Government to pay $3000 for bombs?

[Nikked]

so you get 3000 to spend on another bomb?

If a persons only car is worth 3000 grand, then they most likely can't afford to buy a new one

[Bossxr8]

They should make it so you only get the money if the new car you are buying is made in Australia, keep the money here and help save jobs.

[nfury8]

NEVER EVER EVER EVER going to happen. Think about it, whats stopping anybody buing a junk heap for a couple a hundred and cashing in. What a laugh.?

[Unco]

Originally Posted by nfury8

NEVER EVER EVER EVER going to happen. Think about it, whats stopping anybody buing a junk heap for a couple a hundred and cashing in. What a laugh.?

read article and thread first, then reply. not the other way around.

[uranium_death]

Originally Posted by Nikked

so you get 3000 to spend on another bomb?

If a persons only car is worth 3000 grand, then they most likely can't afford to buy a new one

3000 grand = 3,000,000. :

But really, I am sure they will have certain rules such as the car having to have been registered recently, otherwise people with old junkers in their front yard with no intention of purchasing could get some sort of monetary benefit without really deserving it.

[SM1DY]

Originally Posted by uranium_death

But really, I am sure they will have certain rules such as the car having to have been registered recently, otherwise people with old junkers in their front yard with no intention of purchasing could get some sort of monetary benefit without really deserving it.

But that's the whole point, there trying to boost new car sales. I don't think they're concerned about the means as to which people come to purchasing their new car, it's just about trying to inject more cash into the new car market.

[Gobes32]

I imagine it would work like the LPG grant. I.e, no LMCT dealers, no more than X amount of claims every three years etc..........

[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.

[vztrt]

Originally Posted by GTP006

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.

Correct, this grant is for unsafe cars and would be OPTIONAL to people.

XA351COUPE please don't get this thread mixed up with Flappist's hypothetical.

[xy500]

This system doesn't sound like it will benefit any of the people who have to drive these so called bombs. They effectively get nothing, unless they buy a new car. Now if your car is worth less than 3000 what are the chances you could afford the repayments on a new car? It benefits the motor industry who sell more newer cars or middle income earners who have an old car laying around. The people who can only afford very cheap cars would have less chances to find one in their price range, and their only option would be going into debt. Not the best plan for low income earners.

[The Yeti]

keep in mind people todays clunker is tomorrows classic, weve all heard storys of people off loading tired GT's and monaros,

what happens when people cash in all the EL XR8's and VT monaros, were left with very few classics, as it is old tin is hard ot find becasue the scrap value went through the roof at one stage all this did was casue the price of the old tin up so shtbox chevs like mine went form being worth $500 to up arround the 3 - 5 k mark

another down side is these 3k clunkers are bread and butter cars for general fix it shops they rely on CV's in magners and ball joints on XF's to put food in their kids tummys there is a huge chunk of the economy that will suffer through this and only a very small few will gain

[Dezza]

Originally Posted by The Yeti

keep in mind people todays clunker is tomorrows classic, weve all heard storys of people off loading tired GT's and monaros,

what happens when people cash in all the EL XR8's and VT monaros, were left with very few classics, as it is old tin is hard ot find becasue the scrap value went through the roof at one stage all this did was casue the price of the old tin up so shtbox chevs like mine went form being worth $500 to up arround the 3 - 5 k mark

another down side is these 3k clunkers are bread and butter cars for general fix it shops they rely on CV's in magners and ball joints on XF's to put food in their kids tummys there is a huge chunk of the economy that will suffer through this and only a very small few will gain

Exactly. Even base model XYs are highly desirable, so base model e-series etc. eventually could increase in price. Wreckers like pick-a-part etc. would struggle too, as all the old cars would be getting crushed, and nobody would be heading there to get parts for their EA etc.

I take pride in the fact that my car is better for the environment than most as well. Cars are only built once, and mine has been on the road for over 19 years now. When something breaks, usually I get second hand parts off other e-series so there's no energy used producing new parts for it.

[Scott]

A total of 300,000 people work in an Auto Related industry in Australia according to my mate google, rough sums say that's about 3% of our total workforce.

A very large chunk of that workforce are faced with the sack because their part of the industry is becoming less and less viable every day - the nice words from CEO's overseas do little to sure up my faith in a longterm Australian Car Industry.

xy500, you seem to be focussed on a minute part of the bigger picture. You only get the $3k IF you trade your car in on a new one. That doesn't mean that all of a sudden all the cheap cars will disappear. Some will, but the offset will be that more new cars appear - which will drive down the prices of used cars a little more and lo and behold, there will still be cheap cars available.

Most people who are looking to upgrade their sub$3k car are not looking at getting a new one, so their car will still need to be sold. The initiative is to promote some new car sales, the take up might only increase sales by 1 or 2% which I expect would be bloody good news for Mr Ford lineworker and his family.

[JC]

If the MTAA thinks this is such a great idea, why don't they offer $3k minimum trades on anyone buying a car less than say 5 years old. That way the govt shells out nothing, we got old decrepit cars off the road, and the dealers have some sales. The dealers then get them crushed, and they get some of the $3k back from the scrap metal value.

[Scott]

^^ Because cars less than 5 years old aren't new cars (or have I missed your point?).

[The Yeti]

Originally Posted by Dezza!

Exactly. Even base model XYs are highly desirable, so base model e-series etc. eventually could increase in price. Wreckers like pick-a-part etc. would struggle too, as all the old cars would be getting crushed, and nobody would be heading there to get parts for their EA etc..

Exactly, who would have thought a povety XY would be worth any thing? but it is and not just as a base for a GT mock up, even XA, XB & XC are startign to comand resonable money.


I

Originally Posted by Dezza!

take pride in the fact that my car is better for the environment than most as well. Cars are only built once, and mine has been on the road for over 19 years now. When something breaks, usually I get second hand parts off other e-series so there's no energy used producing new parts for it.

This is recycleing, and is very good for the enviroment, remember that once the car is produced a large protion of its emmisions have already been emitted, to replace it with a new one starts the emissions cycle all over again.

As part of my package i get a new car every 3 years, I generaly purchase this car out at the end of its term and it becomes the family gorcery getter for another 3 before it gets sold off as a well maintinaed 6yo vehicle, as this car will be over 6 years old it will be on its dwon hill side of its 10year life cycle the value of this car will effectively drop as people will want used cars in the 3 - 5 year catagory so this also means the car I buy off my cvompany will now be more expencive so I loose twice

either way as the papers wernt full of it today I suspect it was simply put in as filler yeasterday as most of the information they referenced was quite old

[vztrt]

Here's another story on the proposal.

http://www.drive.com.au/Editorial/Ar...ttobuyoldbombs

New car scheme no piece of scrap
Richard Blackburn, The Sydney Morning Herald, March 14, 2009


Australian motorists could be offered money to scrap their older cars under a plan being mooted by some makers.
An incentive scheme could get old bangers off the road.

An incentive scheme could get old bangers off the road.

The scheme, which offers cash incentives to people who trade in cars older than a certain age, has been widely adopted in Europe and some local makers, including market leader Toyota, believe the scheme has merit.

Supporters say the scheme would deliver a three-fold benefit. It would provide a desperately needed stimulus to the struggling car industry, reduce the carbon footprint of Australia's carpark and improve road safety.

A "scrappage" scheme in Germany has had spectacular results for the car industry, with new-car sales bucking the global slump to increase by more than 20per cent in February.

The German Government scheme offers 2500 (almost $5000) to anyone who trades in a car more than nine years old for one less than 12 months old. The car must also comply with the European Union's latest Euro IV emission regulations.

In some cases, manufacturers have matched the offer as added incentive to trade in.
It is predicted the move will lead to an extra 600,000 new-car sales this year.

Similar schemes operate in a number of European countries including Italy, Spain and France.

A Toyota spokesman says a scrappage scheme was one of a range of ideas being looked at to stimulate the market.

"The automotive industry is now putting together a range of ideas that we can put to government to stimulate the market," he says.

"Toyota supports the investigation of a scrappage scheme for the domestic market. A scheme that provides an incentive for consumers to take old cars off the road and buy a new car with better environmental efficiencies is not only good for the economy and for the environment, it will also increase the number of vehicles on our roads with better safety features.".

The chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, says the industry is examining the pros and cons of a scrappage system locally.

[peachey80]

Sounds like a good theory to get rid of the POS early 80's laser, Camira's, that leak / burn oil, ineffecient thirsty EA's, VC commo's ect... (lets face it, there are quite a few out there which we would love to get off the road - Polyal, I agree, there seems to be quite a few down here in Tas !!) but as mentioned, owners of these cars generally cannot afford new ones.. BUT, people who are looking at buying new cars, why wouldn't they go and pay there $300-$500 what ever dollars to get back $3k off there new car ?
I know that's what I would be doing.
Surely this would push the price of these crappers upto $1k or $2k, then these familys could unload their POS at an inflated price to upgrade to something a little more reliable or cheaper to run around the $5k -$10 mark instead of having to fork out the $30k odd ?????
Straight away makes a new car at least $2,500 cheaper which would help new car sales.

[GASWAGON]

Why is it not 3 thou for any car purchased thats biuld is from say 95-96 and on???? As said 'NEW' will only detur MOST!!!!

[Scott]

Originally Posted by EF_6

Why is it not 3 thou for any car purchased thats biuld is from say 95-96 and on???? As said 'NEW' will only detur MOST!!!!

Because it's about stimulating new car sales.......

[GASWAGON]

And how many people are buying 'NEW' in the present 'recession'???
Incentive to 'upgrade' a few years 'if applicable' would surely be more effective???

[flappist]

Originally Posted by EF_6

And how many people are buying 'NEW' in the present 'recession'???
Incentive to 'upgrade' a few years 'if applicable' would surely be more effective???

The whole idea is to sell NEW cars so that the peopel who make them keep their jobs.

If you are not in a financial position to buy a new car then it is not for you.

[Silver Ghia]

Originally Posted by Dezza!

Exactly. Even base model XYs are highly desirable, so base model e-series etc. eventually could increase in price. Wreckers like pick-a-part etc. would struggle too, as all the old cars would be getting crushed, and nobody would be heading there to get parts for their EA etc.

Exactly what I was thinking.
Because of less demand for parts for the older cars, the wreckers will tend to disappear. How will the enthusiast be able to maintain collectable and classic cars at a reasonable cost with second hand parts being more difficult or impossible to find?

[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.

[ra_241]

Not going to work for one main reason - most who drive "old clunkers" dont want, or cant afford to buy a new car regardless of the $3000.

[Watto_Cobra]

It's funny, but I'm the anomaly in this. Most people driving around in an old bomb can't afford a new car

In my situation, I have my AU in good condition and my old EB dual-duel which is a "roadworthy" bomb. I intend to buy a new I6 turbo (G6ET,XR6T,F6) and start using the AU as a 2nd car.

EB is roadworthy but looks shocking. Dents all over. I bought it simply for a gas daily driver that already had body damage for a grand. :

Be lucky to get to get $500. $3000 would go to my new I6 turbo. Money for a bomb would actually work out nicely in my current situation.

[svo supporter]

Fair enough the Gov't is saying it'll help the new car industry. Hello. What about the aftermarket industry that thrives on the older cars, either being restored, or even the struggling family that's buying those parts to keep that clunker on the road. We won't get into the used caryards that'd disappear and the jobs that follow that side of the industry. Let alone the wreckers.
Geez, even the AU will fall into this category within 12 months. So someone saying they'll trade their EB in on a new car and keep the AU. Not for long.

I can't see it going very far. I think it's a person justifying there existance in a job . Nothing more.

[Zedjay]

most aussies buy their cars from used dealers.
most new car sales are to fleet buyers.
now if this went ahead and i was a fleet manager i would be holding on to the fleet cars a lot longer than what they do now.

it could hurt new car sales!