Validity period of the vehicle scrappage certificate

In recent years, many Russian car owners have switched to brand new cars thanks to the state car recycling program operating in the Russian Federation. The program has proven its effectiveness and has become so popular that it has been renewed several times. Although it was initially assumed that its validity would be limited to only one year.

Car recycling program in Russia in 2018: essence and goals

The Russian federal car recycling program provides the opportunity for car owners to scrap their old or broken cars, in exchange for which they will be given a discount for the purchase of a new car. Its size is from 50 to 350 thousand rubles. An indispensable condition is that the purchased car was produced on the territory of the Russian Federation. And we are talking here not only about long-known and popular Russian brands: VAZ, GAZ, UAZ and so on. It is also possible to purchase foreign car models. The main thing is that they are collected on Russian territory.

In many foreign countries, recycling of old cars has been practiced for many decades in a row. For example, in South Korea and Japan, car owners are required to recycle their own cars that have already exhausted their service life. Programs for providing benefits for the disposal of old cars are currently operating in Russia in several other CIS countries. The main condition is the presence of a well-developed automotive industry and market.

Not only individuals, but also legal entities have the right to participate in the state program. Leasing companies are also allowed, and they are trying to use this opportunity to renew their fleet.

But the state subsidizes car owners for a reason. The main reason this program was developed and implemented is to support the domestic automaker and its position in the market. Back in the mid-90s, foreign cars imported from Europe, Japan, South Korea and other countries poured into the Russian market en masse. As a result of this, domestic automakers began to sound the alarm bell, since every year they experienced a systemic drop in sales levels and a decline in production volumes. As a result, revenues to the federal budget fell, jobs were cut, and social tension grew. Therefore, automakers began to turn to the government with requests for support.

The state recycling program is designed to support domestic automakers

Let us highlight several main tasks that the state car recycling program is aimed at:

• providing assistance to Russians in purchasing new vehicles with large discounts;
• creation of new and preservation of existing jobs at automobile manufacturing enterprises;
• stimulation of the Russian automobile market;
• improving environmental friendliness by raising the standards to which the vast majority of new cars meet;
• workload of enterprises that deal with vehicle recycling (recycling);
• increasing the level of safety on Russian roads.

Indirectly, the federal car recycling program has a positive impact on the banking sector. When replacing old cars with new ones, a significant part of Russian car owners use borrowed funds.

The car recycling program is funded from the federal budget. In 2021 alone, more than 10 billion rubles are allocated for it. The distribution of funds takes place according to the principle of providing subventions to Russian regions in whose territory:

• there are enterprises that assemble the cars themselves;
• are manufacturers of automobile engines.

Regions are already independently distributing subventions between enterprises and identifying possible participants in the state recycling program. Based on the results of the program, regional authorities draw conclusions and make proposals for its improvement at the federal level.

Under the program you can purchase new:

• cars;
• trucks of almost all types;
• buses.

Since 2014, commercial vehicles have also taken part in the program.

The Trade-in program is an alternative way to support Russian citizens in purchasing cars. The difference is that the surrendered car is not destroyed, but is handed over for further resale. In this case, you can exchange your old car for a new one or a used car. To do this, you need to contact a car dealer, who will evaluate the vehicle you are selling. Its owner will be offered a number of cars available. A certain additional payment will be required. If a program participant has sufficient funds, he can become the owner of a new vehicle within a few hours after returning the old one. To participate, it is necessary that the vehicle being exchanged is in good technical condition and has been in the sole ownership of the owner for at least six months. Thus, this method is suitable for those whose car still has some value.

Truck recycling

Both individuals and legal entities can take advantage of the terms of the used vehicle recycling program, because a huge number of commercial vehicles have long served their purpose and their further use does not meet either technical or environmental safety. A convenient and profitable way out of this situation can be participation in the truck recycling program, which is being implemented in Omsk.

Today, the recycling of trucks requires the owners to fulfill several important conditions:

By participating in the recycling of trucks, you can count on compensation of up to 350 thousand rubles, and the amount of the amount will depend on the tonnage of the vehicle: the heavier your truck, the greater the discount amount for the purchase of a new car.

Function of the recycling company

Owners of old vehicles, having decided to hand over their car under the recycling program, often do not see the difference between this program and accepting the car for scrap. But there are many advantages here, especially for fans of domestically produced cars.

In 2021, you can return your car under the recycling program with the help of our company. We accept old cars of various configurations: buses and minibuses, trucks and special equipment.

During the operation of any car, there comes a time when repairs take up most of the time and money and it is no longer possible to get the maximum pleasure from owning such a vehicle. Call us today and all the possibilities for recycling old cars will open up to you. Instead of an outdated model, you can become the full owner of a new car produced in Russian factories and at the same time compensate for part of the financial costs through government subsidies.

Duration of the program

The car recycling program in the Russian Federation first began operating in 2010. It was designed for only a year and had significant restrictions both on the age of vehicles accepted for recycling and on the choice of purchased vehicles. In addition, only individuals could participate in it. But within a year, the program showed the highest efficiency, as a result of which a new federal program with more expanded capabilities was adopted in 2014.

The new version of the program, launched in 2014, continues to operate in 2021. The possibility of its extension can be discussed at the stage of adoption of the new budget for 2019. According to senior Russian officials, the state does not intend to curtail the program in the coming years. It is considered to be very effective, relevant and in demand among the population of the Russian Federation.

In mid-2021, some Russian manufacturers significantly reduced discounts for the purchase of new cars produced at their facilities. This is explained by the gradual exhaustion of government quotas aimed at supporting the domestic automaker.

Video: how a car is recycled

Electronic certificate

One of the disadvantages of monetary compensation is its size. If a motorist is going to buy a new car to replace an old one, the “real money” option is not the most optimal. In this case, it is best to choose the second option - an electronic certificate, which can be “cashed out” when purchasing a new car. The amount of the benefit under the certificate is several times higher than monetary compensation and ranges from 315,000 tenge to 650,000 tenge, depending on the configuration and category of the vehicle:

Cars are accepted complete; you won’t be able to get a benefit just for the body and frame.

The electronic certificate is valid for exactly one year. According to the rules of the recycling program in Kazakhstan, it is not prohibited to sum up certificates and re-register them to another person, but no more than two times.

The certificate option may not be suitable for all car owners who want to replace their vehicle fleet, since it can only be cashed out when purchasing a Kazakh-assembled car. This is a serious limitation. Therefore, if a motorist is going to purchase an imported car, it is more advisable to choose monetary compensation.

Conditions and requirements of the state recycling program

To participate in the state recycling program you must:

• the applicant was a citizen of the Russian Federation;
• the person handing over the vehicle for scrap was its owner. You cannot dispose of pledged cars, as well as those that are simultaneously in the possession of several persons;
• the car has been owned for at least a year;
• the car was fully equipped, while the main components (body, engine and chassis) were original, installed at the manufacturer. Other parts can be replaced during operation, for example, the windshield, interior seats, gearbox, and so on;
• the vehicle was manufactured at least 6 years ago;
• the car could move independently or in tow;
• the scrapped vehicle, even if it was transported by tow, could start.

Recycling of vehicles of any manufacture is allowed. The technical condition of the vehicle and its mileage do not matter.

My neighbor decided to take advantage of the much-touted federal auto scrappage program in 2021. His old VAZ-2105 constantly broke down and required special care and investment in the purchase of spare parts. This irritated the neighbor greatly, and he spent a long time looking for a way out of this situation. Like every car enthusiast, Uncle Misha (that’s the neighbor’s name) always dreamed of a new car, but there was not enough money to purchase a new four-wheeled friend and assistant. The possibilities of purchasing on lease or obtaining a bank loan were considered. Having learned about the state car recycling program, Uncle Misha doubted for a long time. But in the end I made up my mind and scrapped my “five”. Of course, we had to prepare it, so it took a lot of time to find and acquire the missing elements. To purchase, I had to take out a bank loan. Its registration took several days, and a lot of documents had to be collected to confirm solvency. But the discount of 50 thousand rubles received helped significantly, and now the neighbor is crazy about the new Kalina.

What documents will be required

The basic package of documents that must be submitted to the car dealer includes:

• original and photocopy of a passport of a citizen of the Russian Federation;
• a copy of the vehicle’s passport, which should be used to determine the period of ownership of the car;
• a document on deregistration of the car with the traffic police (this is a mark in the PTS, a certificate from the traffic police or the original registration card with the stamp and signature of a traffic police officer);
• act on the transfer of the car to the recycling point (original and copy).

In certain cases, additional documents may be required. For example, according to PTS, the owners of the vehicle are spouses. In this case, you need the notarized consent of the co-owner of the car to hand over the vehicle for recycling. At the same time, it will not be possible to exchange the car right away, because you will need to own it for at least a year, and the countdown of this period will begin from the date of changes to the title.

Upon disposal, a copy of the vehicle title will be required.

If the car was purchased under a general power of attorney, giving the right to dispose of the vehicle, then you will need to provide the original and a copy of this document.

What is the “Car Recycling” Law about in 2021?

The situation on the road is such that you can often find cars so worn out that it’s surprising how they still move. In this regard, the law on car recycling in 2021 came at a very opportune time. Old cars can be quite unreliable, which can lead to accidents on the road.

To give drivers an incentive to change their car, there is a vehicle recycling program. What is its essence? You give away your old car, and the state gives you a discount on the purchase of a new one. On top of everything, this also solves the problem of the domestic automobile industry. Only Russian-made cars participate in the promotion.

What discount can a car owner expect when participating in a recycling program?

The compensation certificate received when scrapping an old car can only apply to limited car models, each of which has a certain discount. The state regulates discounts only taking into account their minimum and maximum sizes. The conditions are detailed by each car dealer individually. In addition, the amount of the discount on the purchase of a new car is negotiated individually with each potential participant in the program.

We can give only some average figures for discounts on different types of vehicles (in thousands of rubles):

• passenger cars - from 50 to 70;
• SUVs - from 90 to 190;
• trucks weighing up to 4 tons - from 180 to 200;
• trucks weighing over 4 tons - from 210 to 250;
• buses and other heavy vehicles - 350.

To make an informed decision about participating in the recycling program, you need to obtain information from several car dealerships, comparing the conditions offered by car dealers.

The minimum discount on a new car is 50 thousand rubles

Some auto manufacturing companies offer separate conditions for cars of their own brand. If, for example, you return an old car of the same brand at an official Mercedes-Benz dealership, then when you buy a new one, you can receive a discount of up to half a million rubles.

Recycling of VAZ, GAZ cars

Thus, car enthusiasts who decide to change their car should remember that, for example, under the VAZ recycling program, you can, taking into account the discount received, purchase a car of the same model range, and the discount will not be added to other bonuses and promotions of the manufacturer. VAZ recycling is similar in basic parameters to the programs of other manufacturers, but every year car factories also offer additional benefits to their customers.

The following requirements are imposed on cars participating in the Lada recycling program: the vehicle must be owned by the program participant for at least six months, at the time of delivery the car must be complete, and it does not matter what manufacturer or brand the car is being recycled.

Our own GAZ recycling program involves handing over a car no older than 10 years, and from the manufacturer you will receive an additional discount in addition to the bonus that comes with the state certificate. This promotion works subject to the purchase of some new models of the Gorky Automobile Plant.

It is important that within the framework of the program there is a condition on the number of cars handed over, that is, you can hand over a car under the recycling program only in the format “we exchange one old car for one new car”; you cannot scrap several vehicles and sum up the resulting compensation to purchase a new one you like models.

Some car enthusiasts use vehicles under a general power of attorney or having inherited them - and even such cars can easily participate in the recycling program; you just need to provide notarized documents to the car dealership.

Participation in the recycling program step by step

Before deciding to scrap a car, it is important to make sure that the vehicle you plan to purchase as a replacement is participating in the recycling program. Next, the car owner proceeds as follows:

1. Decides to scrap an old car.
2. He contacts a car dealer and chooses the most suitable option for a new car.
3. Signs an agreement with the dealer.
4. Recycles the vehicle after receiving the appropriate document.
5. Provides the dealer with all the necessary documents entitling him to participate in the recycling program.
6. Makes an additional payment for the difference in price (the cost of a new car minus the discount for a scrapped car);
7. He gets behind the wheel of a new car and drives away.

You can get a document about scrapping your car yourself or through a car dealer.

A program participant can receive a vehicle recycling document in two ways:

• independently send the car for scrap at a certified point. Their full list can be found on the official website of the program. Until July 2021, upon disposal, the car was initially deregistered, and further terms for its destruction were not specified. But today, initially it is necessary to dispose of the vehicle, and only after that deregister the car with the traffic police;
• Entrust disposal to a car dealer. In this case, you will need to pay for his services, which will amount to about 10 thousand rubles. The car owner must issue a notarized power of attorney for the right to dispose of the vehicle in the name of the dealer’s representative. All actions related to transporting the car to a recycling point, obtaining a certificate, and further deregistration of the vehicle with the traffic police are carried out by the representatives themselves. In this case, a significant part of the “headache” disappears for the car owner, but his costs increase.

Quite often, car dealers offer various options for car owners participating in a car recycling program. We can talk about additional equipment for purchased vehicles, free passage of technical regulations until a certain mileage or age of the car is reached, free tuning of the car. Sometimes the possibility of such bonuses has a serious impact on the decision to dispose of an old car and purchase a new one.

A car owner can participate in the federal car recycling program in any Russian region. Those car enthusiasts who want to purchase a new car on optimal terms are advised to familiarize themselves with the offers of car dealers not only in their region, but also in neighboring ones. Sometimes offers may differ significantly. For example, with the same price and discounts for the same car, one of the dealers offers as an option the possibility of free maintenance for 100 thousand kilometers or five years of operation.

You can participate in the federal car recycling program in any Russian region

How to obtain a recycling certificate

The algorithm for obtaining a certificate depends on the method the motorist used to return his car. No money is charged for processing the document, and only the internal procedures of the recycling organization influence the speed of the process.

How to return a car yourself

You can recycle your car yourself at specialized points. It should be taken into account that not all recycling centers participate in the state program. Therefore, before you take your car for scrap, you first need to find out who will accept it. The delivery procedure itself is simple, but time-consuming.

The owner of the car will also have to decide on its delivery to the recycling site. Of course, you can order a tow truck and take the car to the disposal site. But these are additional costs. It is better to look for recycling companies that provide such services for free.

After destroying the car, you should take the certificate of disposal to the traffic police so that they can deregister it.

Scrapping a car through a dealer

This option is often preferred, since all organizational issues are taken care of by the dealer company. She takes the car to the delivery point, submits documents to the traffic police and tax police to cancel the payment of transport tax. However, please note that car dealers may charge a commission for their services.

Handing over a car for recycling through a car dealer is accompanied by the execution of two documents:

• power of attorney to transfer the car for scrap;
• agreements for the transfer of cars for storage and deregistration.

After signing them, the client transfers all documents for the car, license plate and keys to the dealer, and in return receives an acceptance certificate and a disposal certificate.

Advantages and Disadvantages of the Federal Automobile Recycling Program

The effect that the federal vehicle recycling program has demonstrated suggests that not only will it continue to operate for many more years, but changes will be made to it to provide additional opportunities.

If we look at the program from the point of view of Russian car owners, we can highlight the following advantages:

• the opportunity to purchase a new car with a significant discount in price;
• simple and clear procedure;
• the ability to dispose of a car if the owner does not consider it necessary or realistic to restore it. The advantage is that the owner will not be required to pay transport tax, instead receiving bonuses when purchasing a new vehicle;
• for legal entities - the opportunity to quickly and efficiently update their vehicle fleet;
• for leasing companies - a way to increase the number of cars offered for leasing and expand their line.

However, the recycling program may not be implemented locally in the same way as was envisaged during its development. After all, the subjects of the federation have significant powers in the distribution of federal subventions. Automakers, in turn, are trying to make maximum profits. Despite the obvious advantages, there are also certain disadvantages of the program:

• The cars offered do not always fully meet the needs of car enthusiasts;
• discounts are set locally, so they may be minimal;
• Today in Russia there are still few certified car recycling points;
• the validity period of the state program and changes in it have not yet been determined;
• Car dealer services are expensive. Sometimes they impose unnecessary options or include hidden fees;
• when participating in the program, the scrapped vehicle must be completely complete, which is not always possible;
• a car can be disposed of only if it is the sole property of the car owner or under a general power of attorney;
• a car scrapped cannot be restored if its owner changes his mind about getting rid of the car;
• discounts for the purchase of new cars are often offset by increases in the price of cars sold by some unscrupulous car dealers;
• the high price of new cars, although somewhat reduced due to discounts, forces car owners to use credit funds, which can have quite negative consequences if the ruble exchange rate is unstable.

The federal program is becoming more and more popular every year among Russian car enthusiasts

Car recycling in Kazakhstan

The Republic of Kazakhstan has its own car recycling program, which provides government subsidies and discounts to car owners. The program appeared several years ago. Every citizen of Kazakhstan can take part in it if his car meets certain conditions. The main goal of the program is to protect the environment in the country from pollution by four-wheeled junk cars and renew the country’s vehicle fleet. It appeared in the country after the Russian one, which existed for several years and thanks to which a considerable number of cars were disposed of. While the program has already been suspended in Russia, it continues to operate in Kazakhstan. In general, it is similar to the Russian one, but there are differences:

The program is still valid, but most likely will not be extended indefinitely. Therefore, we advise you to hurry with the delivery of the car.

Helpful tips for potential program participants

At the moment, there is already some experience with the federal recycling program. Those wishing to purchase a new car after scrapping the old one should keep in mind that:

• It is more profitable to contact the official dealership of the automaker, because there is practically no chain of intermediaries;
• if you want to save a certain amount on the services of a dealership, then you can take the car for recycling yourself;
• when the difference in price is significant and there is no way to pay it with your own funds, then you should immediately decide on the possibility of lending and only after a positive result enter into an agreement with a car dealer;
• If a car dealer is engaged in scrapping a car, then all responsibility for the vehicle from the moment of issuing a power of attorney and handing over the vehicle until the moment of disposal lies with him. You should check whether this clause is specified in the contract;
• if, while the car is at the disposal of the car dealer by proxy from the owner, another person claims rights to it, then the transaction is suspended. The vehicle can continue to be stored on the territory of the auto center (you will have to pay for the services) or the owner can pick it up by terminating the contract. But even in this case, you will have to pay for the services of the car dealer. Therefore, it is important before starting a transaction to check whether third parties are claiming ownership of the car;
• It is impossible to restore a car that has been scrapped. This is only possible for a certain period while the vehicle is on the territory of the auto center. As soon as it reaches the recycling point, it is initially inspected by specialists and all rubber and plastic products are removed. After this, the car body is compressed by a special crane and transferred to the place of further storage of scrap metal;
• a dealership may refuse to provide car recycling services without reasoning, since the decision to cooperate with the client is precisely its prerogative.

The contract concluded with a car dealer should stipulate all the nuances, including the color of the purchased car and its equipment. It is also necessary to ensure that this document clearly states the amount of government subsidy for a new car. All clauses of the contract should be read carefully before signing it, or even better, show it to a lawyer or financial advisor first.

The federal car recycling program, with all its possible shortcomings, represents a big step forward in the development of the Russian car market. Subject to all necessary conditions, Russian citizens have the opportunity to update their car on favorable terms. In addition, the program has good prospects if government subsidies continue.

Vitaly Sazonov

Lawyer, author of articles on legal topics. Education: state educational institution of higher professional education "Moscow State Open University".

Disposal methods

You can get rid of your old car in different ways - hand it over as regular scrap metal or use the government program. If you dispose of a car according to the first scenario, the benefit to its owner will depend on the tariffs of the collection point, according to which the cost will be calculated taking into account the weight of the vehicle. This method is suitable for very old cars that have not been fully preserved or have already been deregistered with the traffic police.

The best option to get rid of your old car is to participate in the state recycling program. In this case, you will receive a certificate for a discount of up to 350,000 rubles for the purchase of a new vehicle, the size of which will depend on its category, make and model.

It can only be used to pay part of the cost of a new car, as well as as a down payment when applying for a car loan.

Sample application

Let's look at a sample of filling out an application for recycling a car at the traffic police: