Fri, 26 Jun, 2015 12:04:46 AM Old car scrapping scheme to see sale of 3000 to 5000 new cars FTimes – STT Report, June 26  Scrapped cars at the scrapping center in Vantaa on Thursday, June 25, 2015. Photo – Lehtikuva. Automobile industry businessmen expect car sales to gain momentum as a scrapping scheme trial begins next week.
Owners of old cars will get Euro 1,500 discount upon the purchase of a new car after sending an old end-of-life vehicle to the scrap.
Automobile traders believe the scrapping scheme would result in the purchase of about 3,000 to 5,000 new cars.
Last time the automobile industry achieved its car sales target was at the beginning of 2,000s, said Antti Ruhanen from the Automobile Importers’ Association in Finland.
According to Ruhanen, car sales have been particularly bad for the last 7 years to 8 years.
The car tax relief entered in the government programme is short of what the car industry expected.
The car tax relief will be implemented starting next year until end of the parliamentary term in 2019.
According to Ruhanen, the car tax relief policy direction is right but its timing is lame.
"We in the industry hoped that the tax relief would have been greater at once and faster," Ruhanen said.
Currently, three million euros has been earmarked for the scrapping scheme. However, if the surge in trade becomes lively, the funding is expected to come short.
"There are two options in this case, either additional funding should be allocated or the campaigns comes to a halt," said Juha Kenraali from the Finnish Transport Safety Agency, Trafi.
Scrapping premium service desk shows 1500 Euro discount in purchase of new car after scrapping old car in Vantaa service point on Thursday, June 25, 2015. Photo – Lehtikuva. According to Kenraali, the campaign's budget has not been finalised. The campaign's popularity will be monitored in conjunction with the automobile industry, added Kenraali.
The state will received an average car tax income of 7,500 euros for each car sold.
About 60,000 cars are scrapped through the formal recycling system annually. The average age of scrapped car is 20 years.
One of the goal of the scrapping scheme is to rejuvenate the car fleet in the country.
"One in every six casualties of road accidents this year were riding in cars which had reached the age of scrapping," revealed Tapio Koisaari from the Finnish Motor Insurers' Centre -LVK.
According to The Finnish Information Centre of Automobile Sector-AuT, the modern car is up to 50 percent safer and consumes one-third less fuel than cars in the 1990s.
The objectives of the car scrapping scheme is to reduce emissions and improved road safety.
More News
|
|
Finland Times
| Saturday, 27 April, 2024 |
|
Copyright © 2024 All rights reserved
|
||||
