China's Auto Trade-In to End On June 30, 2010

China's auto trade-in policy, having strong appeal, is an important means of stimulating domestic demand this year. Officials with the Ministry of Commerce of China pointed out that, with the increase in the trade-in subsidy, earnings from the trade-in have been slightly higher than that from the trading of used autos.

According to some industrial insiders, whether applying for the trade-in subsidy, or the subsidy for auto scrapping and replacement as stipulated in the Announcement No. 20, the auto owner should turn to the trade-in service department located in the auto registered area before June 30, 2010. In addition, the owners can now enjoy both the trade-in subsidy and the cut tax rate of 7.5% on buying passenger cars no more than 1.6 liters in displacement. By referring to the date on purchase invoice, local commercial authorities can determine whether an owner can enjoy both the subsidy and the tax cut.