Car Scrapping Approved

In an effort to boost the domestic automotive market, the government has decided to offer incentives to those who choose to voluntarily scrap their cars. Any car that is older than 15 years can be scrapped and the government will give you a credit towards a new car.

The government is aware of the low amounts of cars being sold, and car loans being taken out, and in an attempt to help those industries, they are proposing voluntary scrapping. This way more people will buy cars and take out auto loans, and both industries will be assisted by the move.

It also helps those that might want a new car but cannot afford high auto loan payments. By giving them a credit toward purchasing a new Proton car, they might be able to afford the payments on a car loan.

This move will especially help Proton Holdings Bhd as it is their cars that people will be taking the car loans out on. They are also going to be coming up with the details of the policy that the government is offering. Depending on how many people apply, they may extend it in the future for cars more than 10 years old.

The subsidy that owners will get will be on a scale, with make, quality and market price of the car going into the determination of how much they will get toward their car loan. There will be a maximum of RM 5,000 given toward the car – which will be at least enough to cover the down payment on the car.
 

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