Car scrappage scheme financial benefits?

May 11 2010 The economic recession has compelled governments of different countries to react in different ways. While some have increased the supply of money to fuel the economy, others have resorted to providing sops to crucial growth engines of the economy like the automobile sector so as to kick start the economy.
So the decision to do away with some real good cars under the scrappage scheme was brought into play and it is estimated that close to 400,000 vehicles have already been scrapped. Many of these vehicles have not clocked much mileage and are in perfectly good condition and that is something that is disturbing. The scheme also does not make for any distinction between brands with the best of the Volvos and BMWs falling prey to such a scheme.
The government in its infinite wisdom brought in this kind of a scheme to motivate people to go ahead and buy new cars and while that is a good strategy, the fact that people are anyways losing out on the depreciation is something that is not very palatable. If the argument is that such a scheme is good from the environment perspective, then it is essential that the potential benefits are made known to the public in a transparent manner.

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