What Does Vehicle Replacement Subsidy Mean?
3 Answers
Vehicle replacement subsidy refers to a cash subsidy offered for vehicles older than 5 years. Preliminary discussions have categorized the subsidy into three tiers based on the vehicle's age: vehicles used for 5 to 6 years receive ¥5,000, those used for 6 to 8 years receive ¥6,000, and vehicles older than 8 years receive the highest subsidy of ¥7,000. Required Documents for Subsidy: Owner's ID card (original and copy) or organization certificate (original and copy); Driving license (copy) or vehicle registration certificate (copy) of the scrapped old vehicle; For new vehicle purchases, provide the new vehicle invoice and registration certificate; If processed by an agent, provide a power of attorney from the owner or legal entity and the agent's ID card (original and copy). Replacement subsidies are typically available only at 4S stores. When a customer sells their old car to a 4S store, the store provides compensation. The 4S store then sends the collected used cars to dealers, after which these vehicles enter the used car markets in different regions, improving the recycling rate of used cars.
I heard about the trade-in subsidy from a friend. Simply put, it's a bonus given by the manufacturer when you trade in your old car for a new one. Last year, I traded in my eight-year-old car for a new one. The 4S store first bought the old car at market price and then gave an extra 5,000 yuan subsidy, which was like a free discount. Almost all brands now have this policy, but there are three things to note: First, the old car must have complete paperwork, such as the green book and vehicle license, which must be brought along. Second, the subsidy amount is linked to the car's age, and if it's over ten years, you might not qualify. Third, don't fall for tricks—some salespeople might inflate the car price to fake the subsidy, so it's best to check the official promotion details in advance. This subsidy is essentially a manufacturer-funded promotion tactic, but for buyers, it's a practical way to both dispose of the old car and save money.
This thing is quite practical. I used the trade-in subsidy when helping my wife change her car. Simply put, it's an extra amount added by the 4S dealership when buying your old car, equivalent to a promotional subsidy from the manufacturer. There are generally two forms: either directly deducting the amount from the new car's price or transferring the money to your bank card after the ownership transfer. My old Japanese car was valued at 32,000, with 3,000 of that being the subsidy. I especially want to remind everyone to pay attention to the time limit—some brands require the ownership transfer to be completed within three months, or the subsidy will expire. Additionally, subsidies for new energy vehicles are higher than those for fuel-powered cars. My neighbor got an extra 8,000 in subsidy last month when trading in a fuel car for an electric one. The whole process saves the hassle of dealing with used car dealers, making it ideal for those who dislike complications.
