Incentive for Old Cars to be Scrapped

Tuesday February 24, 2009
MAA backs cash incentive
By ROYCE CHEAH
PETALING JAYA: The Malaysian Automotive Association (MAA) supports the proposal for the RM5,000 payment as an incentive for old cars to be scrapped but hopes the Government will fund the programme.
“This proposal is not new. The industry suggested this before but the Government felt then that it did not have the necessary funds and asked the industry to come up with the RM5,000 on their own,” said MAA president Datuk Aishah Ahmad.
Aishah said the only company undertaking this programme was Proton. Proton’s programme is called Proton XChange and started in February last year.
Proton will take old cars of any make – as long as they are registered in Malaysia with a valid road tax, in working condition and fully paid for.
In return, the car owner will get a RM5,000 voucher to buy a new Proton Savvy, Gen-2, Satria Neo or Perdana. Aishah said if the scrapping policy was included in the mini-budget, then it ought to be extended to all makes to better stimulate the automotive industry.
She was commenting on the statement by International Trade and Industry Minister Tan Sri Muhyiddin Yassin that the proposal had been submitted as a package to be included in the mini-budget.
Kuala Lumpur and Selangor Car Dealers and Credit Companies Association president Khoo Kah Jin said the scrapping policy should also allow the RM5,000 incentive to be transferred from the owner to another person.
He added the other important consideration was how to make the scrapping process eco-friendly.



Article taken from The Star





What's wrong with these peoples mind? Do they think everyone was as rich as they were? Think about this...if I can only afford to buy 1 car, I would choose a relatively cheap and low maintainance type. So, I would opt for a 8 years old car and take a small amount of loan which I could settle it by 4 years time so that I can have extra cash for my kids when they grown up and go for school. By the time my debts finished, my car would be 12 years old.



If the plan works, then, I would be in debt 'again'. I have to 'trade in' my car for a RM 5,000 discount for a new car as my old junk need to be scrapped. I have to take a loan which I guess will amount to RM 20K at least.



In summary, we will be 'slave' for loans. Our entire life will be dedicated to work , and earn money just to pay for the car.