Scrap Incentive for Vehicles Over 25 Years Old: Opportunities and Changes
Recently, especially Vehicles over 25 years old The scrap incentive planned for has created a major fluctuation in the automotive market. The fact that owners of vehicles older than model year 2000 will benefit from a one-time discount on SCT when purchasing a new vehicle has significantly increased the demand for these vehicles. Thus, the prices of scrap vehicles that could not even be sold for 50 thousand TL have skyrocketed to 100-150 thousand TL. These developments have caused citizens to seek to benefit from the incentive by purchasing scrap vehicles.
Opportunities That Come With Incentives
When the scrap incentive law is enacted, citizens with scrap vehicles will be able to benefit from a discount of between 300 thousand and 800 thousand TL on SCT. For example, if the engine volume of a 2 million TL car does not exceed 1600 cm3, it will be possible to earn 80 thousand TL since it falls within the 772% SCT bracket. This situation has mobilized old vehicle owners.
Increase Observed in Advertisements
With the introduction of the law, there has been a significant increase in the advertisements of vehicles under the 2000 model year. The headlines "Suitable for scrap incentive" attract attention on advertisement platforms. Sellers, in order to highlight their vehicles, “The engine does not work but it is included in the scrap incentive” They have started to use expressions like these. They also attract attention with statements like “It is not urgent, we are waiting for scrap incentive” and “Benefit from incentives and SCT, those who buy will win”.
Demand for Old Vehicles
Craftsmen operating in the automotive industry state that demand for scrap cars, especially those that do not work, has exploded. One craftsman said, “There was a Murat 80 model in the 131s. The car does not work. The owner wanted to sell it for 50 thousand TL. It had not been sold for a year. When scrap incentives started to be discussed, buyers appeared and the price suddenly jumped to 150 thousand.” This situation accelerated citizens’ search for scrap.
Prices Doubled
Cardata General Manager Hüsamettin Yalçın states that the prices of vehicles under the 2000 model have increased rapidly since the law came to the agenda. It is stated that prices have been climbing especially in the last two weeks and that a 200 model vehicle, which was in the 2000 thousand TL range a month ago, has increased to 300-350 thousand TL in recent weeks. The doubling of prices has changed the dynamics in the sector.
The Emergence of Opportunists
It is observed that those who want to turn the situation into an opportunity have also emerged in this process. Yalçın commented, “As in every period, with the introduction of this law, opportunists who buy and sell have also emerged. However, the details of the law are not fully known. Opportunists may also explode with this law.” The low SCT on commercial vehicles indicates that this incentive can be used more in passenger vehicles.
Vehicle Models Covered by the Law
The new bill encourages the purchase of new vehicles with an exemption from Special Consumption Tax in return for vehicles that are 25 years old or older that are scrapped. Within the scope of this incentive, vehicles with a local content ratio of 40% or more will be taken into consideration. If the bill becomes law, 6 models from 12 different brands will be included in the scope. These models include Togg T10X, Toyota CH-R, Hyundai Bayon, Hyundai i20, Hyundai i10, Ford Tourneo Custom, Ford E-Transit, Ford Transit, Fiat Fiorino, Fiat Egea Cross, Fiat Egea and VW Transporter.
History of Scrap Incentives in Turkey
The scrap incentive was first implemented in Turkey in 2003, and the second scrap incentive application was implemented on October 4, 2010. Then, the last incentive remained in effect in 2017, 2018 and 2019. According to the data of the Ministry of Environment, Urbanization and Climate Change, a total of 2012 vehicles were recycled in 2019 years with the incentive regulation implemented between 7 and 519.
Number of Vehicles Covered by the Incentive
The scrap incentive proposal submitted to the Turkish Grand National Assembly offers an important opportunity to owners of vehicles older than model year 2000. If the proposal is accepted, citizens will be able to scrap their old vehicles and become owners of zero-mileage vehicles without paying SCT. The regulation, which concerns vehicle owners over the age of 25, covers more than 3 million people and the incentive grants vehicle owners only one-time rights. This proposal aims to both reduce old vehicles in traffic and increase the prevalence of environmentally friendly and safe vehicles.
