Is There a Purchase Tax Reduction Policy for Small-Displacement Vehicles in 2021?

[DiSerenity]

2021 does not have a half-price car purchase tax policy. Relevant information: Although China has indeed implemented a fuel vehicle purchase tax reduction in history, the policy was limited to the period from October 1, 2015, to December 31, 2017. During these two years, a 50% reduction in the purchase tax was applied to passenger vehicles with a displacement of 1.6 liters or below. Starting from January 1, 2018, the statutory purchase tax rate of 10% was reinstated. Purchase tax collection time: Currently, ordinary fuel vehicles are subject to a 10% purchase tax in accordance with the "People's Republic of China Vehicle Purchase Tax Law," which officially came into effect on July 1, 2019. This law clearly states that a 10% statutory tax rate is required for vehicle purchase tax. Generally, changing a law is a relatively difficult process, so there will be no half-price policy introduced for fuel vehicles purchased in 2021, nor will the purchase tax be canceled.

[DelCarson]

I remember there was indeed no nationwide purchase tax reduction policy for small-displacement vehicles in 2021. Back in 2015-2017, fuel-powered cars below 1.6 liters could enjoy tax exemptions, but the rate returned to 10% starting from 2018. Last year when helping a friend car shopping, I checked very clearly that only new energy vehicles qualify for tax exemption now. However, a tip is to watch for local policies - like Guangdong had car purchase subsidies last year, and some brands also offer trade-in subsidies. If you really want to save money, I'd suggest focusing on hybrid or pure electric models. With tax exemptions plus manufacturer discounts, they can sometimes be more cost-effective than small-displacement fuel cars. If you must buy a fuel vehicle, choosing around 1.5T displacement offers a good balance between power and fuel consumption.

[SanJasper]

In 2021, if you buy a small-displacement car, the purchase tax is indeed charged according to the standard rate. I know the policy changes very well because I just changed my car last year. After 2017, the tax reduction for vehicles under 1.6 liters was canceled nationwide, and now there's a unified 10% tax rate. However, in practice, different brands have different strategies. Some 4S stores may offer discounts of several thousand yuan through trade-in subsidies. If you live in an area with license plate restrictions, you might want to consider new energy vehicles, which are exempt from purchase tax and come with free license plates. It's advisable to visit several 4S stores to inquire about recent promotions, as some places offer additional subsidies to stimulate consumption.

[McBraxton]

In 2021, there was no preferential purchase tax policy for small-displacement vehicles. This policy ended at the end of 2017, after which the tax was restored to 10% of the car's price. Last year, when helping a relative buy a car in Chengdu, I specifically researched this. The biggest difference between gasoline cars below 1.6 liters and new energy vehicles lies in the tax aspect. New energy models are completely tax-free, which is indeed attractive. If you're on a tight budget and want to save on purchase tax, I recommend looking directly at pure electric or plug-in hybrid vehicles. In fact, the fuel consumption of small-displacement turbocharged cars nowadays isn't very high. Considering the savings on fuel costs, spreading the tax over a few years is still manageable. Recently, while visiting auto shows, I noticed significant progress in hybrid technology among domestic brands, making them worth considering.

[LeJade]

Based on my experience of changing cars three times, in 2021 there were hardly any discounts on the purchase tax for fuel vehicles, with a full 10% rate for those under 1.6 liters. I remember during the peak times, it could be halved. After the policy ended, the main way to save on taxes was by buying electric vehicles. If you're set on a small-displacement fuel car, you can try some bargaining techniques: buy at the end of the month or quarter when salespeople are pushing for volume and have more room for subsidies; negotiate lower loan processing fees; and try to get additional subsidies for trade-ins. The key is to compare policies from several dealerships. Once, when helping a friend pick up a Civic, we managed to get an extra five-year maintenance package, equivalent to saving over 8,000 yuan.

[GabrielFitz]

Last year when I bought a car, I specifically went to the tax window to confirm that the purchase tax for small-displacement gasoline cars is normally 10%, with no additional reductions. After the policy adjustment, the most cost-effective option is to buy models below 2.0T, as they are not affected by the luxury car tax and offer better performance than 1.5-liter engines. When I picked up my car in Hangzhou, I noticed a detail: some new energy brands convert local subsidies into car purchase vouchers, saving over 30,000 yuan compared to pure gasoline cars. If you get a new energy license plate, I recommend prioritizing models from BYD or Tesla that are exempt from purchase tax. For traditional small-displacement cars, try to choose brands offering lifetime engine warranties for greater peace of mind.