The idea behind auto vehicle scrappage is to minimize the impact of outdated, older vehicles and the resulting pollution they contribute to the environment. To boot, the carbon emissions can be detrimental to air quality. Our team at Fida Insurance Group in Monroe, CT, explains the now-defunct program’s policy and the vast benefits it brought to the scene. Fortunately, plenty of alternative auto scrapping options, minus governmental incentives.
The Former US Vehicle Scrappage Policy
Many nations have implemented this type of policy, and in the United States, it was often referred to as the "cash for clunkers" program. As a part of the Automotive Stimulus package, participants would receive a voucher for the scrap value of the vehicle after getting a newer one with certain fuel-efficiency ratings.
Benefits of the Cash for Junkers Program
While its primary purposes were to reduce older and inefficient vehicles’ burden on the environment and to boost the economy, some other benefits included:
- The program boosted the auto sector via increased sales and profits.
- Vehicle owners saw benefits in waivers and concessions when opting into the scrappage program.
- This program created more jobs within the automobile sector.
Is a New Scrap Incentive Program In the Works?
Currently, an EV incentive offers a maximum federal $7500 tax credit, and some states boost that with an additional $2500. Under a newly passed IRA, credits would be extended by up to $4000. Many suggest marrying in EV buying incentives to include a requirement for the vehicle to be scrapped and recycled.
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Fida offers insurance policies throughout the state of Connecticut and is considered one of the best companies to work with. Come by our Monroe, CT, physical location, call us, or send us an online request to discuss your needs with an agent.