Popular car: those who resell it before will return the discount – 06/18/2023 – Market

Drivers who buy a car through the Lula government’s new incentive program with the intention of reselling the vehicle must pay attention to the rules. There is a deadline for negotiation.

The owner of a vehicle purchased through the program will only be able to sell the asset six months after the acquisition. The determination is contained in article 11 of Provisional Measure 1,175: “In the operation of reselling a sustainable vehicle, before the period of six months has elapsed from the date of acquisition from the automaker or concessionaire, the payment of the sponsored discount granted must be made”.

Whoever sells the car before this deadline must collect the equivalent of the government-sponsored discount through the GRU (Union Collection Guide). That is, if you buy a Fiat Argo 1.0, for example, with a R$6,000 discount, and sell it five months later, you will have to pay the federal coffers those R$6,000.

If you do not pay the GRU, the vehicle owner will not be able to make the transfer to the buyer. According to the Mdic (Ministry of Development, Industry, Commerce and Services), the rule is similar to that applied to PCDs (disabled people) and taxi drivers who purchase vehicles with tax exemption and decide to sell them before what is permitted by law —with the difference that, in these cases, the grace period is two years.

The plan that seeks to reduce the price of popular cars, launched earlier this month, offers sponsored discounts ranging from R$2,000 to R$8,000, and may reach higher values ​​at the discretion of factories and dealerships with additional discounts. The MP determines that the discount sponsored by the government is registered in a prominent way as unconditional in the invoice for the purchase of the vehicle.

Nine automakers have already joined the program with discounted car options: Renault, Volks, Toyota, Hyundai, Nissan, Honda, GM, Fiat and Peugeot. There are 266 versions of 32 models available to consumers.

Lower price, greater energy efficiency and greater industrial density (capacity to generate jobs and growth in the surroundings) were the three criteria taken into account by the federal government to define the discount ranges for cars. The higher the score on these requirements, the greater the applicable discount.

This amount is deducted at the time of purchase from the dealership and will be covered by the automaker, which will revert the amount as a tax credit. The target is cars 0 km.

The car price reduction program and incentive to renew the fleet of trucks and buses was created by Mdic and the Ministry of Finance to end in the short term.

The government’s plan is to alleviate the crisis in the automotive sector, which accounts for 20% of the manufacturing industry’s GDP and has 50% of its installed capacity idle. When available resources are exhausted, the program ends.

Automakers have been struggling to reduce their inventories. During the pandemic, companies faced a lack of raw materials and quarantines due to Covid-19 outbreaks. Then, the drop in demand thanks to interest rates that make loans more expensive and inflation that reduces the purchasing power of Brazilians.

In his speech at the closing of an event at Anfavea (National Association of Automotive Vehicle Manufacturers), this week, the vice-president, Geraldo Alckmin, stated that there is great interest from consumers in the popular car program. “The response has been very good, demand at dealerships has grown a lot. We are very optimistic about the work,” he said.

Alckmin, who is also Minister of Development, Industry, Commerce and Services, has previously stated that the federal government is waiting for a drop in interest rates in the coming months, so that “credit becomes more accessible”.

The sector already calculates that the measure, expected to last four months, can be terminated with just one month of validity, as it reaches the established quota of R$ 500 million. In all, the resources requested by automakers that joined the plan already add up to R$ 300 million – 60% of the ceiling available for this modality. Despite the program’s success, an extension is not in the Lula government’s plans.

ASK DOUBTS ABOUT PURCHASING A CAR THROUGH THE LULA PROGRAM

What is the discount amount?

• For cars, there are seven discount ranges, from R$ 2,000 to R$ 8,000. Automakers can also apply additional discounts
• For trucks and buses, discounts range from R$33,600 to R$99,400

Is the program only for companies or can individuals also participate?

The program is for both audiences, but individuals have exclusivity in the first 15 days, extendable for another 15

What is the criteria for choosing the vehicles that will have a discount?

• For cars, there were three criteria: lowest price (up to R$ 120,000); greater energy efficiency (less polluting cars); and industrial density (greater ability to generate employment and income in the surrounding area)
• In the case of trucks, semi-light, light, medium, semi-heavy and heavy vehicles were included, with different discount levels. For buses, discounts vary according to passenger capacity

Who will calculate the discounts? How will the criteria be applied?

• The calculations have already been made by the government, based on market information and indicators used by the automotive industry.
• In the case of cars, the discount volume is proportional to the score that the model achieved in the environmental, social and industrial criteria. The higher the score, the greater the discount
• In the case of trucks and buses, the biggest discounts are for the most expensive vehicles

How long will the discounts be available?

For as long as the resources allocated to the program last:

• BRL 500 million for cars
• BRL 700 million for trucks
• BRL 300 million for buses

Does the measure favor less polluting vehicles?

• Yes. In the case of cars, models produced since the end of 2022 are at least 12% more energy efficient than those manufactured previously
• New buses and trucks emit up to 98% less particulate matter than models over 20 years old

Will cheaper cars be able to lose mandatory equipment, such as safety ones?

There will be no reduction in technological or security content, according to the Ministry of Development, Industry, Commerce and Services

Does the measurement apply to used models?

• No. The program is exclusive to zero-kilometer cars, buses and trucks
• Eventually, says the federal government, the program may also have repercussions on the used car market

How many automakers have already joined the program and started discounts on vehicle sales? What cars are being sold? Is it possible to have this monitoring?

Nine automakers joined until June 14, 2023

What are the discounted car models?

When did the exclusive 15 days for sale to individuals begin to count?

• The deadline begins to run on the date of publication of the ordinance, June 6. Therefore, the exclusivity for individuals runs until June 21

How will the discounts be implemented for consumers and automakers?

• The discount will be given directly to the consumer when he buys the vehicle.
• For automakers, this amount will become a tax credit, with which it will be able to pay or deduct future taxes.

To buy new trucks and buses is it mandatory to remove old vehicles from circulation?

• Yes. Those interested in participating in the program must first hand over a licensed truck or bus over 20 years old for scrap.
• With this, the owner will receive a certificate that will entitle him to purchase a vehicle, in the same category, with the discount defined in the program.

Source: Ministry of Development, Industry, Commerce and Services