79-What_is_a_scrappage_subsidy

79-What_is_a_scrappage_subsidy - What is a scrappage...

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What is a scrappage subsidy? A scrappage subsidy is a "pay-to-scrap" scheme where a government offers a financial incentive to car buyers if they scrap a car that has reached a specified age and in its place they are offered a payment towards the cost of a new vehicle. Germany and France both offer scrappage subsidies to consumers and there is a growing number of voices from inside the UK business community and motor vehicle industry clamouring for one to be launched in the UK. The Retail Motor Industry Federation and the Society of Motor Manufacturers and Traders (SMMT) are at the head of the queue lobbying for a scrappage scheme to be introduced as soon as possible. Scrappage subsidies have certainly become more popular. Germany offers a Euro 2,500 payment for cars more than nine years old and France offers a Euro 1,000 payment. In the United States, a ''Cash for clunkers' bill is being introduced which offers up to £3600 for US consumers to buy new, more fuel-efficient vehicle assembled in the US and up to £5400 for 100mpg or more plug-in hybrids. Customers buying cars built outside of the country will only receive a maximum of £2900. And in Slovakia where there has been
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