Victoria Offering Subsidy To Get Regional Buyers Into New Cars
21 September 2022
The Victorian government is expanding a trial programme to provide financial assistance to teen drivers to trade their older model cars for safer, more up-to-date vehicles.
Furthermore, more young people in rural Victoria can now save money by trading in their old vehicles for safer, more modern models. The road minister, Ben Carroll, recently announced that the unsafe2safe trial would be expanded to include all regional Victoria. Until September 4, 2022, expressions of interest will be accepted.
Victorian Government Subsidy program phase, up to 150 drivers between 18 and 25 will be offered a $5,000 cash subsidy to assist them in upgrading from an unsafe older vehicle to a safer, newer one.
The Trial Program, “Unsafe2safe.”
The safety of your vehicle is critical in the event of a collision and may even help prevent one from occurring. However, many teen drivers do not have the financial means to purchase a newer, safer car. Unfortunately, young drivers are sometimes involved in serious traffic accidents. Although safety is the primary focus of the initiatives, a 2017 analysis by the Australian Automobile Association discovered that removing older vehicles from the nation’s roads and lowering the fleet’s average age by one year resulted in a one-year reduction in the fleet’s average age. This could “save up to 1377 lives and result in a $19.7 billion benefit in trauma and emission reduction over the next 20 years.”
According to the same study, lowering the average age of Australia’s car fleet by a single year could reduce road crashes by 5% due to safety technology like electronic stability control (ECS), which can avoid a skid.
We are launching a targeted study to encourage young people in rural Victoria to trade in their old, dangerous cars for newer, safer ones. The unsafe2safe project would provide up to 1,000 teen drivers with a $5000 subsidy to replace their old, perilous vehicle with a newer, safer one that meets the following requirements:
- Younger than ten years
- A four- or five-star used car safety rating or a five-star ANCAP rating with a timestamp no older than six years.
- Never has been listed as a repairable write-off on the Written-Off Vehicle Register (WOVR).
- The driver has a P-plate driving licence, and the replacement vehicle cannot be prohibited.
- With a purchase price less than an unknown value.
The trial application period is now open.
How does it work?
- An invitation letter entitles selected participants to a $5,000 subsidy towards purchasing a newer, safer vehicle.
- The participant takes their letter and an old, dangerous automobile to a participating dealer.
- The dealer validates the letter’s authenticity through the VicRoads partner site.
- If the asking price is more than $5000, the participant uses the subsidies and their own money to purchase an eligible replacement vehicle.
- The dealer arranges the old car to be destroyed by a scheme auto wrecker. The vehicle is totalled.
- The dealer claims the rebate by submitting the required paperwork through the VicRoads partner site.
The trial’s first phase began in February, with 50 participants and ten dealerships from Bendigo and Ballarat. We could directly coordinate with the participating dealers during the initial stage to determine what was successful and could be improved. In addition, we are currently working to increase the number of trial participants and dealerships across the state.
How Would The $5,000 Grant Work?
The government will not give the subsidy to the participants directly. Instead, when selling a qualified replacement car, the dealer gives the participant a $5000 discount off the drive-away price (including GST).
The dealer must obtain the old trade-in vehicle, which must then be deactivated and delivered to a scheme auto wrecker. Furthermore, the wrecker must provide a Certificate of Destruction stating that the trade-in vehicle has been destroyed or is being disassembled and will not be resold or re registered. When a participant purchases a newer, safer vehicle and scraps the old one, the dealer will use an application on the my VicRoads portal to submit a claim to VicRoads for reimbursement of the subsidy. The dealer must provide transaction information and the necessary paperwork (Certificate of Destruction, transfer form, evidence of sale, etc.).
Do you have an abandoned car that would be too costly to sell? Prestige Car Removal in Melbourne is the end of your search. To learn more about our services, call 1800 750 806.