Planned Obsolescence
Planned Obsolescence
Planned Obsolescence
Walter Cardoso Satyro, José Benedito Sacomano, José Celso Contador, Renato
Telles
PII: S0959-6526(18)31569-5
DOI: 10.1016/j.jclepro.2018.05.222
Please cite this article as: Walter Cardoso Satyro, José Benedito Sacomano, José Celso Contador,
Renato Telles, Planned obsolescence or planned resource depletion? A sustainable approach,
Journal of Cleaner Production (2018), doi: 10.1016/j.jclepro.2018.05.222
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ABSTRACT
Although much research has been done on ways to provide better conditions of
environment and cleaner production, little attention has been paid to the impact of the
short lifetime of the current products in sustainability and also to the necessity of
providing natural resources to supply goods to a human population with a growth rate
never seen before. Using literature review, secondary data and field research to illustrate
this work with examples, the objective of this paper is to study the necessity of
changing the paradigm of planned obsolescence to the one of long-lasting products and
to present some suggestions found in the literature review on how to keep them updated
under so many changes and innovation to which the products are subject in the present
days. The practical implications of this research are to propose two mechanisms of
planned obsolescence to complement the theory: Design for fast consumption,
showing how industry designs products to artificially increase consumption of olive oil,
perfumes, sunscreens, moisturizing creams, shampoos and other related products, and
alert how a simple design change in toothpaste tubes with a mouth of internal diameter
of 8 mm decreased to 5 mm can reduce consumption by 61% if frequency of brushing
and length of toothpaste can be maintained; and Design for restricted technological
update, approaching how industry uses this mechanism to force people to exchange
their cellular phones and electronics in general every year; and also to propose solutions
for a better benefit for consumers and the environment, and to arouse interest that global
developing based on a consumption society is no longer sustainable, so a new and less
consumerist society must replace the current one.
1. Introduction
Design is an issue that has received much attention in recent years because of its
importance to sustainability (De Medeiros et al., 2018; Rehman and Ryan, 2018;
Sonego et al., 2018). Due to the growth of the worldwide awareness of the
environmental problems we face today, manufacturers are more concerned about the
environmental performance of their products and services (Brundage et al., 2018; Tao et
al., 2017; Zhang et al., 2018).
Possibly inspired by the fashion industries that launch new models every season, in
order to increase sales, some industrial sectors promote changes in their products,
sometimes minuscule, to differentiate a products launched in one year from the other
year. At the same time these industries design, produce and sell their products so that
they can become non-functional or obsolete in a short period of time, reducing the
product lifetime, preventing from technological updates and so forcing consumers to
buy new ones very frequently (Bakhiyi et al, 2018; Lawlor, 2014; Kozlowski et al.,
2018; Maitre-Ekern and Dalhammar, 2016). This practice is referred as “planned
obsolescence” (Bridgens et al., 2018; Fishman et al., 1993; Niinimäki and Hassi, 2011).
The subject has had such relevance that on June 9th, 2017, the European Parliament
adopted a motion to extend the lifetime of products and called on the Member States
and the European Commission to take the necessary measures to counter planned
obsolescence (European Parliament, 2017).
There are authors who advocate planned obsolescence perceiving it as a tool to recover
market share, achieve technological progress, driving innovation, seeing long-lasting
products as inductors of slow innovation that can lead to economic stagnation (Blonigen
et al., 2017; Fishman et al., 1993). Other authors emphasize the negative economic side-
effects of planned obsolescence, such as pollution, increase of waste and depletion of
scarce natural resources (Echegaray, 2016; Guiltinan, 2009; Cooper, 2008).
Whilst much research has been done on ways to provide better conditions of
environment and cleaner production, little attention has attracted the interest of the
academic community to the impact of the short lifetime of the current products on
sustainability, and the consequences that this can cause on the necessity of supplying
goods to a human population with a huge growth rate, a gap that this research seeks to
study.
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The objective of this paper is to study the necessity of changing the paradigm of
planned obsolescence to one of long-lasting products, present some suggestions found
in the literature review on how to keep them updated under so many changes and
innovation to which the products are subject in the present days, and to present some
examples of products designed with mechanisms of planned obsolescence found in the
field research and proposed solutions to keep them functional.
This research is structured in sections. Section 2 presents the method and shows the
academic research on this subject. Section 3 provides the literature review on design,
sustainable consumption and planned obsolescence. Section 4 presents the discussion
about the world population growth, scarcity of raw materials, planned obsolescence,
consumer profile in some countries, proposes two mechanisms of planned obsolescence
to complement the theory and gives some suggestions found in the literature review to
extend the life of some products. Section 5 provides the conclusions, points out the
limitations of the present research and gives some suggestions for future research.
2. Method
Based on Scopus database, the research for this paper was made in the first quarter of
2017, using as search engine the terms “planned obsolescence” AND sustainability, the
first terms in quotes to reach results that have both words together and using the logical
operator AND to provide both terms. These terms were used in the search field: paper
title, abstract, keywords, in the period from 1970 to 2017 and in all document types.
Table 1
Quantity of documents found in Scopus database. Search engine: “planned obsolescence” AND
sustainability.
Year No. of Documents References Document Type
2017 1 Cooper (2017) Book Chapter
Echegaray (2016) Paper
2016 2 Wieser (2016) Paper
Engel (2015) Book Chapter
2015 2 Tokić, Tokić (2015) Conference Paper
Lawlor (2014) Paper
Çetiner and Gündoğan (2014) Conference Paper
2014 5 Lobos (2014) Conference Paper
Madden (2014) Paper
Rodrigues et al. (2014) Conference Paper
Nyman et al. (2012) Conference Paper
2012 2 Borenstein (2012) Paper
2011 1 Miller (2011) Paper
2009 1 Guiltinan (2009) Paper
2007 1 Forge (2007) Paper
1978 1 Hayes (1978) Paper
Total 16
The research presented nine papers, five conference papers and two book chapters,
resulting in sixteen documents in total, in a period of almost thirty-nine years, shown in
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Table 1, giving an idea of the scarcity of studies on this subject. However, the literature
review did not limit to these sixteen documents, and we used other papers to
complement the information presented in these selected papers, identified through
Scopus database.
The research at Scopus database made at the end of February 2018, using as search
engine the term “planned obsolescence” in the search field - paper title, abstract,
keywords, in the period from 1971 to 2018 (almost 47 years) -, resulted in 127
documents (95 papers, 12 conference Proceedings, 11 books, 6 book series and 3 trade
publications), pointing out a shortage of studies on planned obsolescence, even when
the subject is addressed in a general way.
We also used secondary data available in the World Population Policies Database of the
United Nations Department of Economic and Social Affairs Population Division
(DESA, 2017) of the United Nations Secretariat and in the Greendex 2014 (National
Geographic and Globescan, 2014).
In order to illustrate the literature review with examples of products designed for fast
obsolescence, we made a field research, visiting: one car dealership, six technical
assistance and five general and electronics stores, in a total of twelve professionals
interviewed.
The interview with the technical assistance technician of the car dealer took about one
hour – 30 minutes in the morning and 30 minutes in the afternoon -, and the others took
around 30 minutes each, made in Portuguese with the professionals of those companies
in their workplaces. All interviewees had more than two years of experience. The
questionnaire had one main question: What products / parts had problems and needed to
be fixed in a short period of time after its sales and / or were difficult / expensive to fix?
The interviewees did not agree to be recorded, so the answers were written by hand, and
the useful ones for this research were presented in Table 3.
For the convenience of the researchers all these companies were located in Sao Paulo,
state of Sao Paulo, Brazil. Two of these companies were located in the neighborhood
and the others at downtown Sao Paulo. The authors of this paper also provided
examples of such products.
From this methodology we could identify two mechanisms of planned obsolescence that
we suggest in this paper to complement theory.
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3. Literature review
Competition is high at the present days and at the same time that companies are looking
to launch innovative products to increase market share or to stay in the market, now
companies need to worry not only about production costs, total quality, decline of time
for development and launch of new products, but also about an ever increasing number
of product requirements (Floriane et al., 2017).
In order to achieve these many requirements, the concept of Design for X (DFX) arose
in the eighties, a design approach, gathering different cultures and/or specialists in
teamwork, where skills and knowledge are shared in a collaborative and integrated
approach, propitiating the enhancement of the design process and/or product, from a
peculiar perspective which is represented by “X” (Tichem, 1997, Tomiyama et al.,
2009).
Specific properties, such as: environmental effects, cost, risk, quality, flexibility,
lead time, efficiency, etc.
Phase of a product life cycle, such as: production, assembly, marketing, service,
discarding, disassembling / recycling.
Process and/or sub processes of manufacturing, such as: stamping, machining,
etc.
It is also possible to take into account all these understanding of “X” as a whole, when
life cycle, manufacturing process and specific properties are considered.
Ecodesign or Design for the Environment, also known as: Green Design, Sustainable
Design, Environmental Conscious Design, Life Cycle Engineering, Clean Design and
Life Cycle Design, is a design approach that takes environmental issues into account in
product development and related processes (Almeida et al., 2010, van Weenen, 1995).
The goal of Ecodesign is to reduce environmental impact to a minimum, reducing the
consumption of natural resources and energy, as well as prevention of waste and
emissions through the product life cycle, but at the same time keeping essential
characteristics of the product, such as cost, quality, performance, etc. (Pigosso et al.,
2013, Van Weenen, 1995).
Better material management – applies to the tasks that make easy to recover,
recycle and reuse materials and product components, the “design for recycling”.
“Design for efficient longevity” or “design for longevity” aims to design products
which can last longer, the product life service can be easily extended, using the product
more intensively and at the same time keeping it efficient along the years (Van Nes and
Cramer, 2008, 2005; Van Weenen, 1995). The objective of the product lifetime
extension is to preserve natural resources, reduce solid waste management costs and
protect the environment (Van Weenen, 1995).
The Organization for Economic Co-operation and Development (OECD, 2008) states
that sustainable consumption considers the social and ethical dimension of the product,
the way products are produced, the effects of the production processes, including
resources and workers, and their ecological impacts, seeing consumers as the key
driving to sustainable production, leading to a sustainable development. Sustainable
consumption and production play a key role in sustainable development, which aims to
achieve long-term economic growth coherent with social and environmental needs
(OECD, 2008).
Linear economy is considered when the end of the life cycle of a product is achieved,
and in consequence, it is disposed and considered a waste (Mathews and Tan, 2011;
Russell et al., 2005), that is, extract, produce, consume and trash, without any concern
to the pollution created at each phase (Sauvéa et al., 2016).
One of the oldest formal use of the term “planned obsolescence” was reported in a
brochure of nineteen pages entitled “Ending the Depression through Planned
Obsolescence”, written in 1932 by Bernard London, from the University of Wisconsin -
Madison (London,1932), when the economic depression in the USA declined the
buying power of the consumers. The American economy was in a recession and the
Americans were using their products as long as possible, not buying new ones as they
did before the depression and in consequence of the low consumption, industrial
production was in decline. To overcome the recession, London (1932) suggested the
planned obsolescence.
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i. Design for limited repair. Critical components that are subject to deterioration
in service are so expensive to be replaced that it is cheaper to buy a new product.
For example, breaking of bearings in some washing machines, which is one of
the most common problems, is so expensive and complex to repair that it is
worth buying a new washing machine (Poulter, 2015).
ii. Design for limited functional life (“death dating”) or Contrived durability.
The product is designed to degenerate quickly, so each component of the
product is made to last a short period of time, such as 3 years. One method of
limiting durability is the use of substandard materials in key components, such
as plastic material that deteriorates easily, screws undersized that break down
after a limited time, and others that weaken the use of a product (Giles, 2006;
Orbach, 2004).
iii. Design aesthetics that lead to reduced satisfaction. Aesthetic characteristics
that deteriorate over time, such as parts that oxidize with use. For example, a
quartz wrist watch, whose body and back were made of stainless steel, but the
crown, used to adjust the hands and the clock calendar, was made of a material
that oxidized before one year of use. This can reduce the satisfaction of using
such wrist watch, and at the first time consumer needs to change the watch
battery, consumer will probably consider replacing the watch.
i. Design for fashion or style obsolescence. The concept of fashion is used in the
design of products, so that consumers are convinced to replace their buying for a
new one that has some design change. An example is the automotive industry
that promotes superficial changes, such as new headlights and friezes in a
vehicle to differentiate it from the ones produced in the previous year, but
keeping the vehicle with the same basic technical specification (Müeller et al.,
2007).
ii. Design for functional enhancement through adding or upgrading product
features. New products are launched incorporating other technological
enhancement or functionalities, such as cellular phones incorporating GPS,
digital TV, and other functionalities, or personal computer with more powerful
memory, processors, etc., making it attractive to replace the old ones that did not
have these new characteristics.
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The world population data is presented in Fig. 1 that illustrates the total number of
inhabitants from 1900 to 1950 based on the estimates of the Netherlands Environmental
Assessment Agency, History Database of the Global Environment (HYDE, 2010), from
1950 to 2015 (DESA, 2017), and the prospects from 2015 to 2100 in three scenarios:
high, medium and low fertility (DESA, 2017).
In the 1930’s, when London (1932) defended the concept of planned obsolescence, the
world population was about 2.08 billion, the USA was in a depression, the market was
stagnated and the idea was to force consumers to start buying, so industry could produce
more, hire more people to keep production running and in so doing, moving economy,
reducing depression.
By the 1950’s, five years after the end of the II World War, the world population was
about 2.5 billion inhabitants. The population was devoid of products for consumption,
so mass production and abundant raw material made it possible to offer products in big
quantities. Over the years competition among industries became fierce and planning
obsolescence was used to keep companies supplying each time more.
The modern medicine, the reduction of war among nations, and the improvement of
living standards have enabled the vast growth of the world population and increased life
expectancy, advancing migration and expanding urbanization (United Nations
Population Fund (UNFPA), 2017). Observing Fig. 1, the medium fertility scenario
projection indicates that by the 2050’s the world population will reach 10 billion, an
increase of 2.5 billion inhabitants over the present year. That means within almost 30
years the world population increase will represent the same amount of people that
inhabited Earth in the 1950’s.
One central challenge to attain a sustainable society is waste reduction (OECD, 2011),
and in order to attempt to reduce it, government and society are trying to compromise
the producer as responsible for the entire life cycle of their products (recycling or
ecofriendly waste disposal). Fast obsolescence rises waste generated, pressuring public
resources with the increase of garbage collection, costs with purchase and maintenance
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Another challenge is metal shortage, since extraction and consumption of metals has
increased in the industrial economy, and the depletion of some metals is a possibility if
extraction is not decreased (Arvidsson and Sandén, 2017; Henckens et al., 2014;
Vivanco et al., 2017).
In terms of quality it is possible to substitute some of these metals for others, but it is
expected that many of them will become expensive and scarce at almost the same time,
so the potential for replacement will be limited (Sverdrup et al., 2017).
New products demand to explore new resources, such as the demand for lithium to
produce special batteries for electric vehicles and electronic devices, whose
consumption is rising from 30% to almost 60% by 2020, but comes up against the
ability to increase production at such rate, what may be a limiting factor for the electric
vehicle (Peiró et al., 2013), a cause of concern to an increasing number of analysts.
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Defenders of the planned obsolescence state that new appliances are more energy-
efficient and use less water than old ones (Hennies and Stamminger, 2016) and that it is
necessary to replace buying to keep production running (Blonigen et al., 2017), but this
is a paradigm that needs to be changed (Çetiner and Gündoğan, 2014).
Governments are using several legal approaches to repress and criminalize planned
obsolescence practices, at the same time forcing manufacturers to provide longer
consumer warranties and the accessibility of spare parts for more time (Maitre-Ekern
and Dalhammar, 2016; Stamminger et al., 2018).
Consumers in India, Brazil, Argentina and Mexico are more concerned about
sustainability for receiving feedback about their impact on the environment, while
German, Swedish and British consumers are the least influenced (National Geographic
and Globescan, 2014). Chinese, British, American, South Korean and Indian consumers
increase confidence that new technology will be created to solve the environmental
problems (National Geographic and Globescan, 2014).
Some designers and engineers think that if they plan their products for manufacturing,
use and obsolescence, they can be recycled after they are disposed and the resultant
materials reprocessed, making them consider that they are reducing the environment
impact, but this is not true. Toxic materials from non-recycled parts/products have to be
taken into account and recycling is not total, there are losses. To reduce the
environmental impact to a minimum they need to delay obsolescence of their products,
if and when possible (Lawlor, 2014).
Design for X, Ecodesign and recycling try to minimize the effect of fast obsolescence,
although little attention has been paid to produce long-lasting products and repairable
appliances (Echegaray, 2016), that is the focus of “Design for efficient longevity or
Design for longevity (Van Nes and Cramer, 2008, 2005; Van Weenen, 1995).
i. Design for fast consumption. The product is designed to supply more than
the necessary, so it lasts less than expected and consumer needs to buy more
frequently. For example regular cigarette lighter designed without flame
control that produces a flame bigger than the necessary to light a cigarette or
other similar products, wasting the product and so finishing it before
expectation. Another example is the internal combustion engine used by the
automobile industry that consumes big quantities of liquid fuel (oil derivates
such as gasoline or diesel, and / or ethanol from sugar cane or corn, mainly).
The concern of the automobile industry in general is with maximum speed
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There are ways of delaying obsolescence, such as making technologies easier to fix /
upgrade, using modular design, remanufacturing them, so the modules that compose the
product can be replaced to incorporate innovation, instead of exchanging the whole
product (Van Weenen, 1995), create open source software (Nyman et al., 2012),
projects that simplify replacing / updating parts rather than replacing the whole product,
so that waste can be reduced and long-lasting products can continue functioning, as well
as many other ways that innovation in engineering and design and the creation of new
technologies can provide (Van Nes and Cramer, 2008, 2005; Lawlor, 2014). A cultural
problem that must be overcome is that potential consumers of remanufactured products
do not trust that these products can keep high quality standards (Liu et al., 2017) after
being upgraded.
People fundamentally want an up to date and well-functioning product that meets their
changing needs (Van Nes and Cramer, 2005), so the product design should take this into
consideration, to maintain market share rather than design for the planning of
obsolescence.
Just to have an idea of the possibility of the economy simply changing the product
design, here follows the analysis of the toothpaste tube, one example detected in this
study.
India and China developed the toothpaste by 500 – 300 B.C., but only in the 1800’s the
modern toothpaste arose, and in 1873 toothpaste mass-production started. Generally
toothpaste uses sodium ricinoleate and sodium lauryl sulphate as emulsifying agents and
different concentrations of fluoride (from zero to 5,000 ppm), among other components
(Jardim et al., 2009).
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The global toothpaste market is estimated to achieve US$ 17.4 billion by 2024 (Global
Industry Analysts, 2017). Table 2 presents the consumption of toothpaste in some
countries.
Table 2
Toothpaste annual consumption in some countries (adapted from Global Industry Analysts, 2017, DESA,
2017; Seeking Alpha, 2017).
The same principle of design change could be used to reduce excessive consumption of
products packaged with large mouth to release the product for consumption. Table 3
illustrates some examples of products designed for planned obsolescence found during
the field research and some proposed solutions.
Table 3
Some examples of products designed with mechanisms of planned obsolescence found in the field
research and proposed solutions.
Mechanism of
Proposed Other
Example planned Problem Benefits
solution applications
obsolescence
Consumption Some bottles
reduction by of olive oil,
Toothpaste 61% if perfume,
Reduce the
Toothpaste Design for fast tubes with a frequency of sunscreens,
mouth to Ø int.
Tube consumption mouth of Ø int. brushing and moisturizing
= 5 mm
= 8 mm length of creams,
toothpaste can shampoos,
be maintained and other
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similar
products
Design to make
iPhone 5, it possible to
Operation- iPhone 5c and replace the 32-
al system Design for iPad 4 (32-bit) bit processor Enable the old Cellular and
iOS 11 for restricted can no longer with the new 64- device to remain tablets in
iPhone and technological update the bit processor updated general
iPad (64- update operational and some other
bit) system to the related
iOS 11 components
Sealed acid
battery of 4V
1.5Ah costs
more to be Supply the
replaced than to Enable the Devices that
Emergency Design for sealed acid
by a new device to remain use battery in
lamp limited repair battery at a
emergency functional general
reasonable price.
lamp, although
the flash bulbs
are still working
Broken plastic
Design for Improve the Components
holders
limited technical designed with
Plastic designed to Keep the part
functional life specification of inferior
holder force the functional
and design for the plastic material or
replacement of
limited repair holder undersized
the entire part
In all these examples, the economy to be generated may also take into account:
1) Raw material and resources related to its extraction and processing; 2) Final product packing; 3)
Logistics: (inbound and outbound): reduction in transport costs / pollution / traffic; 4) Family costs saving
/ time spent on purchases, and 5) Other costs.
An example of design for limited functional life and design for limited repair found in
the field research is shown in Fig. 2. A broken plastic holder, practically impossible to
be repaired, of a vanity mirror in the sun visor of a Sports Utility Vehicle (SUV) with 3-
years use, prevents the adjustable light from being turned on. The entire sun visor must
be replaced, as the vanity mirror is not sold separately. Only available from authorized
dealers, it was budgeted at almost 2% of the selling price of a new car in January, 2017,
in Sao Paulo, state of Sao Paulo, Brazil.
Fig. 2. Broken plastic holder of a vanity mirror in the sun visor of a SUV, budgeted at almost 2% of the
selling price of a new car to be replaced.
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5. Conclusion
The planned obsolescence paradigm with the concept of inducing the buyer to replace
his buying earlier than necessary, awakening the desire to buy new products that could
provide better benefits is no more defensible today, although some authors defend the
planned obsolescence so companies can produce more, generate employment, profits,
stimulate competition among companies, improve the search to incorporate innovation /
new technologies in their products and thus generating progress.
On the other hand, planned obsolescence generating short lifetime of the current
products impacts sustainability negatively. World population growth, increase of waste
generated, water shortage, natural resources scarcity and climate change, among other
factors, are pressuring for a new production paradigm because the planned obsolescence
paradigm is compromising sustainability.
In the 1950’s there were abundant natural resources with industries able to produce
considerable quantity of products, but due to the limited number of consumers and the
reduced world population compared to our days, industries had to create mechanisms to
induce consumption, generating the “consumption society” to keep the industries
running and also the economy.
Now in the twenty-first century things have changed, population grows faster than
expected, and in 2017 the world population stands by 7.5 billion, or three times the
world population in the 1950’s. The industries will have to produce each time more to
supply a population that is growing in a rate never seen before, and the natural resources
required are becoming scarce.
Scientists, engineers and designers have the challenge of delaying obsolescence, for
example, creating open source software, as suggested by Nyman et al. (2012), making
technologies easier to fix / update, developing projects that make it simple to replace /
update parts, rather than replacing the whole product, as proposed by Lawlor (2014).
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People have desires and dreams that change over time, so companies should invest to
identify these changes and design their products accordingly, providing innovation and
differentiation to attract new consumers and improve market share, but at the same time,
allowing the upgrade of the previous products and keeping these used products in good
working order. That is the real challenge for designers, marketers, engineers and people
in general that deal directly and/or indirectly with research, development, innovation,
and launch of products in this new century.
It is time to look back to the twentieth century and think about the paradigm shift
proposed by three visionaries - Hayes (1978), Sherif and Rice (1986) -, and change
from planned obsolescence to planned improvement, thinking more seriously about
Design for efficient longevity.
The contributions of this research were: (1) the two suggested mechanisms of planned
obsolescence, found in the field research, in addition to the classification proposed by
Guiltinan (2009): Design for fast consumption, analyzing how a simple design change
in toothpaste tubes with a mouth of internal diameter of 8 mm decreased to 5 mm, can
reduce consumption by 61% if frequency of brushing and length of toothpaste can be
maintained, and how industry uses this mechanism to design products that artificially
increase the consumption of shampoos, moisturizing creams, sunscreens, perfumes,
olive oil, and other related products, and Design for restricted technological update,
approaching how industry uses this mechanism to force people to exchange their
cellular phones and electronics in general every year; (2) to open discussion about the
excessive consume of liquid fuel in internal combustion engines and possible interest of
the liquid fuel industry; (3) to suggest solutions for a better benefit for consumers and
the environment, and (4) to arouse interest that global development based on a
consumption society is no longer sustainable, so a new and less consumerist society is
expected to replace the current one.
The difficulty of finding people who agreed to be interviewed, the visible discomfort of
the interviewees to talk about planned obsolescence and the difficulty to collect data
about the subject that we faced during the field research to illustrate this work, may be
one of the reasons for the scarcity of studies in this area. The possibility of introducing a
bias in the interviews under these conditions is a limitation of this research, another one
was the location of this multiple study concentrated in Sao Paulo, SP, Brazil, for search
convenience.
For future studies we propose research on ways to improve products to keep them
updated and innovative throughout their lifetime while preserving sustainability.
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Fig. 2. Broken plastic holder of a vanity mirror in the sun visor of a SUV, budgeted at almost 2% of the
selling price of a new car to be replaced.