US policymakers are rolling out big incentives for electric vehicle buyers who surrender a gas-powered model, advancing efforts to cancel carbon emissions.
The main thing these cash for clunkers schemes do is drive up the 2nd hand market by creating artificial scarcity.
Manufacturers love this shit because coming off the back of supply issues, they can go back to pushing up demand for new vehicles all over again.
It’s also a scheme that helps people that are already able to afford a new car - people shopping the 2nd hand market aren’t going to be helped, so it’s really not effective as a societal benefit - it just helps people who likely were already shopping for a new car get a slightly more expensive one.
The main thing these cash for clunkers schemes do is drive up the 2nd hand market by creating artificial scarcity.
Manufacturers love this shit because coming off the back of supply issues, they can go back to pushing up demand for new vehicles all over again.
It’s also a scheme that helps people that are already able to afford a new car - people shopping the 2nd hand market aren’t going to be helped, so it’s really not effective as a societal benefit - it just helps people who likely were already shopping for a new car get a slightly more expensive one.