German Car Scrap Scheme - a Waste
The scheme (similar to many other in the world) is offering 2,500 euros to anyone putting a car nine years or older in the crusher and buying a new one.
According to the German newspaper Welt am Sonntag, Germany set aside 5 billion euros to fund the anti-recession program.
It didn't take IWH representatives too long to come up with the conclusion that this measure was not a profitable one, the study showing that most claimants would have bought a new car anyway, as reported by AP via drive.com.au.
Only 500,000 buyers traded an old car for a new model as a result of the incentive, while 1,5 million would have renewed their ride anyway.
"This was the way it was intended to be," a spokesman said Sunday. "The idea is that somebody who needs a new car should buy it now and not wait till next year. We wanted to encourage profit-taking as a way of promoting immediate consumption."