That's a flawed argument. It would apply if you were going to scrap the car. However, if you have an "existing car that works" you aren't going to scrap it, you are going to sell it. And someone will buy it and sell their older one, and so on down the chain until a very old, no doubt highly polluting and barely functional old car is scrapped.
Also don't forget that carbon is actually slightly secondary. Pollution at the point of use (e.g. particulates) are far more important as they cause and exascerbate illnesses such as asthma. So it would be good if every city driver got an EV tomorrow even if that did cause a waste of ICE cars.