The car industry wants people to be paid to crush their cars and use the money to buy new, more efficient vehicles.(ABC news on line)

Dear examinator,

We've got two cars. A Holden Statesman, and an old Ford
Fairmont (- which we use for shopping et cetera). We'd happily
get rid of the old Ford - but, $3,000 won't buy us another car,
as this program is to get rid of the old, and buy new -
and we don't have that extra cash to be able to buy a new car.

I don't think this program is going to work because the people
who drive the old cars can't afford new ones. Whereas the
rich replace new cars every few years. A large business exists
in second-hand car dealerships and this proposal would affect
many of them adversely. My understanding is that
this proposal is to stimulate the new car industry (at the
expense of the used car industry).

We would gladly replace our Ford for the $3,000 because for the
money we would get a better second-hand car. Unfortunately,
we could not afford to buy a new car - therefore we would not
qualify for the $3,000 - as part of this proposal seems to be
that you crush your old car in exchange for buying a new one.

It seems that this a way of re-vitalising the new car industry -
but in these difficult economic times - how many people are
really going to be able to afford to do it?
Although getting rid of the really old bomb polluters off the
roads is a good idea.

Examinator, we are hearing much about what the car industry “wants”. Yes it could be seen as a grab for cash. Some might see this as a grab for jobs and to save the industry in Australia.

Successive governments have been convinced to pour public money into this and other industries. How effective might that be? I’m not convinced it’s a good financial plan.

I tend to look at the bigger picture and over the longer term. I think our entire manufacturing industry under threat. Due to FTA’s, the WTO and globalised industries, Australia is losing tariff and preferred supplier protection. Many developing nations can do the job cheaper, not just because of labor costs, but also because of minimal infrastructure and regulatory factors, which in many cases outstrip base labor costs.

As for our automotive industry, we have seen public money given to Honda to locally produce a Hybrid that they intended to “assemble” in Australia anyway? We are investing in Holden to develop an Australian Hybrid? And we continue to invest in plants that produce engines and component parts. At the same time, the new mid sized Holden’s are made where? Oh yes I remember, South Korea!

As part of the Obama car industry bailout for GM (Holden), the US government will own all GM assets worldwide. As the “dummies” we are, we will now invest even more public money to breathe life into failing and foreign government owned assets.

Grab for cash? Yes. More to the point, political blackmail, give us more public money or wear the redundancies.

if they were serious about selling cars they would give intrest free loans for say 18 mths ,in that time all payments pay off the loan, after that time nominal intrest applies ,nominal not normal ,see that normal for car loans is un-reasonable ,

thanks to the marketeers grosly selling over priced cars to anyone stupid enough to pay their rip off intrest rates[who funny enough now hold the low intrest govt cash to lend at the same old gross profiteering ursury rates

but those who have no voice know the demon atocracy is seving its own elites, and the poor let them have work for food ,and pay the rest for the subsidised landlords income offsets ,and their subsidised super top ups

its all a great scam man demon mockery,
run by the beauro roc rats, as the 2 party line scam
using the party machine ...to do as the lawyers advise... no media wont explain it

[no lawyer will explain it , still you believe wages is income , the tax players chew up the spoils ...while the tax payer pays as they earn] its not earnings tax, its not wage tax] ,its income tax time you learnt what 'income 'really means [profits earned by no value adding]

Good idea but only if upgraded vehicles are environmentally friendly. The reluctance of Australians to utilise public transport has resulted in heavy traffic in major cities and urban areas and is impacting on human health.

Motor vehicle emissions desecrate the environment and kill humans! An increase in population will see an increase in automobiles on our roads.

Sooner than later we will need to think beyond our pockets. We're way behind compared to several other countries in mitigating traffic pollution.

"The growing body of international and Australian scientific evidence confirms the increasing risks to the public posed by toxic fossil fuel exhaust emissions....:"

http://www.onlineopinion.com.au/view.asp?article=3861&page=0
http://kats15blog.blogspot.com/
http://www.thewest.com.au/aapstory.aspx?StoryName=449581

Would you trust a car sales man?
Thats the hands the money would end up in.
We would see wrecks towed into car yards for the cash.
But you can just bet the price of the new car would be inflated so both us and the government paid full value.
A cash reward for crushing the car?
Yes but not that much, after all we pay for it in the end.