Residents Scrapping Yellow Labeled Vehicles to Get Subsidies Earlier
Shenzhen started to offer subsidies to residents who scrap their highly polluting and yellow labeled vehicles which usually takes up to 60 working days to be received. Now those residents applying must submit their driver’s license and vehicle registration can now receive the subsidies 25 days earlier after submitting their application.
The 5,000 to 18,000 yuan subsidy payments starting in June when drivers chose to scrap their vehicles a year earlier than legally required. Those who transferred from Shenzhen to other cities received a subsidy of 3,000 yuan. Owners of more than 3,000 vehicles rushed to apply to scrap their vehicles, but some are not convinced at the offer.
A resident driver who have been driving a yellow labeled truck for several years said that if he applied to scrap his vehicle he will get a 10,000 yuan subsidy, but if he sells his vehicle in the second hand market he can get at least 20,000 yuan. Vehicles that are bought before 1999 are considered yellow labeled. Scrapping yellow labeled vehicles is becoming a trend and will become mandatory and the subsidy policy will end in May 2014 then a restriction of yellow labeled vehicles will be implemented in 2015.