Canada’s automotive industry has been hit hard by COVID-19. The road to recovery will be a long one, as many Canadians may be hesitant to spend their limited funds on luxury purchases like a new vehicle. While there’s a role for the federal government to play in supporting the automotive industry post-COVID, taxpayer-funded incentives to purchase a new car—otherwise known as a vehicle “scrappage” program—is not the solution, as it leaves both small businesses and middle-class Canadians out of these recovery efforts.