The scheme whereby buyers can get a 2,000€ discount off a new car when they trade in an old one has proved to be a great success. The car industry here in Spain say that 99% of the recent sales have been made using this scheme.
The deal is that the manufacturer pays 1,000 Euros, the State 500 and the regional government the remaining 500. For those who haven’t taken advantage of the offer yet, the scheme has been extended into 2010 with a budget of 40 million Euros to finance 80,000 more sales.
Spain began offering €2,000 subsidies to new car buyers on May 18th. Before the scheme was launched, Spanish car sales had been in free fall, with a 45.6% year-on-year drop in April. Although there has been a month on month drop in sales throughout the year compared with 2008, the figures are nowhere near as disastrous as they could have been.