Monday, February 09, 2009 The Canadian “Retire Your Ride” Program, Good or Bad?
 The Canadian government announced recently a new light vehicle scrappage program offering a $300 grant on buying a bicycle to Canadians who will scrap their pre-1996 vehicle (there are over 5 million of those older cars and trucks in Canada). The program is scheduled to end on March 31, 2011.
According to auto analyst Dennis DesRosiers, this program is far from being as efficient as a German program that offers 2,500 Euros (more than $4,000 CDN) for a car older than 9 years (not 14!). In only one month, they have taken over 300,000 old units off the road. In Canada, granting $300 for… a bike? As DesRosiers points out, the car by itself is worth more in scrap metal! And trading a car for a bike? What do you do in winter? DesRosiers suggests to give a $2,000 check to Canadians who are willing to dispose of a vehicle over 14 years old (after calculating the cost of operation of the program, it would still be a more balanced budget) as he thinks that some 45,000 vehicles will come off the road, probably before summer. (ED)
|
