Quote of the Day: The International Language of Clunker Edition
The Government should urgently re-evaluate the planned discontinuation of the Scrappage Scheme in order to avoid a sudden, pronounced and damaging fall in business.
So says Adrian Rushmore of Glass’s Automotive Business Intelligence in a company press release (via theautochannel.com). But . . .
Unlike other scrappage schemes operating across Europe, there is little or no prospect of our scheme “pulling forward” new business, only to suffer an immediate decline when it is withdrawn, and the used car market will be similarly unaffected.
So why the worry? Incidentally, Britain’s “clunker” scheme was budgeted at $500m, and pays about $1,600 per vehicle. Because the government requires manufacturers to match their rebate, the consumer savings are actually closer to $3,200. And the program is practically revenue-neutral, thanks to the uptick in Value Added Tax (VAT) receipts. But the used car market? The WSJ claims America’s cash for clunker program is actually driving used sales. Monroe News says used dealers hate it. It’s a big country. After all, one billion only gave us four days of scrappage.
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