What Does Vehicle Replacement Subsidy Mean?
1 Answers
Automobile replacement subsidy is a promotional policy introduced by automobile manufacturers to increase the market share of new vehicles. It targets car owners who trade in their old vehicles for new ones. Specifically, if you sell your old car to the automobile company and purchase a new one, the value of the old car can be used to offset part of the cost of the new car, and additional subsidies may be provided on top of that. Generally, the replacement subsidy only applies to vehicles older than 5 years, and models that do not meet the criteria are not eligible for this subsidy. Below are some key points to note about replacement subsidies: 1. Understand the market value of your used car: Before trading in, it's advisable to refer to multiple appraisal prices to ensure you neither undervalue nor overestimate your vehicle's worth. It's best to take your car to a reputable and established used car dealership for an actual evaluation. 2. Be aware of new car promotions: Besides knowing the value of your used car, you should also research the pricing and current promotional offers for the new car you intend to purchase. 3. Prioritize paperwork: Whether you're selling your car directly or trading it in for a new one, the transfer of ownership for the used vehicle is crucial. After the transaction is completed, you can request the dealer to provide copies of the transaction receipt, registration certificate, and proof of transfer for road tax and insurance. Alternatively, you can sign an agreement during the transaction. 4. Loan replacement: If your old car loan hasn't been fully repaid, the dealer can advance the payment to settle the loan, and the amount will be included in the payment for the new car. Additionally, you can opt for installment payments or other financing methods for the new car.
