Tuesday, May 5, 2020

Another 'Cash-for-Clunkers' Deal?

Another cash-for-clunkers deal coming?  Well....maybe, if you follow ARD morning news this morning.

The German car industry needs people to get active buying cars, because if they don't....the whole job situation gets tangled up.

The SPD and CDU leadership?  Willing to discuss the matter.

What might come?  One of two paths. First, they could offer you a deal (say in the 8,000 Euro amount (my humble guess)), if you were to buy an E-car and swap your old diesel or gas car in.  Second, they could offer you an amount of several thousand (probably no more than 5,000 Euro) if you swapped the old diesel or gas car in) for just a plain regular gas car.

The problem here is that a fair number of Germans (I'd take a guess of 75-percent) have marginal interest in the E-car business, and most of the reason is the cost level (the better cars being more than 40,000 Euro).  Even with a 'gift' from the government of 8,000 to 10,000.....it might not be enough to flip the public over.

As for the gas car deal?  It'd probably have to be a car in the 10-year or older situation, and the new car would have to be German-made.  If you shoved 5k Euro into the hands of a quarter-million Germans.....they'd snap at the deal and visit the dealer within a matter of days.

As for the speed of this deal developing?  My humble guess is that they'd have the whole thing lined up and agreed upon by the end of May, with a final closure on the offer by the end of 2020.  I admit, it's an interesting offer, if it works out this way.  If it's just a deal for E-cars.....don't count on that much interest.

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