German car scrappage scheme abused.

[Kowalski]

I hope this thread doesn't into a political discussion.

German car scrap scheme 'abused'

By Tristana Moore
BBC News, Berlin

Up to 50,000 cars meant to be scrapped under a German scrappage scheme have been illegally sold abroad instead, the country's police union says.

Drivers get $3,600 when scrapping an old car and buying new​

Lax controls, criminal gangs and a poor scrap metal market have been blamed for the cars being transported for sale in Africa and eastern Europe.

The government has launched an inquiry into the alleged abuse.

Under the scheme, drivers receive 2,500 euros ($3,600; £2,150) if they scrap their old car and buy a new one.

Flood of applicants

Germany's criminal police union, the BDK, says the abuse affects up to 10% of cars that should have been scrapped.

Police say they recently found a container in the port of Hamburg which was crammed with more than 40 old cars bound for Africa.

According to police, the owners had already received the government subsidy under the scrappage scheme, but instead of being destroyed the cars ended up in the hands of criminal gangs who sold them on.

This is not an isolated case and police say a number of factors are to blame.
Thanks to the global downturn the scrap metal market has crashed, so many scrapyard dealers are sitting on a mountain of old cars they need to get rid of.

There are lax controls and criminal gangs are becoming more savvy.
Environmental campaigners say they are not surprised by the new report as they claim there is widespread abuse of the government scheme.
Since Germany launched the scheme in February, there has been a flood of inquiries.

So far, more than 1.7 million applications have been received by the authorities.

The scheme, which has counterparts in other countries including the US and the UK, was introduced to kick-start the struggling car industry.
Finance Minister Peer Steinbrueck says the government will launch an inquiry into the possible abuses.

Source: BBC NEWS | Europe | German car scrap scheme 'abused'

I say good for the Germans who sold these cars to Africa. Wasting a perfectly useful car to supposedly "help" the environment, it's just sickening IMO.

 

[coolraoul]

Especially knowing that producing a car is so polluting that you need to drive it several decades to get your polluting balance green versus someone keeping his old, bit more polluting car...

Meaning that these supposedly environmentalist measures have a largely negative effect on the planet... But are good for the business.

And I agree: destroying a perfectly functionning 8 year old car is absolutely revulsing.

 

[Kowalski]

^
The rules of the scrappage scheme says the car has to be at least nine years old, but really, why would you scrap one of these still in good working order...

To get a £2,150 rebate in the price of one of these...

Just revolting.

 

[Gullwing]

Waste of money. U.S. started with $1 billion for their version and after four days demanded $2 billion more. Most of the cars bought were going to be bought no matter what. Many used the $4500 to buy luxury cars like Lexus... wow I am sure they needed that extra $4500. Now the "little people" who need the "clunkers" because they can't afford anything else now have to pay more because of less supply


Good news though the cars taken off the road and replaced with "greener" ones will save as much fuel as the U.S. uses in 4.5 hours

I think the $3 billion would be better used on bridges that are falling apart (we have plenty all over the U.S.), produces some jobs and may save lives.

 

[VroomVroom]

We are scrapping out car which is honestly worth about £100 to buy a new car, it is a brilliant idea but the car we are scrapping is a perfectly good running car and would make someone a brilliant little car, but we would never get £2,000 for it!

All of the cars which go for scrapping need to have an MOT, luckily we registered our car in before the MOT ran out because theres 300quids worth of repairs need doing (wheel bearings and exhaust)

 

[Gullwing]

For the most part maybe, but there are still plenty that are worth more, maybe even more then $4500 that stil are in great condition that they are still crushing and sending to china so that china can make money off them.

 

[NarutoRamen]

Many used the $4500 to buy luxury cars like Lexus... wow I am sure they needed that extra $4500.

By the way, where are you getting this? Because the highest selling cash for clunkers car was the Focus until it was replaced by the Corolla.

 

[Gullwing]

They were talking about it on the news. Sure more people bought Focus, but some did buy luxury cars, even not so high mileage SUVs.

 

[NarutoRamen]

They were talking about it on the news. Sure more people bought Focus, but some did buy luxury cars, even not so high mileage SUVs.

I haven't heard a thing about this, not even on any car blogs I go to. BTW...the scheme isn't just so people buy crappy cars like Cobalt, Focus and Corolla. If the car meets the requirement (MPG, CO2, etc.) then they can buy whatever they want. If I have the money to trade in a POS that I drive for a brand new AUDI, BMW or Lexus then why would I go for a Corolla?

It's not abusing the system because the car they got is still fuel efficient and better than the one they are replacing, which is the point behind the whole damn scheme in the first place. It would be abuse if someone traded in a car that got 17mpg for a car that gets 12mpg and still got $4500.