Quite a tangible support for novice drivers has now become Government program titled "The First Car". With its help, citizens who previously did not have a vehicle can use the help of the Government of the Russian Federation when buying their first car in their life. In this article, you will learn what this program is, what are the conditions for the first car program in 2019 and its benefits, which car can be purchased under the program, and how to participate in it.
What changes took place in the First Car program in 2019
Starting from January 1, 2018-2019, all car owners who bought a car under the First Car state program were exempted from paying personal income tax at a rate of 13%. In addition, the maximum possible cost of the purchased car was increased to 1.5 million rubles.
What is the state program “The First Car”
The state program “The First Car” was developed and launched on July 19, 2017. In total, 7.5 billion rubles were allocated from the federal budget for its implementation (the money went to provide financial assistance to domestic vehicle manufacturers).
The essence of the program is that novice drivers get the opportunity to buy their first car on favorable terms. Since buying a car is expensive and requires a significant investment, the vast majority of drivers are forced to take out a car loan as soon as they have a stable source of income.
As a rule, you have to buy what you have enough money for - usually a foreign car that was in use is chosen. Such a machine will soon require repairs and new costs, and such purchases are not profitable. Russian car industry. Therefore, the First Car program is designed to stimulate demand for Russian cars by offering customers a discount on their purchase. The project is aimed at young people who have just received driver license. So, the tasks of the program are as follows:
- development of service centers domestic cars;
- providing support to the Russian automotive industry;
- providing opportunities for citizens low level earnings to buy a personal car.
Benefits of the First Car program
An additional advantage of participating in the First Car program is the possibility of simultaneously applying for state subsidies for loans for domestic cars. Support in this moment is 6.7% of the loan interest rate. If, for example, the bank has set a loan rate of 18%, the car buyer will pay only 11.3%, and the rest of the money will go to a banking institution from the federal budget.
You can also use the offers of car manufacturers at the same time. For example, Nissan offers participation in the Prime Numbers program, which individual brands sold at a reduced rate.
Who can become a member of the First Car program
Important! Despite the fact that it was originally supposed to limit the age of the program participant to 30 years, the requirement was never made - the age is not limited to this day.
Before collecting documents to apply for participation in the state program, you need to check yourself for compliance with the conditions:
- the applicant must be a Russian citizen;
- the applicant must have a driver's license;
- the participant of the program must not own vehicles;
- the purchased car must be the first in the life of the driver.
Terms of the first car program in 2019
To become the owner of a car purchased on preferential terms under the First Car state program, you must meet the following requirements:
| Condition of participation in the program | A comment |
| Discount when buying a car can not exceed 10% | When buying a car on borrowed funds, a 10% discount can be made when paying the down payment (then the discount will be 10% of the total cost of the vehicle). When buying a car on credit, the terms of which do not require an advance payment, you can get a discount by receiving compensation for the insurance premium. When purchasing a vehicle with your own funds without attracting borrowed money, it is impossible to get a discount. However, many decided to do the following - they issued a loan for minimum term and made up to 95% of the cost of the car in advance, using the benefit. |
| Maximum term credit validity - 3 years | The loan agreement must be signed no later than July 1, 2017. If the loan is for longer term, the discount is not available. |
| Ultimately possible price cars - 1.5 million rubles | When the program was just launched, a car could be bought for a maximum of 800,000 rubles. |
| The maximum loan rate is 11.3% per annum | Depending on the brand of the car and the manufacturer, the rate may be set by banks in different ways, but if you agree to a rate of more than 11.3%, the discount will not be provided. |
| Machine Compliance with Program Requirements | Max weight TS - 3.5 tons. The year of manufacture of the car is 2017 or 2019. |
What cars can be purchased under the “First Car” program
Not every car you like can be bought on credit on favorable terms. Below is a list of available vehicles:
| Available cars V standard equipment | Available cars in various configurations |
| Ford Kuga Volkswagen Tiguan(I generation) Mazda CX-5 | UAZ Lada (Granta, Vesta, Largus) Brilliance H230, Geely Emgrand 7 etc. Chinese brands plant "Derways" Mazda 6 Toyota (RAV4 and Camry) Datsun (on-DO version of Access 2017, mi-DO version of Access 2017) Nissan (Almera, Terrano, Qashqai, Sentra) Renault (Logan, Sandero Stepway and Sandero, Kaptur, Duster) Hyundai (Creta and Solaris) Skoda (Yeti, Octavia and Rapid) Volkswagen (Jetta and Polo) Ford (Fiesta, Focus, EcoSport, Mondeo) Kia (Rio, Cerato or Sorento) |
First car program conditions: example
Ivanov P.P. buys a car for the first time and recently got a driver's license. He chose Kia Cerato(Comfort/1.6/6MT/) behind 974 900 rubles. He signed a loan agreement with Rusfinance Bank for 3 years, bid - 6,7% . The advance payment was 20% the cost of the car (including CASCO and life insurance - 179 480 rubles). Taking advantage of the preferential terms of the First Car program, Ivanov was able to reduce monthly payment before 24 883 rubles.
The First Car program is the forerunner of other car loan support systems launched in 2009. It started in 2017 and there are prerequisites that after 2019 it will continue its development.
To overcome the crisis in the bank lending sector and some industries in Russia, programs of state subsidies for various targeted loans were developed and put into effect.
Among other things, state support extends to the purchase of cars at the expense of borrowed funds, in particular, under the First Car program.
This program has a certain vector, and in order to understand its further strategy, it is necessary to consider all stages of development.
The emergence of state support for car loans in Russia
The state-supported car loan program was developed in 2009.
Its main content:
- providing benefits to borrowers who purchase cars on credit domestic production or foreign cars assembled in Russia;
- banks that reduce interest rates under the program receive compensation in the form of government subsidies.
The purpose of the implementation is to stimulate the demand of the Russian consumer for cars produced in the country, which, in turn, causes the stabilization and growth of production at the enterprises of the automotive industry.
The origin of the state program “The First Car”
Since 2015 operated updated version state subsidies for car loans, under which credit institutions were subsidized at the expense of budgetary funds up to 2/3 of the key rate set by the Central Bank.
The specific implementation has demonstrated both the effectiveness of the measures and the need to make some changes to the state program.
There is also a possibility that in the future the program will exist in one form or another, because this is in the form of separate projects and the existing program for the development of the industry and its support, which is being developed until 2025.
The program turned out to be ambiguous, but really interesting. Thanks, among other things, to the excitement of 2018, it was extended until 2020 inclusive.
We monitor all events and changes in the existing program and promptly (monthly) set out in.
Salon MAS Motors actively cooperates with many credit organizations in Russia (more than three dozen partner banks). Thanks to borrowed funds, significantly more the lineup cars of foreign and domestic production than only with their own accumulated money.
Potential customers are offered not only standard loan products (consumer and car loans), but also trade-in programs, installments, as well as government subsidies.
Conditions of the program "First car"
The new initiative to increase demand for new cars is built on the basis of existing state support programs. According to preliminary data, the state is ready to allocate up to 7.5 billion rubles. to support car loans. The following are only General requirements without taking into account any specific loan products of individual banks that will issue loans to the population.
Requirements for a loaned car- The cost of the car cannot exceed 1 million rubles. (the amount corresponds to updated settings a general program of state subsidies for the purchase of new cars);
- Only new cars are credited (the year of manufacture must be at least 2016).
- The car must be assembled in Russia.
- The program presents only mandatory requirement– the purchased car must be the first from the owner. This fact will be checked through the traffic police (whether the applicant has previously issued a car for himself) and through the Credit History Bureau (whether he has issued a car loan for himself);
- There are no restrictions on age and income;
- State support applies only to citizens of the Russian Federation.
- The buyer must have driver's license.
- The minimum down payment is 20%; it is possible without a down payment, but then the right to a discount on it is lost;
- The term of the loan cannot exceed 36 months (3 years);
- The bank's rate on a car loan should not exceed 18% per annum.
