If there was ever any doubt that a “cash for clunkers” program is an effective economic stimulus, the results of the recent CARS (Car Allowance Rebate System) initiative in the
Federal environment minister Jim Prentice has announced that the Canadian government will not be introducing an expanded vehicle scrappage program, as the Canadian Automobile Dealers Association (CADA) and the Canadian Vehicle Manufacturers Association (CVMA) jointly advocated back in June. The government subsequently acknowledged that it was considering implementation of just such a program.
Some manufacturers, who grew tired of waiting for a decision, went ahead with ‘clunkers’ programs of their own. And some pundits have speculated that doing so provided the feds with the excuse they were looking for to say no to a universal package.
Whatever the real rationale, at least a decision has now been made, releasing everyone involved from the limbo status of the last three months. “We were getting calls from the public asking us what was happening with the proposal,” says CADA’s Michael Hatch. “Almost certainly, some buyers who are in the market were holding back in the hope that a program would be forthcoming.”
CADA has expressed disappointment with the government's decision. But the upside is that now those would-be buyers have no reason to wait any longer. Even without a scrappage incentive, CADA notes, vehicle prices are at historic lows and cars are more affordable than they have been in a generation. Plus, consumers still have access to the $300 Retire your Ride program and several provincial programs that complement it. In addition, several manufacturers have introduced scrappage offers in excess of $1000 per vehicle and CADA is encouraging others to do the same.
Collectively, we need to get the message across to the public – whether you’re scrapping an old one or not, it’s a great time to buy a new car, truck or SUV!
Add this page to your favorite Social Bookmarking websites
| < Prev | Next > |
|---|
Comments