Government to pay $3000 for bombs?

[vztrt]

Seems there is a push for the government to pay $3000 for rubbish cars.
What are people's thoughts on this?

http://www.news.com.au/dailytelegrap...015795,00.html

MTAA push for $3000 to crush old cars as stimulus plan measure

By Nick Gardner | March 23, 2009 12:00am

THE leading motor industry group is calling on the Government to implement a revolutionary stimulus plan and pay drivers $3000 for crushing their old cars.

The scheme is intended to rid Australia of polluting, unsafe cars while providing a much-needed boost to the struggling car industry.

Similar projects are up and running in France, Germany and Brazil, where they have led to an immediate rise in car sales.

Germany's new car sales are up by 10 per cent.

Meanwhile, a Bill proposing a similar plan is being considered in the US congress, under the banner "cash for clunkers".

The Motor Traders Association of NSW has written to Treasurer Wayne Swan explaining the benefits of the initiative, while the Motor Traders Association of Australia (MTAA) has commissioned think tank Access Economics to produce economic modelling on the costs.

On Friday the MTA NSW asked the Government to pay up to $3000 to crush cars more than 10 years old.

Once the car was destroyed the owner would get a certificate to be presented at a car dealership to receive $3000 off a new car.

"We are not specifying buy Australian or anything else,'' MTA NSW's James McCall said.

"We need to help the industry, including 103,000 small businesses that make a living from the car industry and 318,000 workers.''

The MTAA said there were 15 million vehicles in Australia, about half more than 10 years old.
About 2 million of those are worth less than $3000.

Once you remove vintage cars, there would be about 1.5million vehicles eligible for the scheme.

"The key is the grant has to be at least equal to what the owner would get if they traded it,'' Mr McCall said.

"Our submission asks the Government to set aside a maximum of $4.5 billion, spread over three years, which will be plenty to cover the cost.

"But it's not just a one-way street. In addition to saving jobs, which is ultimately good for the economy, the Government will get 10 per cent GST on the new car sales.''

New vehicles sales slumped to a six-year low in February, data shows.

The Australian Bureau of Statistics reported new motor vehicle sales fell by a seasonally adjusted 3.5 per cent to 73,190 vehicles in February, down from 75,879 in January.

The last time sales were this low was March 2003.

[azaxr8]

I think they should be given nothing over what the car is worth. I can see this going downhill.

[vegabass]

If you can take your 84 laser that has oil leaks everywhere and you need to carry a jerry can full of water just to keep the radiator full, then $3k would be a saving grace to some one who needs a new car. I can see this taking many old boxes off the road. If this only happened in Queensland then oz would be a better place! Ha ha ha

Let’s hope its 3k regardless of what it is and not graded in some way. It does say “up to $3000”

[WindsorXR]

Where are we going to get our bathurst day paddock bashers now!?!?!?!?!?!
I think it sucks. There could be a lot of good cars that are seen as bombs destroyed.
But on the other hand it would be ok if you had a few old crappers lying around.

[zebu]

mm yeah, going to make it pretty tough for kids to get their first car if every beat up old EA or XD or etc have all been traded in by some millionaire to get $3000 off his next merc

[4Vman]

I didn't read anything in that article which suggests the govt is going to pay $3000 for bombs...

Its simply an article about some motor industry group calling for the Govt to buy them.
I wonder where they think all this money is going to come from?

[Magna]

Originally Posted by 4Vman

I wonder where they think all this money is going to come from?

the GST, transfers and stamp duty from the new car! :

[bob 351]

nup wont work the way i understand it is you crush your car you get a subsidy of $3000 of your new car you dont get the money
there are a lot of old clunkers on the road for a reason some of us not so wealthy people cannot afford to buy a new car even with the subsidy

[Scott]

Originally Posted by 4Vman

I wonder where they think all this money is going to come from?

Certainly not from the "Future Fund" :.

The initiative is not without merit, particularly when we consider that today our PM is a dirty old man with a bag of lollies in his pocket.

Compare this concept with the solar hot water rebates, insulation rebates, water tank rebates, energy efficient appliance rebates etc etc. In an ideal world, moving old clangers off the road like this would have a significant impact on our economy, hold up more jobs than those above combined and would make a significant and tangeable positive move toward reducing pollution whilst dramatically improving the safety of cars on our roads.

IMO, not many people who drive <$3k are likely to be able to afford, or be inclined to buy, a new car regardless of the extra money but atleast the concept passes a common sense test.

It wouldn't just be handed out to everyone simply because they exist, they will need to be putting their hand in their pocket (along with their lenders) to make use of it which to me suggests that when called upon, it will add real value without simply throwing money at the masses.

Do I think it will have a major impact? No.

Do I think it is a sound concept that will show a good result for the money spent? Yes, provided the Govt didn't blow too much marketing and over engineering it.

[Burnout]

Originally Posted by GTP006

Certainly not from the "Future Fund" :.

The initiative is not without merit, particularly when we consider that today our PM is a dirty old man with a bag of lollies in his pocket.

Compare this concept with the solar hot water rebates, insulation rebates, water tank rebates, energy efficient appliance rebates etc etc. In an ideal world, moving old clangers off the road like this would have a significant impact on our economy, hold up more jobs than those above combined and would make a significant and tangeable positive move toward reducing pollution whilst dramatically improving the safety of cars on our roads.

IMO, not many people who drive <$3k are likely to be able to afford, or be inclined to buy, a new car regardless of the extra money but atleast the concept passes a common sense test.

It wouldn't just be handed out to everyone simply because they exist, they will need to be putting their hand in their pocket (along with their lenders) to make use of it which to me suggests that when called upon, it will add real value without simply throwing money at the masses.

Do I think it will have a major impact? No.

Do I think it is a sound concept that will show a good result for the money spent? Yes, provided the Govt didn't blow too much marketing and over engineering it.

I can see it working to; just be single, never owned a home, female, unmarried & a KB Laser/Datto 120Y owner. You would then be eligible for every rebate going and then some.

[DJR-351]

I have a question that needs answering....

I have a 1999 Toyota Landcruiser Trayback that turned 10 this month (last of the 75 series) and it is in excelent condition for its age, so much so that the local Toyota dealer offered me $17k if i trade up to a new V8 Diesel Model...

Now we all know you can get a better price by selling private, these cruisers are still demanding prices from $20k to around $27k in the private sales sector, and i have no doubt if i went with the trade in i would see my old Trayback a week later with a $22k price tag on it, fair enough that is how it works...

If this proposal is accepted and implimented, would said dealer still give me the $17k when theoreticaly he would not be able to put it in the used car lot as its a ten year old vehicle, that would be going against the whole idea of the proposal and would have to be seen as hypocritical if they did, so how does the dealer recoup the $17k trade?? the way i see it is he wont go anywhere near the market value, these guys dont do anything unless they are going to make buck...

So, will this mean the value of my cruiser as a trade in will go from $17k to $3k overnight and i will have to find an extra $14k to buy a new model....

If saving someone else,s job requires me getting deeper into debt in the current climate, not being sure whether i will have a job in 6 months time, then sorry boys you better go job hunting cause there is no way i would support somthing like this...

[Scott]

Originally Posted by XA351COUPE

I have a question that needs answering....

No - is your Landcruiser a bomb? This proposal is to have your car crushed if it is more than 10 years old AND worth less than $3k.

If your trade in was a 20yo EA, it's trade in value will be anywhere up to $1k depending on what you are buying. In most cases, more like up to $200. This is where the benefit lies, take you EA in, get $3k toward your new car instead of $200.

[Redmund]

Originally Posted by 4Vman

I didn't read anything in that article which suggests the govt is going to pay $3000 for bombs...

Its simply an article about some motor industry group calling for the Govt to buy them.
I wonder where they think all this money is going to come from?

Just keep on borrowing it. Labor at it's best again.

It's a disgrace that with all the income taxes, GST, duties, fuel excises etc etc etc, we are still borrowing money @ ginormous interest rates.

[ch33z1l]

Not to mention there is alot of 10yr+ cars that still run as good as when they were new.

[flappist]

Originally Posted by ch33z1l

Not to mention there is alot of 10yr+ cars that still run as good as when they were new.

And there are lots of 10 year old cars that still run as BAD as when they were new as well.......

[4Vman]

Originally Posted by flappist

And there are lots of 10 year old cars that still run as BAD as when they were new as well.......

Hmmm.. 10years ago.. now where would that put us..?

[ch33z1l]

Originally Posted by flappist

And there are lots of 10 year old cars that still run as BAD as when they were new as well.......

Thats true @ flappist.

[Polyal]

Nice in theory but wont happen.

You guys should see some of the POS in Tassie, its a joke. Found out the other day you dont even have to have a RWC to transfer the vehicle during a sale here..LOL Probably explains it.

[Road_Warrior]

Originally Posted by Polyal

Nice in theory but wont happen.

You guys should see some of the POS in Tassie, its a joke. Found out the other day you dont even have to have a RWC to transfer the vehicle during a sale here..LOL Probably explains it.

It's the same in WA. No yearly roadworthy inspection and no roadworthy certificate when a transfer of ownership takes place. And some of the piles of crud that people call cars around here are downright scary.

And that includes my XF ute

I can see this being sort of like the First Home Owner's Grant, artificially inflating new car prices. Then again, if it was brought in and I could get $3K for my bunkie ute and $3K for my Mrs' car, I'd still jump at it.

[Racecraft]

Originally Posted by Road_Warrior

I can see this being sort of like the First Home Owner's Grant, artificially inflating new car prices. Then again, if it was brought in and I could get $3K for my bunkie ute and $3K for my Mrs' car, I'd still jump at it.

but will the 6k be the deal breaker for you making the repayments on the other 20 000 odd clams you'll have to borrow.

Yea great idea, just push more people into debt..........

[Scott]

Originally Posted by Racecraft

Yea great idea, just push more people into debt..........

The thing with debt is that if you get to keep your job, you can pay it off....

[ebxr8240]

Sheesh not many old clanger Clevo's on the road then !! Lol..

[steamin63]

Originally Posted by ebxr8240

Sheesh not many old clanger Clevo's on the road then !! Lol..

no,but there still are a lot of asthmatic wheezers out there. :

[ebxr8240]

Originally Posted by steamin63

no,but there still are a lot of asthmatic wheezers out there. :

Thank goodness for that!! Still too powerfull for some!!
Hook line and sinker Lol...

[SM1DY]

I don't see this a as huge issue, just because someone will get $3k for there old car doesn't mean they'll have the rest to cover a new car.

[The Yeti]

that will lift the price on drive lines for my projects, and also lift the price on cars under 10yo

not a positive thing IMHO

[seduced_xr]

haha this is good. if they wanna give me 3k for the old EA they can crush it burn it strip it i dont care. 3k and its theirs. its probably worth $500 sale price on a good day haha

[Dezza]

Must go buy 10 $100 shtboxes now :P

[AUIIForte]

Originally Posted by Dezza!

Must go buy 10 $100 shtboxes now :P

That's true, there must be some kind of limit, otherwise people could accumulate, potentially, make good $$$ off this.

Buy a whole heap of crap boxes from people who are not informed about this deal, and make a fortune. Or, more realistically, be able to buy a new car without having to add a single cent.

Haven't looked deep into it, but are there limitations or anything like that involved?

[bob 351]

whats the point in buying 10 shyte boxes you think your going to get 30 grand not likely this looks to be a one off you give you old banger to metal reclycler he gives you a refund docket you take that to you new car dealer you get 3 grand of the price of a new car there is no cash as far as i can understand

READ BELOW

Once the car was destroyed the owner would get a certificate to be presented at a car dealership to receive $3000 off a new car.