#16. Introduce a temporary vehicle trade-in rebate program
Heavily affected by production downtime and supply-chain disruptions, annual Canadian and U.S. auto industry sales continue to lag pre-pandemic levels by 15 per cent38 and 12 per cent39 respectively. Developing vehicle trade-in or “scrappage” programs can simultaneously boost demand for newer, more fuel-efficient vehicles, such as EVs, and reduce overall carbon emissions by pulling higher-polluting older vehicles off the road. Such a program can apply to vehicles aged 12 years or older, the average lifespan of a vehicle, and work in conjunction with dollar-for-dollar matching incentives provided by automakers.
38 See Automotive News Canada (January 5, 2022): https://canada.autonews.com/retail/2021-sales-nearly-7-remain-far-below-194m-sold-2019
39 See Automotive News (January 8, 2022): https://www.autonews.com/sales/2021-us-auto-sales-most-unusual-year