The Federal Government of Germany has decided to offer something never seen before in the country: €2,500 cash when you purchase a new car, as long as you also get rid of a car which is at least nine years old and has held a German registration plate for at least six months. The measure is designed to help Germans to get rid of old cars, since 3.8 million vehicles that are between 16 and 25 years old are still being driven. The Government expects that up to 300,000 people per year will benefit from this measure. Compare this to the plan being considered for the U.S.
We also have news about the upcoming CO 2-based road tax scheme in Germany. That news is, well, that lawmakers haven't reached an agreement yet. While some länder (states) still insist on a fixed tax for all cars, it looks like the new scheme will be a mix of a fixed amount plus €2 for each gram of CO 2 that a vehicle emits above a set limit. Those limits are: 120 g/km for cars purchased between July of this year and 2012. In that year, the limit drops to 110 g/km, and it goes down to 95 g/km in 2014. How would this play out? Well, if you purchase a BMW 116d, rated at 118 g/km, in August, you will only have to pay the base amount this year, but you will have to pay an extra €16 in 2012 and an added €46 in 2014. We'll see how this evolves, because I'm sure the German car industry will have something to say about the plan before it goes into effect.
[Source: Le Blog Auto]