Do you own an old car that’s pretty much a rusty pile of scrap metal? Now you can get money to scrap it for real. We’ll tell you what this is about in our blog this week.
Money to scrap your old car
If you scrap your old car and purchase a new car, an electric bicycle, or public transportation tickets the government gives you between 1 000 and 2 000 euros as a reward. Old here means a car that is more than ten years old. Its initial registration date needs to be before December 31, 2010.
The amount you receive depends on what you purchase to replace your old car.
The reward is
- 1 000 € when you purchase a new car with CO2 emissions below 120 g/km.
- 2 000 € if you purchase a fully electric car or a car that runs completely or partially on ethanol or natural gas.
- 2 000 € for hybrid cars with CO2 emissions below 95 g/km
- max. 1 000 € for electric bikes or public transportation tickets.
Only private individuals can take advantage of this program. And it only applies to passenger cars. Vans and other bigger vehicles don’t qualify. Also, the new car needs to be a passenger car.
The program runs between Dec 1, 2020, and December 31, 2021, or until the 8 million euros the government reserved for this program runs out.
If you are planning on buying a brand new car, you have to both order a new car and scrap the old one within this timeframe. But the dealership can deliver the new car to you after Dec 31, 2021, as long as you is register it by March 31, 2022.
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What kind of a car qualifies for the reward?
The car needs to be more than 10 years old.
You need to have owned or been the registered holder of the car at least for a year before scraping it. The car should be in Traficom’s registers as being in use at the time of scraping. It also has to have been similarly in use at least for a day in the year prior to scraping. So, if you are scrapping the car in December 2020, the car has to have been in use at least for a day in 2019 in addition to being in use at the time of scraping. If you are scrapping your car in 2021, it needs to have been in use at least for a day in 2020.
The car does not need to have a valid inspection at the time of scraping. Nor does it have to fit to be driven. But it needs to be registered to be in use.
If your car is registered abroad or in Åland, it doesn’t qualify for this program.
If you are unsure of whether your car qualifies for this program you can call Trafi to find out. The phone number to their customer service is 029 534 5100 (weekdays from 8 am to 4.15 pm) and 029 534 5125 (weekdays from 8 am to 6 pm).
So, what do I do?
You can scrap your car free of charge at Kuusankoski Recycling. You can take your car in yourself or you can ask them to come and take it.
They will come and pick up your car, take it to be scrapped, and notify the Trafi and your insurance company of the fact.
You can call them to come and pick your car or you can schedule a pick up online. Be prepared to prove that you are who you say you are and that you own the car. They will come within the next 5-6 working days and take it away. You will receive the official notification of scrapping within the next two weeks.
More information on pickups from Kuusankoski Recycling (in Finnish).
Once you have scrapped the car and the authorities have been notified, you can apply for the reward. You can also authorize the car dealership to apply it on your behalf if you are buying a new car.
Here are Traficom’s instructions for when you are planning on using the rewards to purchase
What’s the point of this money-to-scrap-it scheme?
This program is based on a very recent change in the law. In October of this year, the government proposed that consumers should get a monetary reward for scrapping their old cars if they switch to a more environmentally friendly mode of transportation.
The intention is to increase the proportion of low- or no-emission cars in Finland and to encourage cycling and the use of public transportation.
Due to COVID-19, the natural turn-around from older to new cars in Finland has slowed down. During the early part of this year, consumers registered significantly fewer cars (-19 %) than in normal years. Thus the government is looking to speed up this progress with this campaign.
This is not the first time Finland has had a similar campaign. The last one ended in August 2018. During that campaign, 6 677 cars were scrapped. And about 90 % of the money reserved for the program was used.
These cars were 17 years old on average. Their average CO2 emissions were 170 g/km while the average CO2 emissions for the cars bought to replace them were 100 g/km. The absolute effect on emissions, however, was difficult to quantify since it is not, for example, possible to know whether consumers would have chosen a low emission vehicle irrespective of the program.
The government reserved 8 million euros for this program. The president signed it into law on November 27, 2020.
More about buying, owning, and driving a car in Finland
We at Finnwards have produced a self-guided online course about buying, owning, and driving a car in Finland.
In this Four Wheels in Finland course, we go over, for example, consumer protections when buying a car. We also cover the legal obligations car owners in Finland have. We also talk about winter driving and other issues specific to driving in Finland.
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