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Cash for clunkers powers into top gear
Published: 09 April, 2010, 21:30
Edited: 13 April, 2010, 20:11
TAGS: Markets, Budget, Big deal, Economy
It’s a month since cash for clunkers programme was launched in Russia and strong demand has already taken 85% of the planned supply of new Lada cars.
According to the programme, any car, Russian or foreign, at least 10 years old, can be disposed of at participating dealerships across the country. The owner gets a $1600 rebate on any new domestically-produced automobile.
For Anna Ponomareva, who got her first LADA as a present from her grandfather to learn how to drive, Russian cars are cheap and reliable alternative to foreign brands. And this is a common approach among Russian customers.
"I'm not an experienced driver. So buying a foreign make is not an option – the cost of service and parts is too high. So a domestic model suits my needs much better."
Dealers across Russia say the results are overwhelming, with 72% of all buyers wanting to buy LADAs. The cheapest models were sold out in just three weeks and Olga Rogacheva, senior marketing manager at Lada Kuban, also says the demand is strong.
"I can say that this program is very popular with our customers. In just one month we've received more than 4000 requests, so we issued 450 certificates and sold 170 new cars."
Currently there are more than 14 million cars in Russia that qualify. The quota for this experiment is just 200 000 vehicles, so dealers expect it run out two months ahead of the November 1st deadline. But for those who miss out this time, the government may turn "cash for clunkers" into a permanent program.
09.04.2010, 21:24
3 comments
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Again, RT is playing how wonderful this idea is and how it improves our lives. It is complete nonsense. How do I know? Well, my wife's father wants to take part in this program. He goes to all the dealers looking for an Avtovaz car he can afford with the trade in. They are all back order by months! If you trade in your car, you will have credit for a new car. The catch, the credit is valid for 2 weeks. So he can't even get a new car with this program. It also rids poorer families of the ability to buy a used car for under 1000$. This is a disastrous copy and paste program straight out of the USA.
I do not know about you mr. Arytom, but I know many people who are very satisfied with this government help program. So please stop judging the world around you and others, according to your own ideas and perceptions !