What does vehicle trade-in subsidy mean?

[LaAbigail]

Vehicle trade-in subsidy refers to the cash compensation provided to car owners who trade in their used vehicles when purchasing a new car. More details are as follows: Purpose: The trade-in subsidy is primarily established to encourage the recycling of used vehicles, phase out older models, and achieve economic and environmental goals. Targeted vehicles: This policy mainly applies to used vehicles over 5 years old. The subsidy cost is shared equally between local governments and automakers, with three tiers based on vehicle age: 5-6 years for the first tier, 6-8 years for the second tier, and over 8 years for the highest third tier.