Want to end 2018 with a newer car than January 1st? The proposal for a scrapping bonus for second-hand vehicles could fulfill your wish, provided you convince the Minister of Economy and Finance.
Scratch premium: an ambitious idea
Renewing the new home market while improving the fleet of used vehicles: this is the challenge facing the National Council of Automotive Professions (CNPA), which brings together professionals in the sector. To achieve this, the organization has just handed Emmanuel Macron, Minister of the Economy, Industry and Digital, a white paper containing proposals to help the used car market.
Among the tracks mentioned is the idea of a scrapping bonus for second-hand vehicles. According to Ariel Cabanes, director of foresight and public affairs at the CNPA, this reform is one of the pillars of the white paper, because of the worrying situation of the French car fleet. At present, France has 10 million vehicles over 10 years, 60% of which run on diesel and escape the new anti-pollution standards.
A bonus of up to 1000 euros
The main objective would of course be to help motorists to buy a newer vehicle, in a sluggish economic context that is affecting purchasing power. In fact, the premium would take the form of state aid of between 500 and 1000 euros. However, such an incentive would not penalize the finances of the state by raising the VAT.
According to data collected by the CNPA, in 2017, approximately 60% of used vehicle sales were made between individuals. By relaunching new car purchases with automotive professionals, the scrap premium for used cars would thus reintroduce fresh money into the real economy. In addition, to strengthen its proposal, the National Council of the professions of the car proposes to vouch for a system of loans at very low rates, for the most modest households.
The used car market in France
More than just an economic measure, the scrap premium for used cars is also ecological: by replacing your used car with a new vehicle, you contribute to the reduction of pollution on the French roads. The bet is not won, considering the attractiveness of used cars for French drivers, who are ready to pay an average of 14,360 euros for a vehicle with 15,868 kilometers traveled per year. According to the French CCFA Manufacturers Committee, small entry-level cars such as Volkswagen Polo, Peugeot 208 and Renault Twingo accounted for more than half of total sales in 2017.
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