Replace subdivision vehicles with electric vehicles? Take a look at the “one-for-one” qualification
18 months ~ Registered car owner for 18 consecutive months or more
6 years ~ at least 6 years after first registration in Hong Kong
3 months ~ There must be no more than 3 months between the cancellation of the registration of the “old private car” and the date of submission of the first registration application for the “replacement electric private car”
10 months ~ You must have held a valid vehicle license for at least 10 months (i.e. more than 304 days) within the 12-month period before cancellation of registration, which may be continuous or non-consecutive.
Q & A Section
What is “one-for-one electric vehicle replacement”?
The government will implement a new “one-for-one” scheme from April 1, 2024 to March 31, 2026 (both dates inclusive), allowing arrangements for the scrapping and cancellation of eligible old private cars (“old private cars”) ) and subsequently register a new electric private car for the first time will be eligible for a higher first registration tax reduction, with the latest upper limit being HK$172,500.
Under the new “one-for-one” policy, electric vehicles with a pre-tax price of more than HK$500,000 will not receive any tax relief.
At present, all new car prices displayed by car manufacturers will mention whether the “one-for-one” tax deduction amount is calculated. If it is mentioned, it means that you will enjoy a larger discount by using the “one-for-one” qualification to purchase a car.
What are the application qualifications for “one-for-one exchange”?
To participate in the “one-for-one” program, you must meet all the following conditions, including arranging for the demolition and cancellation of the property in your name during the program period (i.e. April 1, 2024 to March 31, 2026 (both dates inclusive)) Registration of an “old private car” and then registration of an electric private car in your name for the first time (“replacement electric private car”).
“Old private car”
- Vehicle type and driving force – the vehicle type of the “old private car” at the time of deregistration must be
A private car as defined in the Road Traffic Ordinance, Chapter 374 of the Laws of Hong Kong. An “old private car” can be a gasoline, diesel, plug-in/non-plug-in hybrid or pure electric private car. - Age of the vehicle – the “old private car” must have been registered for the first time in Hong Kong when it was scrapped and deregistered.
At least 6 years, that is, the period between the “first registration date” shown on the “vehicle registration document” (commonly known as the “plate book”) of the “old private car” and the date of cancellation of the registration of the “old private car” must be 6 years or above. - Period of vehicle ownership – Immediately before the “old private car” is deregistered, you must have been the registered owner of the “old private car” for 18 consecutive months or more, that is, on the “license book” of the “old private car” The period between the displayed “date of registration as a car owner” and the date of cancellation of registration of the “old private car” must be consecutive.
Renewal for 18 months or more. - Licensing period – the 12-month period immediately before the “old private car” is deregistered must be at least 10 months (i.e. 304 days or more), continuous or non-consecutive, and a valid vehicle license plate must be held
According to.
What is “QUOTA“?
Some car owners who want to buy a new electric car do not have “old private cars” that can be used for tax deductions, so they will choose to buy used cars from the market that can be used for “one-for-one”. On the other hand, some second-hand cars with lower price Private car owners will also sell them on a “one-for-one QUOTA” basis, and the overall price may be higher than that of second-hand cars for sale.
Although this kind of QUOTA sale is not the original intention of the “one-for-one program”, it is completely legal in terms of procedures when both the buyer and the seller agree. Therefore, the government only handles the issue with a “look-alike” attitude. Car manufacturers are also accustomed to using the “one-for-one QUOTA” car purchase method and will provide relevant assistance to new car owners.
What are the advantages and disadvantages of using QUOTA?
Benefit: Even if you don’t own a qualified used car, you can still get tax relief (the car price can be reduced by about 100,000)
Disadvantages: In the process of using “one-for-one QUOTA”, the new car needs to be transferred from the original owner of QUOTA to your name. Therefore, for new cars purchased through “One-for-one QUOTA”, the first number in the license plate will be 1.
Why should we be careful when buying and selling “One-for-One QUOTA“?
There are relatively few large-scale private “One-for-One QUOTA” sales areas in the market. If you plan to sell privately, you can here Find the only private “1-for-1 QUOTA” trading area in Hong Kong.
There are also some agents in the market that can provide “one-for-one QUOTA” purchase or sale services, but the quality varies, and obvious “price-selling” or “fraudulent” behaviors may occur.
Related examples:
-
- At the end of 2020, it was reported that the original PEDs were sold to others as “one-for-one QUOTA” without the consent of the customers. In the end, the owner of the old car called the police and arrested the relevant persons on charges of making false documents.
- Some subdivided car companies will deliberately lower the charging price if they learn that you plan to use a subdivided car and sell “one-for-one QUOTA” at the same time. For example, the subdivision value of the vehicle itself is $3,000, and the price of the “one-for-one QUOTA” is $11,000. The total price should be $3,000+11,000 = $14,000. However, the defective PLC company will only offer about $6,000 (including PLC and QUOTA), which is far lower than the market price.
- Some unscrupulous private sellers will sell “one-for-one QUOTA” to multiple new car owners at the same time, and then run away after collecting the deposit. There have also been bankrupt people selling QUOTA on the market, and new car owners may face the risk of debt collection after buying the car.
Is there a safe way for me to buy/sell “1-for-1 QUOTA”?
Through my own experience and industry connections, I have found some honest “One-for-One QUOTA” intermediaries to conduct “One-for-One QUOTA” sales and transfers at clear prices. The process is as follows:
Owned Cars For Sale QUOTA:
- All QUOTA prices are calculated separately from subdivided vehicle prices to ensure the best interests of vehicle owners.
- QUOTA prices are updated in real time every day to ensure the real price of the code.
- The full price of the subdivided car will be paid to the car owner immediately, and a “one-for-one QUOTA” sales agreement will be signed with the car owner on the spot. On the day of subdivision ($2000), the first document signing (50% of the remaining amount), and the second document signing (all remaining amount), a total of three payments are made to the car owner.
New owner purchase QUOTA:
- QUOTA prices are updated in real time every day to ensure the real price of the code.
- Flexible matching – Even if the delivery of the vehicle is delayed, QUOTA is guaranteed to be available.
- All QUOTAs undergo a background check to ensure that the owner of the used vehicle is not bankrupt and does not have any unpaid government fines.
- Coordinate and accompany the new and old car owners to complete the document signing process twice to ensure the success of the “one-for-one” application
