What Does Vehicle Replacement Subsidy Mean?

[LaAshley]

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.