"Scrapping Bonus" in Germany. Could it work here?

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CoolBreeze
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"Scrapping Bonus" in Germany. Could it work here?

Post by CoolBreeze »

Back in January, Germany began their own stimulus package by offering a "Scrapping Bonus".

They basically pay you a bonus of "about" $3,000 to scrap your old car, and in turn purchase a new one. This has become wildly popular, and they may extend the program.

Funny thing is, most Germans are buying new Japanese and Korean small cars. :lol:

Nonetheless, the program has merit I think. I mean... how much of OUR stimulus money have YOU received so far? Giving a person $3,000 in my opinion is in no way welfare ASSUMING of course that he/she works and pays taxes. This is nothing more than getting some of their money back!

This program is fine I suppose for those willing to go in debt, which is MOST people.

Anyway.... do you think a program like this would play here?

http://www.spiegel.de/international/bus ... 33,00.html
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Tom Taggart
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by Tom Taggart »

They did this some 15 years ago, after absorbing East Germany. Then the thrust was to get the crappy and very smoky Trabants and Wartburgs off the roads.
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genlock
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by genlock »

In Europe, like the USA, there must be 10's of millions old cars with a few years left on them just sitting around.
For the car makers to really sell cars, the excess cars must be somehow disposed of. I suspect the USA could survive
for years on just the beaters and rolling junk available now. If you are not concerned about image, they are fine.
Something that could be done is to go out and buy all the older cars not under license. That would force buyers
to seek a new vehicle. Probably Japanese or Korean tho.
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by AmpedNow »

I like the idea, as long as it's not mandatory.

The 3k credit would more than make up for the depreciation difference of buying brand new for most vehicles, so many more will be sold. It would also make new vehicles more affordable for more people. A net positive effect on the economy.

This may be a government program with very little downside, for once...

It shouldn't matter whether or not a vehicle or foreign or "domestic", as there is no such thing as an "American-made vehicle" anyway.
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by Tom Taggart »

249,820 miles on a 2002 Taurus. :lol:

Runs fine, sitting in the driveway right now. 8)
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by AmpedNow »

Tom Taggart wrote:249,820 miles on a 2002 Taurus. :lol:

Runs fine, sitting in the driveway right now. 8)
That's a lot of mileage for an 02. I have an 03 Corolla with 108k.

I thought I drove a lot...
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Re: "Scrapping Bonus" in Germany. Could it work here?

Post by Tom Taggart »

And this was a used--err "executive" car, (formerly driven by a Mr. Hertz :P )--that I bought for $14K. Replaced disk brakes at 180K miles, replaced fuel pump and air conditioner (only expensive repair) last summer. Obviously built "Ford Tough."
My grad-student girl friend is using it on her Marietta to Athens run, we will see how long it runs.
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