By on October 28, 2013

Seat_Leon_III_(front_quarter)

The Spanish government is extending its own version of “Cash for Clunkers” for the fourth time, as Spain tries to boost sagging car sales in the midst of a severe recession.

Buyers will get a 1,000 euro subsidy if they trade in a 7 to 10 year old car for a newer, more fuel efficient one that costs less than 25,000 euro. The $97 million program will last for six months or until the subsidies run out, with the previous three programs helping to move 30,000 cars.

So far, Spain is the only country to initiate such a program – sales were up 29 percent last month, with the program credited for spurring much of the demand.

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13 Comments on “Spanish Scrappage Scheme Now In Its Fourth Iteration...”


  • avatar
    ash78

    I don’t know if I agree with the idea of encouraging one of the most unemployed nations in the modern world to put more and more people into one of the worst asset classes in existence. Especially because the old cars (which could be sold to the poor in Spain or elsewhere to help their labor mobility) are getting scrapped. Weird.

  • avatar

    1000 off a 25000 euro car doesn’t sound like that great a deal – cash for clunkers gave something like 3500 to 4500 off, with no minimum purchase price.

    For an incentive that small, I suspect most of the people buying cars were either going to buy a new car anyway, or are just making a purchase slightly earlier than they would have without the incentive. Alll they are doing is robbing tomorrow’s car sales for today’s car sales. And crushing a few perfectly good SEATs in the process.

  • avatar
    Joss

    This is to get the employed Spanish middle class spending again. Spain’s a country that prefers to forget its past. Nobody wants to talk about Franco, mass graves and forgotten execution sites. Not the people, not the government.

  • avatar
    jeffzekas

    Kinda wish they’d do Cash for Clunkers again here in the U.S.- my cars were too “new” to participate in the first program!

    • 0 avatar
      PrincipalDan

      My father-in-law had the opposite problem, the only vehicle he wanted to ditch was to old. But it sure hasn’t gotten younger.

      • 0 avatar
        BMWnut

        I was just thinking that if I lived in Spain my cars would be too old to qualify. They probably figure that if you have a car that old, you can’t afford a new one. They are quite correct. In my case, anyway. Sigh….

    • 0 avatar
      CoreyDL

      I wish they had NEVER done it. All it did was rob the used car market of serviceable used $3-5k cars. Now you can spend $3k for complete garbage, or $7k for something decent with very high miles.

      • 0 avatar
        PrincipalDan

        Actually I’m sure I could have convinced the old man to put it on the market with an add that said “Give me $4,000 to save this from the crusher” and someone would have bitten.

        The vehicle in question? A 1972 Chevy long bed with a 350V8 automatic, and no other options. It’s a bit rusty despite its NM pedigree but he feels he doesn’t drive it enough to justify keeping it. FYI he’s the 2nd owner from back in the late 70s early 80s.

  • avatar
    schmitt trigger

    Please correct me if I’m wrong…

    but didn’t the USA C. for C. program also specified that you had to replace your low MPG vehicle for a higher rated one?

    • 0 avatar
      fincar1

      That was easy enough to do, with many of the turned-in vehicles being full-size vans and pickups that did well to get 10 mpg. The “cash-for-clunkers” program caused me to not set foot on any new or used car dealer’s premises for more than a year through sheer disgust at this display of overbearing government.


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