Wen | Shu Shu

Along with the resumption of work and production in Shanghai, the car subsidy policy in Shanghai is also coming, with the focus on the following three items:

1. For passenger cars with a displacement of 2.0 liters or less and with a unit price (excluding value-added tax) not exceeding 300,000 yuan, which are purchased between June 1, 2022, and December 31, 2022, the vehicle purchase tax shall be reduced by half.

2. Before December 31, 2022, for personal consumers who scrap or transfer their small passenger cars registered in Shanghai and meet the relevant standards and purchase pure electric vehicles, a financial subsidy of 10,000 yuan will be granted for each vehicle.

3. Jiading District in Shanghai has issued the Notice on “Several Industry Support Policies to Assist Enterprises in Overcoming Difficulties, Promote Consumption and Boost Employment,” which stated that in terms of automobile consumption, relevant automobile manufacturers are encouraged to conduct promotional activities that are beneficial to the people in the district. Furthermore, individual consumers are encouraged to purchase new energy vehicles and fuel vehicles and to register their vehicles in Shanghai. For those whose car price is less than or equal to 150,000 yuan, a subsidy of 10,000 yuan will be granted. And for those whose car price is more than 150,000 yuan, a subsidy of 20,000 yuan will be granted.

No one can resist the temptation of subsidies, especially when they are given in tens of thousands of yuan.

Imagine for a moment, according to the subsidy policy, buying a low-priced car like a Polo not only comes with a subsidy of 10,000 yuan but also enjoys a half reduction in vehicle purchase tax, and it might even end up costing only 90,000 yuan; pure electric vehicles are even more cost-effective, with free license plates and purchase tax exemption, etc. Besides, various manufacturers have different resumption subsidies posters, making the journey of buying a car look like a breeze.

But is the reality really like that?

To find out the truth, the day before yesterday, we went to Jiading from Pudong New Area, spent an entire afternoon as a customer visiting BYD, WEY, Geely, Ora, WM Motor, and SAIC Volkswagen’s 4S stores, and finally realized.

BYD

Although it was the first store we visited, after visiting all the 4S stores, I would like to call this BYD 4S store “the most high-end.”

The moment you scan the venue’s code and walk in, everyone says hello to you at the same time, and the receptionist is a beautiful young lady with neat attire who will take your umbrella and place it in the storage area while offering you a bottle of Sprite. Following that is a gentle and professional explanation, which gave me the feeling that it was no less than the service experience I had previously received when I went to a few luxury brand 4S stores as a media representative.

As for the discount situation, only four models of vehicles are displayed in the large store, the flagship model- Tang (05), the eye-catching Dolphin is placed behind the Tang, and on the other side are the Song Plus and Song Plus DM-i models.In terms of the popular car models “Destroyer 05” and “Dolphin”, the Dolphin is an all-electric model and is exempt from purchase tax. However, if the car owner does not have a Shanghai license plate fuel car and is purchasing a car for the first time, they cannot enjoy the subsidy policy mentioned in the second point above, which is disappointing.

As a car model that meets the policy of “Green Plate” in Shanghai, the Destroyer 05 is exempt from purchase tax, so it was thought to be eligible for the subsidy policy in Jiading District. However, after understanding the details, consumers who can enjoy the Jiading policy must meet at least one of the following requirements: they must be registered in Jiading or hold a valid Shanghai residence permit with their address in Jiading, or they must be employees of government agencies, enterprises or public institutions in Jiading and pay social security in Jiading. Unfortunately, I did not meet any of these conditions.

Aside from consumers, manufacturers and car brands are also subject to restrictions. They must be car manufacturers with their headquarters, sales headquarters or production base in Jiading, and they must have an interest in carrying out relevant promotional activities in Jiading. This statement about having an interest seems rather ambiguous, but after contacting several car dealerships, only SAIC Volkswagen indicated that they met the corporate standard.

Based on my actual situation, my registration is not in Jiading, and I don’t have an enterprise social security residence permit in Jiading. I have never purchased a car before in Shanghai and don’t have a Shanghai license plate fuel car that can be exchanged. The BYD 4S dealership I visited also indicated that there were no other cash discounts available, so I had to buy the car at full price.

The dealership mentioned that the purchase would come with floor mats, film, and first maintenance service. It takes about three months to pick up the Dolphin and Destroyer 05 models, and even longer for the Song PLUS series.

Regarding other fees, interest-free loan policies come with a certain financial service fee depending on the loan amount. For the Dolphin, as an all-electric car model, you can choose not to install a charging station based on the conditions of public charging piles near your home. However, for the Destroyer 05, a charging station must be installed before the car can be purchased and registered. Depending on the car model purchased, the charging station can be bought or gifted for 2000 yuan.

Regarding the car model, the sales representative clearly stated that the lowest configuration for the Destroyer 05 model is unavailable, meaning there is no availability even with back orders.

After learning that I came from Pudong New Area, the sales representative recommended online ordering and promised to help me with the delivery procedures, demonstrating great customer service.

EulerUnlike other stores, ora is the only one that asks me to fill out a form as soon as I enter, which includes my name, phone number, and address. At first, I thought it was because of epidemic prevention requirements, but later found out that it was actually for collecting information, because I received a greeting text message from a salesperson shortly after leaving. Other 4S stores do not have this process, and it is indeed intentional.

A ballet cat is placed in the center of the store, with good cats and good cat GT versions on the left and right, respectively.

Previously, I thought the good cat was good-looking enough, but after actually entering the store, the ballet cat stole the show and I couldn’t take my eyes off it. I can guarantee that no girl can resist a ballet cat, whoever sees it would know. The salesperson proudly introduced it as the only one in Shanghai at present.

Since ora only has pure electric vehicle models, the halved purchase tax policy is not considered, and I cannot enjoy the subsidy policy in Jiading District. The manufacturer and the 4S store said that there are no other discounts for good cats and good cat GT, but the ballet cat is still in the pre-sale stage, and now only requires a deposit of 520 yuan to enjoy some pre-sale gifts, worth about a thousand yuan.

I was interested in the ballet cat and made detailed inquiries. The salesperson said that the configuration is currently unknown during the pre-sale stage, but it can be confirmed that the car model has four gears. As for the cost, apart from waiting for the official guidance price, there is a financial interest-free policy for loans, but a 3% financial service fee must be paid based on the loan amount, in addition to insurance fees. If you don’t have a charging station, there is an affiliate fee of about 3,000 yuan, which is mainly aimed at green license plate policies, and a registration fee of 2,000 yuan.

The purchase of good cats and good cat GT is similar to that of the ballet cat. Good cats need to wait for three months for purchase, while good cat GT is in stock. For the ballet cat, the specific situation needs to wait for its market launch. I roughly calculated that if I choose a medium-sized car model according to the current pre-sale price of the ballet cat, the total cost would be about 210,000 yuan.

WM Motor

This WM Motor 4S store is sandwiched between BYD and ora, and unlike the official attitude of the two, the salesperson opened the “heart-to-heart” mode as soon as I entered the store.

When I expressed that I did not know much about WM Motor models, the enthusiasm of the salesperson almost reached its peak. There are only two models in the store, the E.5 sedan and the WM Motor EX5-Z. I mainly got to know the preferential policies for the E.5.

It must be admitted that, if only considering the preferential policies for pure electric vehicles, WM Motor has the greatest discount intensity. The sales representative revealed that, currently, the purchase of the WM Motor E.5 comes with a free charging pile and installation, and the manufacturer still offers a subsidy of over 20,000 yuan for resuming work and production. In terms of financial policies, the minimum down payment can be as low as 38,000 yuan, and customers can enjoy a zero-interest financial policy while only paying a 2,000 yuan financial service fee.

To impress me, the sales representative even used a calculator to calculate the actual price that I would pay to buy the E.5 Intelligence Travel. The official guide price is 190,100 yuan, but the sales representative claimed that the real price would only be 138,000 yuan, which includes all fees and can be completed within 10-15 days from placing the order to receiving the delivery.

To be honest, even when I was leaving the store, I still hadn’t figured out how the discount policies worked. However, I do have a genuine need for a car and the practical preferential policies did manage to impress me.

WEY

As a high-end brand of Great Wall Motors, the WEY 4S store has a particularly lively atmosphere. As soon as I walked in, I saw a sales representative using a support stand to do a live stream. The first question that the sales representative asked me was, “Would you like some coffee or other drinks?” This increased my good impression of the sales representative.

The store is mainly divided into three areas. In the front area at the entrance, there are various versions of the WEY brand’s Mocha, Latte, and Macchiato hybrid models. In another area, there are the Tank 300 off-road and city models.

The WEY 4S store claimed that it is not eligible for the subsidy policy in Jiading District. As for the Mocha and Tank 300 gasoline models, they enjoy a 50% reduction in purchase tax. The Latte, although a light hybrid, does not qualify for the green license plate policy in Shanghai but can still enjoy the same 50% purchase tax reduction policy. The Macchiato is a pure electric vehicle that qualifies for the green license plate policy. Other than the guide price, the only cost customers need to consider is the charging pile fee. For the base version of the Latte that doesn’t come with a free charging pile, customers need to pay an additional installation fee of 1,500 yuan, but the high-end version comes with a free charging pile.

The vehicle that I was most interested in was actually the Tank 300. At this 4S store, it was obvious that the Tank 300 off-road version was not available and the wait time for it is about 4-6 months. However, the sales representative guaranteed that I could still receive my Tank 300 before the end of this year if I purchase it while the purchase tax policy is still valid.

# SAIC Volkswagen

Compared to other dealerships, the SAIC Volkswagen 4S dealership in Jiading appears to be a bit plain, but the saleswoman’s sincerity surpasses that of WEY, and the discounts on car models are the most tempting.

To be honest, I’ve been paying attention to the Bora L and the Tayron X for a while now because I think they are economically priced and come with green license plates. However, the SAIC Volkswagen dealership only displayed one gasoline version of the car, with a large “special discount” sign on it.

When I mentioned the Tayron X, the saleswoman initially thought I was asking about the T-Cross L. She said that due to logistics reasons, the dealership currently has no test cars on hand, and even if I wanted to order one, there is currently only one car in Shanghai. Furthermore, the Tayron X doesn’t qualify for Shanghai’s green license plate policy or the half-price purchase tax policy.

When we talked about the Bora L and the Tayron X, the saleswoman became more enthusiastic. I found out that the reason the SAIC Volkswagen dealership appears so plain is mainly because of transportation delays, as the cars are there but can’t currently enter Shanghai. This has led to the dealership having mostly early models on display.

As for discount policies, just like the previous dealerships, car models that qualify for green license plates do not qualify for the purchase tax policy, and gasoline cars qualify for half-price purchase tax but not for Jiading district subsidies.

In terms of other fees, this SAIC Volkswagen 4S dealership offers a finance interest-free policy for a 40% down payment, as well as a finance fee of 2000 yuan. For example, purchasing a Bora L would involve an additional registration fee of 2000 yuan and an insurance fee of 4500 yuan. If a charging station can’t be installed, there is likely an additional affiliation fee of about 3000 yuan.

But as we talked, I found that the most cost-effective option is actually the gasoline version of the Bora L. Now, purchasing a Bora L qualifies for half-price purchase tax, and the dealership offers a discount of 10,000 yuan, which combined means a mid-range car model could even be purchased for around 90,000 yuan, without involving any other fees except for the 4000 yuan purchase tax.

After understanding the policies of Jiading District, many people set their sights on SAIC Volkswagen. As a well-known native enterprise in Jiading, it must enjoy policy advantages. I felt the popularity of SAIC Volkswagen as soon as I entered the store. This is the 4S store with the most people I have seen all afternoon.

But when asked about the subsidy policy of Jiading District, the actual situation surprised me a bit. The sales guy said that the policy does exist and they are indeed included, but the details have not yet been announced.

Going into more detail, the sales guy expressed helplessness, saying that the policy is still quite vague. For example, how to subsidize, who can be subsidized, and how much to subsidize and how to implement it have not yet been announced. Maybe we have to wait a few more days. Currently, there are indeed many people paying attention to this policy.

Although SAIC Volkswagen is among the companies included in the subsidy, purchasers must also meet one of the standards mentioned earlier in order to enjoy the subsidy: 1) household registration in Jiading District or holding a valid Shanghai residence permit, and the address on the residence permit is for non-Shanghai household registration residents in Jiading District; 2) employees of administrative and public institutions or institutions in Jiading District must pay social security contributions in Jiading.

Thus, in fact, only a small proportion of people can enjoy the subsidy in Jiading District. The sales guy said that this is to protect consumption in other regions, otherwise everyone would come to Jiading to order cars.

Regarding actual car purchases, fuel models such as POLO/ Lingdu can enjoy the normal policy of half-priced vehicle and vessel tax. Currently, booking a car takes about two months. The store still has old Lingdu models on special offer with good configurations, priced at only 130,000 yuan, and can be driven away directly, which is really tempting.

As for the pure electric cars that received the most attention, ID.3 and ID.4, there are no additional discounts in the store on top of the subsidies, but they have the least miscellaneous fees. Financing can reach up to 50%, with two years of interest-free loan without financial service fees, and a package of 40 meters of charging pile installation. Basically, SAIC Volkswagen has almost no miscellaneous fees except for the normal 1,000 yuan license plate fee and insurance costs.

When chatting with the sales guy, I mentioned that SAIC Volkswagen has surprisingly low miscellaneous fees. The sales guy joked that after all, their sales are not good now, and the market rule is that when sales are good, the miscellaneous fees are relatively high. When sales are bad, they also hope to sell more cars.

But I think he is being too modest, because as mentioned earlier, SAIC Volkswagen is the 4S store with the most people I have seen all day.

The interview was conducted two days ago. Today, in the morning, the sales guy sent me a message saying that the Jiading policy has been implemented, with a subsidy of 20,000 yuan for cars priced above 150,000 yuan and 10,000 yuan for cars priced below. However, he emphasized a sentence: limited quota.## Benefits of the subsidy policy

Returning to the subsidy policy mentioned at the beginning of this article, the benefits are certain. However, the policy mainly benefits the wide range of people who purchase gasoline-powered vehicles with a halved purchase tax. Secondly, the group who are willing to replace their gasoline-powered vehicles with pure electric vehicles will benefit from it. Lastly, residents and registered members who reside or work in Jading district and have a residence permit or work for an enterprise in Jading district, can enjoy higher regional subsidies. However, the subsidy is limited to specific car brands and models.

So, you don’t need to go to Jading district for this information, I have explored it for you.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.