Romanian “Rabla” Program Allows Loans, Leasing On For Purchases

Romanian people who replace their cars through the car park renewal program "Rabla" will be able to use leasing and lending to finance the purchase, according to an order by the environment minister, which also states that one owner can receive the bonus from the state for each vehicle scrapped.

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Romanian “Rabla” Program Allows Loans, Leasing On For Purchases

At the same time, the "Rabla" Program was widened, through the introduction of the scrapping bonus for light commercial vehicles as well, according to an order by the Ministry of Environment, published Monday in the Official Journal.

Light commercial vehicle producers and importers can submit, by August 15, requests to join the third stage of the “Rabla” program.

"The scrapping bonus is deducted by the validated producer from the purchase price of a new vehicle, while the difference is provided by the owner from their own finances, including bank loans or financing based on a financial leasing contract," the document reads.

So far, the "Rabla" Program only targeted buyers who had their own financial resources to buy cars.

In addition, one owner can receive several scrapping bonuses, through the purchase of more than one new cars, in exchange for scrapping an equivalent number of used cars, the normative act states.

So far, one owner could only receive one scrapping bonus, in exchange for the scrapping of one car aged more than 10.

The total number of spots in the “Rabla” Program grew this year to 60,000, from 40,000 in 2008, while the scrapping bonus grew from 3,000 lei (EUR1 = RON4.2243) to RON3.800.

The funds allotted to the program this year cumulate RON228 million.

The Romanian Environment Fund Administration validated the involvement of 134 producers, importers and distributors of cars in the second stage of the program this year, and only those who depleted at least 80% of the levels they received were allowed in the second stage.

In the first stage of the program, 12,064 cars were sold, out of a planned total of 20,000 units.

The second stage of the program will unfold between June 1 and August 31 and will involve a planned 27,936 de, (including 7,936 not sold in the first stage). The sum allotted by the Environment Fund for this stage reaches RON106 million. The final stage of the program will take place between September 1 and December 11.

New car sales in Romania dropped by 49.2% in the first five months, to 57,894 units, according to APIA data.


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