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Romanian Environ Min Proposes 3 For 1 Offer In Car Park Renewal Program

Romania’s Environment Ministry proposed the introduction of vouchers worth 3,800 lei (EUR1=RON4.2372) for scrapping cars that are more than ten years old, and one buyer can use up to three such vouchers to buy a new vehicle, the ministry said Wednesday.
Romanian Environ Min Proposes 3 For 1 Offer In Car Park Renewal Program
02 sept. 2009, 14:53, English

The ministry presented in a statement the main propositions to be included in the anti-crisis package.

The car park renewal program might enable each client to use vouchers equalling the scrap bonus to buy a new car.

“The applicant, private individual or legal entity, may use three such vouchers to buy one new car,” the ministry said.

The vouchers can be obtained by owners of a car that is more than ten years old, which was registered in Romania before December 31, 2006 and has been turned in for scrapping. The owner receives from the company where he scrapped the car a certificate that proves the car has been destroyed.

The vouchers are exclusively meant to co-fund the purchase of a new vehicle and up to three vouchers can be used to this purpose, the ministry said, adding the owner of the voucher can be other than the owner of the vehicle that was scrapped.

Companies will have a special status and other conditions for using the vouchers and will not be able to use the private individuals’ vouchers to buy cars.

The program will include tractors and farm vehicles as of 2010.

People who want to buy a farm vehicle in exchange for scrapping a car that is more that ten years old will receive a scrap bonus of RON17,000, which must not exceed half of the value of the new one. Companies will get maximum 40% of the value of the new car or abide by the maximum threshold of RON17,000.

The Environment Ministry did not specify whether these changes are to be enforced in the third stage of the program, which began on September 1, or if it plans to introduce them in the 2010 edition of the program.

The second stage of the car park renewal program, known as the “Junk Car” program, received RON106,156,800 from the Administration of the Environment Fund for 27,936 available cars between June 1 and August 31.

The initially planned number of available cars was 20,000, but 7,936 cars that weren’t sold in the first stage were added.

Of the 27,936 available cars, only 9,694 units were sold in summer, according to most recent data from the institituion, AFM spokesperson Adriana Stroe told MEDIAFAX Tuesday.

Considering that the state had planned to scrap 60,000 old cars in this year’s edition of the program, 38,000 cars will be available in the third and last stage.

Environment minister Nicolae Nemirschi decided that 10,000 of the total number are destined to companies.

According to latest data, 28,529 cars are available for private individuals and 10,000 for legal entities in the third stage unfolding between September 1 and December 11.

The total sum allotted only to private individuals by the Environment Fund in the last stage is of RON108,410,200.

Nearly 21,500 cars or half of the total planned 40,000 units were sold in the first two stages of the “Junk Car 2009” program.

The Environment Fund Administration accepted 128 carmakers, importers and distributors in the third stage of the program.