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Cash For Clunkers Destined For Scrapheap?

The Government has announced it will delay the introduction of the ‘Cash for Clunkers’ scheme (officially called The Cleaner Car Rebate) by six months, to June 2011.

We’re not surprised and indicated our doubts when the Gillard Government was narrowly re-elected and we dealt with this issue in some detail.

In fact the scheme has come in for substantial criticism since Prime Minister Gillard announced it as a vote winning carrot last July. She promised a $2000 rebate for people who update their pre 1995 car by purchasing a new, lower emission, fuel efficient vehicle. $400m was to be set aside, and this was expected to get 200,000 old cars off the road.

However it has been heavily criticised because: only three local cars would qualify (the rest would be imports): it is very expensive for the benefits it delivers:it simply brings forward intended purchases, and it could be subjected to huge rorts ( as demonstrated in the Obama Cash For Clunkers effort in the USA).

After the aptly named Federal Industry Minister Kim Carr announced the delay Opposition Leader Tony Abbott entered the debate labelling the scheme ” a thought bubble” and said that if the Government is looking to save money ‘cash for clunkers’ should be the first to go.

So the message is clear:- if you own a clunker and are looking to update don’t hold your breath waiting for the ‘cash for clunkers’ scheme to help you, it may never happen.


  1. Claude says:

    What is the point of this scheme?

    The environmental cost of manufacturing and delivering a new car to the buyer outweighs the cost of keeping the “clunker” on the road.

    Only buyers of NEW cars can benefit from this flawed scheme – the battlers are ignored.

    The rebate is worthless to the new car buyers – in a competetive market, any clunker will be worth MORE than $2K as a trade in.

    The earlier this scheme is scrapped, the better.

    November 23rd, 2010 at 11:52 am

  2. Peter Brereton says:

    You only need to look to the UK to see the problems this initiative compounds, The scrap yards can’t cope and the cost of storing the clunkers is prohibitive. Another roof insulation great idea!

    November 23rd, 2010 at 12:34 pm

  3. Linden says:

    Perhaps only Aussie Built Cars should qualify, this would help support local car industry to guarantee employment locally. So long as prices didn’t increase in line with subsidy as it has in other supported activities like the “Solar Rebate Scheme”.

    November 23rd, 2010 at 2:25 pm

  4. Phill D says:

    Have you heard about the other new bombastic Labor incentive program. It’s called cash for old tyres. It aim is to get all the bald tyres off the cars on the road (and from the tip Ha Ha). They could give $500 million to Indonesia & Pakistan to buy new cars. After all, we have given them money to build all their Infrastructure.

    November 23rd, 2010 at 5:11 pm

  5. Fidenciano Lopez says:

    Thought bubble is a very nice way of describing a brain snap. No originality just like her Gold Medicare card that sunk Latham’s election campaign. Who needs enemies when you have a Gillard helping you. Ask Rudd he knows!!!

    November 23rd, 2010 at 8:21 pm

  6. Walter Dominguez says:

    To say, yes there are plenty of:
    Commodores, Kingswood, Statesman, Torana.
    Falcons, Fairlane, LTDs, Lasers/Meteors, Capri, F100.
    Magna, Sigma, Valiant, Centurions.
    Some very old VWs.
    Mini, P76, Marina, all Leyland made cars in Australia, to say the least.
    There is plenty of other rubbish on the roads that needs to be got rid of and that’s just the start.
    I remember reading about a nice mid 90’s Mercedes being dropped off the Tip, not that long ago and the owner quoted that it was no longer economically viable to service.
    The local TAFE was given it for students to practice on!

    The scheme should cover all brands of cars and be verified through the Rego Office using the Rego papers.
    For someone to go from a genuine Clunker, to be given $2000 for it, they would have to be in the situation of a minimum of lower to Medium income and considering the purchase of a vehicle of over $15000. A good example would be someone who is just out of UNI and has just got there first job and have to get rid of their old clunker. If they were single they might buy new, but if a family and a larger car were in mind a late model used is usually the go.
    Most young buyers when they buy new don’t give up the likes of the old performance Falcon or Commodore easily, they usually like something sporty as a first new car buy, not something eco friendly to potter around in.
    In most cases people don’t hang on to a clunker for the sake of it, they only move on when their income improves.
    The buyers of new cars are still mainly dominated by Government & fleet buyers.
    Private buyers are increasing even in this global eco situation.

    November 23rd, 2010 at 9:30 pm