NZ Clean Car Discount Scheme

Posted on Tuesday, 17 May 2022 by CarTakeBack

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Aotearoa New Zealand’s first Emissions Reduction Plan has been released, one item that caught our eye was the inclusion of a targeted vehicle scrappage scheme. In a bid to get more polluting, unsafe vehicles off our roads, $569 million has been made available for the scheme. The "Clean Car Discount" scheme will target low-income families to scrap their old cars in exchange for funding to buy a greener new or used vehicle. A pilot scheme will be rolled out for 2,500 households, before a full roll out in about two years' time.

How much will a rebate be in the scrappage scheme?

Rebates will be up to the value of $8,525. When eligible individuals scrap their car, rebates will be offered based on the type of vehicle they choose to replace it with, new cars will get a higher discount than used cars, and electric vehicles will get a higher discount than, PHEVs, hybrids and petrol or diesel cars. For non EVs, rebates will be based on the vehicles emissions.

How much is the Clean Car Discount for an Electric Vehicle?

The scheme gives eligible applicants a discount of $8,525 off a new EV and $3,450 off a used EV, when they scrap their old car.


More about the Clean Car Discount scheme

The Clean Car Discount encourages buyer demand for low-emission vehicles by providing rebates for zero and low-emission light vehicles, and requiring a fee be paid for high-emission vehicles, registered in New Zealand for the first time. The Clean Car Discount is based on CO2 emissions. Vehicles first registered after 1 April 2022 with zero or low-emissions may be eligible for a rebate and those with high-emissions incur a fee.

Clean Car Rebate


What vehicles are available on the Clean Car Discount scrappage scheme?

Vehicles that are available for the discount can be found on the Right Car website. Eligible vehicles are listed and can be sorted by the make and model, as well as by which cars are the safest, cleanest and most fuel efficient too.

How has the scheme been received by the industry?

The announcement of the scrappage scheme has faced some criticism, stating that the scheme doesn't go far enough. The Motor Trade Association have spoken out with their views.

MTA Advocacy Manager, Greig Epps said;

“We are glad the Government has seen the benefit of a scrappage scheme, which is an important step in the transition of the national fleet to protect future generations. We support the Government’s goals and strongly agree that the transport sector needs to address the harmful emissions it creates.

“It’s good to see that lower and middle income households will be supported in changing to zero emission vehicles.

“But why stop there?

“Why not make the scheme available to all New Zealanders? And while we acknowledge that electric vehicles have a significant part to play in reaching our greenhouse gas targets, so too do low-emitting internal combustion engine (ICE) vehicles. For some Kiwis, they are a more affordable option, even with Government support.

“ICE vehicles are going to be around for years to come, even if we weed out the clunkers. So we need to make sure they are part of the plan. Because moving to a low-emitting ICE vehicle is also a positive step people can take.”

At CarTakeBack, as a company providing a scrap car recycling service in New Zealand, we look forward to seeing how the scheme develops and how the pilot scheme is received by locals.

If you still have questions, you can find all of the answers in the following categories:

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