Regional Victorian drivers might quickly be getting round in additional trendy automobiles, because of an announcement by the Andrews Authorities to eliminate older autos.
The Victorian Authorities will quickly start trialling a ‘money for clunkers’ program in an effort to get outdated and unsafe automobiles off the roads.
Premier Daniel Andrews introduced the transfer on Fb Sunday night time, with the pilot program set to start in regional areas of Victoria.
Whereas full particulars haven’t been launched, it is understood grants can be awarded to younger Victorians to assist substitute a complete of 1 thousand older autos presently registered throughout the state.
The announcement stated the Authorities will present “grants to assist younger individuals in regional areas scrap their outdated automobile and purchase one thing newer and safer”.
Precisely how a lot the grants can be has not but been introduced – however the incentives will have to be enticing, with used-car gross sales seeing file demand on the finish of 2020, driving common costs to all-time highs.
A second program may even be trialled, the assertion learn, giving lower-income Victorians aged over 65 who stay within the nation entry to extra trendy autos by way of “short-term, reasonably priced leases on newer and safer automobiles to assist them get round safely”.
Essentially the most well-known ‘money for clunkers’ scheme was launched by the US Authorities in 2009 as a method to assist increase its weak economic system, following the inventory market collapse the yr prior.
The US Authorities dedicated US$3 billion (AU$3.7B traditionally) to this system, which lasted solely 29 days. Rebates of as a lot as US$4500 (AU$5500 traditionally) had been supplied to those that traded of their outdated automobiles for brand new fashions.
Above: Victorian Premier Daniel Andrews.
Former Prime Minister Julia Gillard introduced the same scheme in 2010, often called the ‘Cleaner Automotive Rebate’, which might have supplied an incentive of $2000 to swap outdated automobiles for brand new – however the proposal was ultimately scrapped, with the cash stated to have been allotted to flood victims.
In Might 2020, the Australian Automotive Sellers Affiliation (AADA) referred to as on the Federal Authorities to take a look at introducing a brand new program to assist stimulate the auto business, which skilled a 48.5 per cent gross sales decline the earlier month.
Regardless of the sharp pullback earlier within the yr, new-car gross sales noticed a powerful restoration by December 2020, seeing an annual year-on-year shortfall of solely 13.7 per cent.
A ‘money for clunkers’ scheme would have advantages past economics, with a youthful fleet of automobiles on the highway enhancing emissions, in addition to saving lives.
“This would supply a stimulus for the automotive business and help in making Australia’s passenger automobile fleet safer, whereas additionally decreasing emissions,” James Voortman, CEO of the AADA, stated of the proposal again in Might.
By reducing the common age of Australia’s automobile fleet by only a single yr, it could “save as much as 1377 lives and create a $19.7 billion profit in trauma and emission reductions over a 20-year interval”, in line with a research by the Australian Automotive Affiliation.
This story can be up to date as extra particulars of the Victorian Authorities’s ‘money for clunkers’ scheme emerges. Remember to comply with CarAdvice on Fb and Instagram to get the very newest information.
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Money for clunkers: Victorian Authorities proclaims pilot program