FCAI calls on Federal Government to tighten rules on cleaner car rebate

The Cleaner Car Rebate - or cash-for-clunkers scheme as it's more affectionately known - would see individuals rewarded with $2000 if they trade in their pre-1995 vehicle for a new, greener vehicle.

Set as an election promise by now Prime Minister Julia Gillard during her acting role as caretaker Prime Minister, the scheme was promised to come into play by January 1st, 2011 if the Prime Minister was re-elected.

Since the Prime Minister's re-election, the FCAI has called for the proposed $2000 rebate to be upped to $5000 to make it more meaningful for buyers, in addition to tightening the list of acceptable new vehicles that can be purchased in contention of the scheme.

According to the pre-election rules, buyers would be apply to apply the Government funding to any new car purchased that has a six-star or higher rating on the Government's Green Vehicle Guide.

The list includes several hundred vehicles and CEO of the FCAI, Mr Andrew McKellar, suggests that the list should be pruned to only include ultra-efficient vehicles such as hybrids and a select few efficient diesel vehicles if the Government is to meet the carbon dioxide reductions by 2024.

This would rule many buyers out of the scheme, making it a fairly redundant venture.

What are your thoughts on the proposed changes? Would you buy an ultra-efficient vehicle instead of your pre-planned six-star Green Vehicle Guide vehicle if the new changes were to be made?