Faced with such a large space, a fleet renewal program aimed at replacing older and polluting cars is not as important in the national political sphere. Without this incentive to replace the used car with the new, it is unlikely that consumers will be looking for a way to dispose of their already used and polluting cars with newer, cleaner models. As you sell junk cars then there are options that you can go for now.
The whole process of fleet renewal consists of discarding and recycling the car received in exchange, even if it is in a position to rotate. Route 2030 foresees this among the proposals, but as the automotive regime is still threatened and perhaps only to come out in 2019, we will have to wait until then. Such a large national program will obviously need a huge tax incentive, which would of course come out of a tax exemption.
For the current government, this is unthinkable. Without it, how to get someone to give their car in exchange for a new one, take on new debt and still get a good discount on it. The shopkeeper will not get the same value as the used car is a process of discarding and selling the parts in the current molds, however good. Although the age of the fleet is just over 9 years against 11 in the US and 8 in Europe, the number of cars in poor condition by roads and high is high.
The problem is a lack of maintenance due to the high cost of repair. In addition, some states encourage ownership of older cars, such as in the state, where a car older than 20 years pays no IPVA, while newer ones pay 4%. Incidentally, the tax does not decrease gradually, it simply ceases at 20 years of the car, no matter its value, can be even a 1997 Ferrari.
In some countries, such as Japan, the tax only increases over time, inhibiting ownership, which is then sent for disposal and subsequent recycling. In Brazil, as the tax burden is large, those who buy new cars carry a huge weight, but those who run with older vehicles are almost exempt from taxes.
Vehicle disposal in other countries is more organized, becoming a true industry, as in the US and Japan, for example, where recycling centers are true parts and materials processing plants. In the US, the devaluation of cars is so accentuated by the high market turnover, consolidated for decades, that the only destination is the discard for lack of value, thus giving an opportunity for business of sale of parts already out of production, which makes it profitable for those who own vintage cars or collectors.
In Europe, some countries in the economic bloc have individually carried out bonus fleet renewal programs in exchange for older used and especially diesel-powered cars for hybrid, electric, CNG or economy cars. Old vehicles are compulsorily discarded and recycled, even preventing their export or use for any other purpose.
According to the National Traffic Department (Denatran), in 2016, the Brazilian fleet consisted of 51.2 million cars. In 2017 alone, 2.7 million cars were produced in Brazil, according to the National Association of Automotive Vehicle Manufacturers (Anfavea).