I heard that the policy on car going to the countryside will continue for another year. Wu Tingyan, sales consultant of Sanya Branch of Wuling Automobile Haikou Yuanyuan Sales Company (hereinafter referred to as “Sanya Sourceâ€) has involuntarily turned up. "That's great!" said Wu Tingyan with a smile. Since the implementation of the purchase tax preferential policy, the sales volume of Sanya's source minibuses has increased by 50%. When his salary is highest, he can get more than 3,000 yuan.
However, as sales increased, customers complained more and more. “With less than 30% of the 200 or so clients I handle, I received subsidy, and 70% or more did not get subsidy. This is because of the hukou problem,†said Wu Tingyan, who can’t do anything in the local area.
The CBN reporter found that the cross-provincial car purchase subsidy that is generated by the location of the account still exists, and some provinces in the country still refuse to subsidize inter-provincial car purchases. The trade-in replacement did not start in some provinces.
"less than 30% of the subsidies received"
Haikou Yuanyuan Sales Company opened two Wuling mini-vehicle shops in Sanya. The old shop is located next to the East Bank village committee, adjacent to Qingling maintenance and Changan mini-vehicle. The newly opened store is located next to the National High School of Yingbin Avenue in Sanya City. It is a standard store with a large floor space and glass showroom.
Since the new store has just opened, most customers will still go to the old shop to find Wu Tingyan to buy a car. Zeng Qiyuan, who bought a car through Wu Tingyan in April this year, became the first customer in Sanya City to receive subsidies for cars to the countryside.
"Zeng Qiyuan bought a car for us here in April this year. After buying the car, he couldn't get a subsidy and complained to us." Wu Tingyan recalled. After the car-to-country policy was announced in March this year, Sanya Yuanyuan will hang billboards with subsidies for car purchases at the front of the store, and at the same time vigorously promote customers. However, the Sanya Finance Bureau did not receive any documents at that time. He once ate a “closed door†at the Finance Bureau after his car was purchased. “Customers said we had lied to him and brought people from the Finance Bureau. At that time, I was very emotional.â€
After this incident, the Finance Bureau requested Sanya Source to remove the billboards at the entrance. Until late May, the Finance Bureau informed Zeng Qiyuan that the documents had been issued and that Zeng Qiyuan had purchased more than 4,900 yuan in subsidies from Wuling Hongtu. Zeng Zhiyuan also became the first customer in Sanya to receive a subsidy for the car to the countryside.
Turning the blue ballpoint pen into a handwritten sales record, Wu Tingyan found only more than 50 records of subsidy on more than 230 customer lists. “Most of the clients did not receive subsidies because they were not in rural areas and the account was not in Hainan.†In order to get subsidies, many customers used various methods, but the results were not satisfactory.
On December 10, Mr. Li, who was doing air-conditioning sales and maintenance business in Sanya, told CBN reporter that in order to get subsidies, he borrowed his friend's agricultural account to buy a car. The car is hung under the name of a friend and will be transferred to itself two years after preparation. "My friend is a bit worried, but I told him that he had bought a strong insurance. If something happened to the insurance company, there was nothing to worry about," said Mr. Li. This unconformity has become a tacit “workaround†in many places.
Hong Changan, who does business in the Mainland to Sanya, does not have such good luck as Mr. Li. He cannot buy a car in Sanya and enjoys the local subsidy for the car to the countryside. If you are looking for a friend to borrow Lingshui's account book, you can't get a license for Sanya.
In addition, not all people are willing to lend their account books to friends. "Friends are also very difficult. If you run into a crash and run away, the public security officer will only find the owner of the car. What should you do when you arrive?" said Hong Chang-an.
CBN reporters also received similar information when they visited the only Changan minicar store in Sanya. The store’s sales consultant stated that due to non-agricultural hukou relationships with foreigners, most customers did not receive subsidies.
Cross-provincial subsidies and trade-in problems
In Jiangsu Province's implementation plan of "Automobile and Motorcycle Going to the Countryside" issued on March 27 this year, there are notes on the subsidy issuance: "The farmers of this province scrapped three-wheeled vehicles or low-speed trucks in Jiangsu Province and replaced them with light ones. For trucks, light-duty trucks enjoying subsidy are allowed to purchase one vehicle per household.†“From March 1 to December 31, 2009, farmers in this province purchased mini-buses with a capacity of 1.3 liters or less in Jiangsu Province. Mini passenger cars are limited to one purchase per household."
This led to the situation that the Jiangsu agricultural accounts that bought cars in other provinces could not return to Jiangsu to apply for subsidies. Before July of this year, most cities across the country had the same restrictions. But these restrictions are slowly letting go. As of the date of the press release, Anhui, Sichuan, Zhejiang, and Jiangxi Provincial Departments of Finance respectively told CBN reporters that people in the province can apply for subsidies at home locations in other provinces to buy cars, and “have no difference†from the province’s car buyers in the province. However, there are still some "thresholds" in Hebei.
A staff member from the Economic Development Department of the Hebei Provincial Department of Finance stated to the CBN reporter that the people in the province had to buy a car in other provinces and must go back to Hebei to “submit a licence and other formalities for subsidyâ€, and there is still no subsidy if they do not return to the provincial office.
The problem of trade-in is even more severe. Although the trade-in of old cars and subsidies for car-to-country purchases have been announced at the same time, the micro-vehicle replacement technology in Sanya City has so far been used. In particular, subsidies for the replacement of new vehicles by scrapped mini-vehicles and tricycles have not yet started.
Sanya City Vehicle Administration staff said that scrap-related matters were handed over to Sanya Jiayue Recycling Resources Recycling Co., Ltd., the designated vehicle recycling company for scrapped vehicles in Sanya. The company’s general manager, Weng Liangzhong, told CBN reporters that at the moment only large trucks have a clear document for scrapping and renewing subsidy. Mini vans, minivans and tricycles “have nothing to do with itâ€, so scrapping points do not know what to do.
According to data from the Bureau of Commerce of Huangshi City, Hubei Province, since the start of car replacement work in late September of this year, only three owners have received declarations. The owners still have to reflect that the amount of subsidies is small and the procedures are complicated. In addition, scrapping and trade-in are still difficult to implement. On the one hand, car dealers are reluctant to accept used cars, and consumers are too discouraged from selling too much money. Instead, they sell cars to rural areas without licenses and annual inspections.
"If the old trade-in can be implemented well, our sales will be different again." Wu Tingyan looked forward to saying that the latest adjustment of the car to the countryside policy will be used to renew the subsidy amount to up to 18,000 yuan. Sanya old trucks and tricycles are particularly common.
According to Cui Dongshu, an analyst at CUCH, the trade-in must be in line with the market, act according to the laws of the market, and benefit consumers, so that policies can play a role.
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