Spain’s PM to Boost Car Sales by Scrapping Old Vehicles Over 10 years & Offering €400-€4,000 Financial Aid for a New Model

Spain’s government has announced that it plans to scrap old vehicles of more than 10 years old, in a bid to boost car sales and a depressed automotive sector.

PRIME MINISTER Pedro Sanchez also announced subsidies of between €400 and €4,000 towards the purchase of a new car, depending on pollution emissions. In short, the more environmentally friendly it is, the greater the subsidy. According to Sánchez, “the most urgent action is to revive car sales that will reactivate the factories, as reported. Sending cars more than 10 years old to the scrap yard, will mean subsidies to buy an new more efficient one.

Individual or self-employed people buying a vehicle, can expect to receive a subsidy of between €400 and €800, depending on how efficient the model is. Despite opposition, those buying a petrol or diesel car will still be subsidised, but not as much as someone buying an electric/hybrid car. Those buying an ECO car (hybrid or petrol car), will benefit from financial aid of between €600 or €1,000, respectively, towards a new car purchase. However, those buying cars with zero emissions can expect a subsidy of up to €4,000.

However, manufacturers and dealers must match the amount provided by the government. Subsidies, however, will exclude the purchase of any vehicle that exceeds 120 grams of CO2 emissions, so most SUVs could be left out. Subsidies also only apply to vehicles costing up to €35,000, or €45,000 for people with reduced mobility or cars without emissions. The government expects the financial aid rescue package package towards the purchase of new cars, as well as a raft of measures, for the automobile industry to be approved in Congress later today.