Scrappage scheme: associations demand more security for car buyers

Car buyers who want to take advantage of the scrappage scheme for old cars should not be disadvantaged if they choose a model with a long delivery time. Who buys a new car until the middle of the year, must get the 2500 euros guaranteed, demands the central association of german motor trades (ZDK). This would create more security for the buyers and would "hectic from the market" ZDK press spokesman helmut blumer said the leipziger volkszeitung (LVZ). The federation leads in this connection discussions with the federal office BAFA responsible for the application processing as well as the federal ministry of economics.

The ZDK, which represents the interests of nearly 40.The ZDK, which represents the interests of almost 40,000 vehicle dealers and repair shops in germany, is calling for the date of the purchase contract to be used as the cut-off date for receiving the premium, rather than the date of delivery of the new vehicle, as is currently the case. As the funds for the scrappage scheme are limited to a maximum of 600.000 payments are capped and BAFA only processes applications in the order in which they are received that include a certificate of registration for the new car, buyers of cars with longer delivery times are at a disadvantage. The ADAC also points this out, but instead of changing the cut-off date regulation, it calls for the cost cap for the "environmental pram".

According to a survey by the ZDK, around one million people want the scrappage bonus "in any case" use the scrappage scheme, according to the LVZ further. Although there is a question mark over the validity of a survey that was conducted less than four weeks after the announcement of the scrappage scheme, it is impossible to predict how many applications BAFA will receive in the coming months. According to the BAFA’s regularly updated list of receivables, to date 34.210 applications have been received by the authority to date.

However, according to BAFA, it will still take until march before the first premiums are paid out. Only then will it be possible to estimate roughly how high, for example, the proportion of rejected or incomplete applications will be. It is also conceivable that many buyers will postpone their purchase decision until the end of the year, when the scrappage scheme expires: be it because they are worried about losing their jobs in the course of the year or because they are speculating on further rounds in the discount battle, which numerous manufacturers have already started with extra discounts on the scrappage scheme – including heavyweights in the market such as VW.

Impact on the used car market

On the effects of the abwrackpramie on the market for cheap used cars points an article out of the in potsdam appearing markische allgemeine (MAZ) points out: "the whole low-cost segment will collapse" the newspaper quotes a used car dealer. The "very cheap used cars" will probably disappear from the market, according to the report, the president of the berlin-brandenburg state association of the automotive trade also expects.

The scrappage scheme puts low-income earners and the unemployed at a disadvantage, quotes the MAZ a spokesman for the unemployed forum germany. Those with little money can no longer find an affordable used car due to a lack of supply. In addition, there is a danger that people who could not afford to buy a new or annual car will be tempted by the premium.