUPID and NAIVE people are sometimes. This policy does not require you to make compulsory trade ins, this policy entitles you $2000 should you want to buy a new SAFER and GREENER cars! No one is telling anyone to scrap their cars, all Julia Gillard doing is to motivate people, younger and old, to actually replace their cars with new safer and better alternatives.

There have been many deaths on our roads throughout the years and the fact is as clear as day. Most of the time the drivers of the respective cars are at fault in causing accidents and it is quite difficult to rectify unless done with new convolutions to our licensing. In view of this then why not motivate people to drive safe cars with ESC, ABS and lotsa airbags for example, so at least if you are a bad driver you kill yourself or tohers on the road or at least minimise the damage?

Get the point people? If you want to drive in your own death traps, sure no one is forcing to do anything but just know that you put yours and other lives at risks. If you have the money and sensible anough should you want to buy a safer greener car then you will get $2000 simple as that.

Australians can be a bunch of nagging little babies sometimes..QQ all the time.

Gillard Sceptic

Hayzel, I’m afraid the naivete is yours. Anti is right when he/she anticipates this will be yet another rort. Not all roof insulator companies are rogues but when the opportunity was served up by a naive and incompetent gov’t there were soon plenty of rogues in that industry who seized the opportunity to grab a quick buck at the taxpayers’ expense and to the public endangerment. Do you really think our enterprising motor traders will be less capable or willing to help themselves to a Labor sponsored bonanza? They’ll be there with their ears pinned! I think I’ll start a business called “Leesa Wreck”. You’ll be able to “buy” a qualifying clunka (it might not exist) to trade in and I’ll “buy” it back from the dealer (possibly me) so that I can do it again, and again…. I feel a good year coming on

Frenchie

Your talking about wrecks and the policy is talking about old registered vehicles that are driven on the road.

Farkannel

How does this go for the pensoner who cant afford to update their vehicle to please idiots like Gillard ? I have a ’94 vehicle which has just passed the roadworthy test and still drives as if it was new, I have even up-dated the engine to a ’99 model which has all the running gear including ABS…..So, theres no way I’m going to sell my car for a lousy $2000.00 and put myself in debt possibly for the rest of my life….So how much do you think a pensoner earns a fortnight Gillard ?

Lox

Then don’t. Is it that unclear that this isn’t a compulsory thing to do?

Why are people finding this concept so hard to grasp???

Devil’s Advocate

I read some more information of the scheme in a newspaper. Apparently you claim the money through Medicare and it is only available for the first 200,000 vehicles traded in under the scheme. Eligible vehicles are the Camry Hybrid, Holden Cruze, Falcon Ecoboost when released, Corolla, Mazda3, Lancer or a Getz. The article wasn’t clear if it was only these models or not.

Interesting using Medicare as the method of claim/payment…
http://www.caradvice.com.au Jim Goose senior

I went to the all-Ford day at Eastern Creek raceway today-I was surrounded by some absolute works of art! They looked and sounded great…..and took pretty good photos. These cars bring joy to so many.Imagine these guys trading them for a Prious just so they can get their hands on 2grand…..it ain’t happening! I walked out of that show nearly in tears with envy.
Simon

The whole aim of the exercise is to have newer, safer and more efficient cars on the road is it not? (And to buy a few naive votes no doubt).
A better solution would be to contribute the $2000 towards the registration costs of select efficient and safe cars. Guidelines would be based around consumption, emissions and safety rating. That would pay the registration for the 1st 3 years of ownership for most cars in most states. Fleets in particular would get on board with such savings on offer.
This would increase sales of the “desirable cars” and in due course provide a large supply of cheaper second hand cars that are both safe and efficient.
Sadly I fear this $2000 is going to pump up the price of cars on the “list” which means dealers will benefit from Labor’s “initiative” and not the consumer.
I’m angered by the fact the government is raiding funds from the solar scheme to fund this scheme as it currently stands.
Andrew M

Experts are now worried about the aftermath of these schemes O/S, isnt this alarm bells enough??

2K is nothing in the scheme of things when forking out 25K for a new car.
If money is the real issue for the consumer, they would be financially better off, and greener by purchasing a “recycled” (2nd hand) car with low k’s.
That 25K car with 30K’s on the clock would prob be around 15K which would save far more than the 2K incentive, and save the emissions from the smelter and spray booth kicking over to manufacture 1 new car.

I’d like to know some real stats, But I would hazzard a guess that most new car buyers are repeat buyers meaning those shopping the 2nd hand market, always shop the 2nd hand market, and will continue to do so based on the economics of the investment, and never having the urge to keep up with mr and mrs Jones.

Also if this scheme does inflate vehicle sales, the current discounting will go out the window, and the 2K will come off the full RRP, not the already discounts manufacturers are already heavily doing.

Also, if such a scheme were to be introduced, it should only apply to Australian made vehicles
MatthewM

As long as it is not mandatory, I quite like driving my 1987 Toyota MR2.
Joh

I think this is the wrong idea, particularly when the cars being scrapped likely will have years of life left in them – keep in mind too that the manufacturing process uses up plenty of resources. Also, if this does happen, what about the parts to keep the remaining examples on the road? At the end of the day, this is just a prop-up for the protected local car industry that the government already has millions invested in.

Here in New Zealand, where the average age of cars tends to be 15 years, and people prefer to drive older cars (all cars here have compulsory 6 month Warrant of Fitness checks), if such an idea was proposed, the Minister concerned would be laughed out of the Beehive!
Material Guy

what’s the problem? trade-in’s lately have been pathetic because of the low demand, this will reinforce the market, a lot of trade-ins are not worth $2k.
Ian

Another half thought out scheme by people who have no idea about the lives of ordinary people. Do they not think that most people would enjoy driving a new car if they could afford it? $2000 is not going to help those people battling to pay the bills and it may just make their situations worse by encouraging them to buy a new car (with a loan) that can not easily be repaid.
All this scheme does is try to make the government look good in an election period.
By the way, we drive a new car and paid cash for it.
ABMPSV

It worked overseas. There is a lot of cars around $20,000. If you $2,000 from government that is 10% of purchase price so you pay only $18,000. If your old car used around 13 liter in the city and the new 8 that is another $1,000 saving every year. After 5 year patrol and government cash worth min $7,000.
Jake

Cut the luxury car tax! By doing this and bringing down the price of superior cars (in safety) which are priced over that threshold, local car manufacturers will be forced to drop prices as well to stay competitive.

Thus having a follow on effect to the used car market, which will make that $2000 go a lot further.

The effects will not be immediatte, but what we need for this issue is a fix from the root cause of why younger drivers are driving cars so old. Not another band aid.
Ezz

People – you are not being forced to sell your old classic.

Rabid Tories need to politicise everything. The fact is we need less polluting cars on the road and the dinosaurs who are happy to breathe the smog in cities can continue to whinge (without a solution) and put their heads in the sand.

I’ll be keeping my old V8 mind you, but at least understand the merits of encouraging the masses to reduce pollution.

Simo

yea only the unworthies should go. well kept classics should continue to remain on road.

Jimmy

Sounds good in theory, remains to be seen how well it will work, but it’s ideas like this which are actually proactive and honest in reducing deaths on the roads. Not hidden speed cameras at the bottom of hills, ridiculously low limits etc. I’ve always wondered why there isn’t more emphasis placed on getting safer cars onto the road, it seems such an obvious idea in reducing road tolls.

Simo

reducing death toll on roads and not actively generating revenue i.e. preach speed kills then install speed cam at every street? You think the government is out of their mind?

davo

Wont the car dealers just add $2000 to the price of cars now?

Instead of giving away money how about setting up a low-interest loan scheme to help people on a low-income get finance to purchase a newer car?

Pauly

I can see that happening, just as the price of installing LPG jumped overnight as soon as the rebate was offered.

yowza

This $2000 incentive to get BOMBS off the road has potential.

It really won’t help you get a new car, as $2000 is less than 10% of almost ALL of the recommended new cars.

However it might help convince some youngsters to buy scooters or use public transport.

Victoria, Australia in general is about to undergo a dramatic “re-furbication” of the public transport sector in the next 10 years or so.

I’m surprise a lot of parents “allow” their children drive BOMBS on the road anyways. I KNOW its about affordability and all, but I’ve seen way too many broken down cars that has caused traffic on major roads. Now imagine if that was at night time…. or in the middle of nowhere. Bottomline… if you’re car has issues travelling 100km without breaking down then you shouldnt be driving it.
http://blahblah peter jones

why does julia want to continue with the myth of trying to encourage more people into debt ?? does she have shares in banks and other financial lending institutions !!!this one may stimulate but also decimate secondhand ,spare parts wrecking and scrap prices around the country .w’ell all be broke with no way of cashing in the family silver soon !!
Dennis

How is this going to support Australian Companies? Majority of cars are imported… Where will the money end up? Not here. Again!

Devil’s Advocate

Just as well there aren’t any Australian car companies then…

jono

I can see a massive rip off coming on. Much like the pink bats i see dodgey wreckers essentially rebirthing wrecks for a second, third, forth wrecking. It will be a revolving door that once again the government will not police properly. You would have to be blind freddy not to see how this is going to be taken advantage of. It will have to be so closely monitored, and as we know the government couldn’t organise their way out of a paper bag so we are stuffed…again.
United TROTS Services

I see everyone talking about Commodores and Falcons AND that of people who cant afford new cars. What if people like me who have a number of cars, it works out. I have a unregistered 81′ Citroen and 83′ Subaru Sherpa. Are cars like this still eligible or only aussie made cars??

Still finding a tad hard to understand the concept of this idea. Do we have to trade in our old car and buy a new car to be eligible for the $2000 rebate??

PFFFF.. Bit lost
Eric

It’s your choice, if you trade your old car the dealer will give you the trade in/wholesale price of what the car is worth Medicare will give you an EXTRA $2000.

If you love you 1991 corolla or can’t afford a new car (that can had had for $50odd per week on finance) then keep driving what you have.

Eric
BK

Anybody here want to buy my 1995 EF Falcon for 2 grand. Comes with aircon and 4 speed auto.
craig

o.k i get that newer cars are(generally) more fuel efficient and less polluting, but i just don’t buy the “safer” thing, A car is only as safe as the nut behind the wheel.
My first car was a 1971 xy ford falcon, 4 wheel drum brakes, skinny tyres, no- a.b.s, e.s.c, crumple zones etc, yet even by todays standards i didn’t consider that vehicle to be “unsafe”, i was aware of it’s capabilities & limitations and drove it accordingly.

From a safety perspective the $2000 should be spent on subsidising defencesive driving courses so young drivers get a hand’s on experience of what a car can & can’t do in different situations, simply putting them in a new “safer” car that does everything for you doesn’t give you any real world experience.
Norman

Whenever governments interfere with the free market they create more problems. Its analagous to inviting a foreign predator to deal with a native pest.

The market is already turning towards newer more frugal cars, it doesnt need more incentives.

Any time their are cash bonusses for something, someone somewhere is paying for it. 4000 rebate has to be paid by someone. Nevermind the room for backroom deals created every time there is some sort of incentives package offered.
George

I’m keeping my 1993 Nissan import thank you very much.

My 17 year old car is in better condition than most of my family friend’s cars who are less than 10 years old…