Car scrapping incentives in Germany

Archiv – In a bid to spur new car sales, the German government has followed the lead of France in introducing a vehicle scrapping incentive. According to experts, plans agreed by Chancellor Angela Merkel’s coalition to pay premiums to buyers of new low-emission vehicles have the potential to boost sales by 300 000 this year.Germany | In a bid to spur new car sales, the German government has followed the lead of France in introducing a vehicle scrapping incentive. According to experts, plans agreed by Chancellor Angela Merkel’s coalition to pay premiums to buyers of new low-emission vehicles have the potential to boost sales by 300 000 this year.
It has been agreed to pay Euro 2500 (US$ 3300) to drivers who buy new, environmentally-friendly vehicles this year while at the same time scrapping an existing vehicle which must be at least nine years old. The average age of cars in Germany has never been higher and currently stands at 8.5 years, according to Price Waterhouse.
The German recyclers’ association BDSV has broadly welcomed the initiative but is calling for the vehicles to be recycled domestically. According to the organisation, the incentive should be paid only on presentation of a certificate from a recognised dismantling operation.
The initiative in Germany follows a similar French programme of incentives for scrapping older vehicles which, says manufacturers PSA Peugeot Citroen and Renault SA, prompted a 30% increase in their December orders. Government incentives include a Euro 1000 (US$ 1385) scrapping reward for the owners of old cars who buy new, less-polluting vehicles.