Scrapping Old for New Boosts German Auto Sales

Should the U.S. look to Germany for ideas about how to bolster new-car sales?

New-car registration in Germany is up 21% from February of last year, and the country had its best February for car sales in 10 years thanks to a direct-to-buyer incentive. Germany is offering a 2,500 euro discount to consumers willing to trade in a car that’s at least nine years old — and send it straight to the scrap yard.

The bonus — worth about $3,134 at current exchange rates — is part of the German government’s 50 billion euro economic stimulus program. It’s also expected to boost tax revenue through increased economic activity and lower tailpipe emissions as older, less-efficient cars are replaced.

Could a similar program work in the U.S., which uses only tax credits to move vehicles? Expect a resurrected debate in the coming years as more fuel-efficient vehicles roll out — especially if Germany’s program continues to prove successful.

German Auto Sales Leap With Payment for Scrapping Old Cars (USA Today)

Comments

How is this essentially different from:

http://blogs.cars.com/kickingtires/2009/01/congress-considers-gasguzzler-tradein-rebate.html

Dan, the essential difference is that while the congress considers, the Governments oversees already acts

I like it, but it wouldn't convince to me to get rid of my beloved '95 Escort. I don't like any new cars on the market at the moment and am content with my car