Last updated: 13 November 2014
"FIRST CAR" PROGRAM: IMPLEMENTING RULES
After the “First Car” Program was launched by Government Ordinance no. 66/2014, published in the Official Journal no. 768 of October 22, 2014, the Ministry of Finance launched a public debate in order to pass the Program’s Implementing Rules.
The project comprising these rules was amended several times after public consultations, but its final version was published by the Ministry of Finance on November 11, 2014 and shall be put to the vote of the Government in order to be finally approved. Subsequently to our article published on October 30, 2014, presenting the Ordinance in a general manner, we continue hereinafter by presenting you several aspects related to the implementing rules.
CONDITIONS
The implementing rules detail the means of obtaining the credit and bring forth several new conditions imposed to the beneficiary.
According to these rules, anyone over the age of 18 can benefit from a funding covering a maximum of 95% of the price of the vehicle, guaranteed by the State in a proportion of 50% at most. Consequently, the advance payment to be made by the beneficiary is 5% of the price (maximum price = 50,000 Lei with/without VAT, namely approximately 11,300 Euros).
The maximum financing period is 60 months.
The beneficiary must prove, by presenting a pro-forma invoice issued by the seller, the fact that the vehicle the former wishes to buy is new, manufactured in the intercommunity space or imported, that it complies with the Euro 5 antipollution standards and that its price does not exceed 50,000 Lei.
Each beneficiary can only buy one car and sellers must be legal persons with vehicle sale as their main activity.
The beneficiary of this Program must be a natural person, aged over 18.
When the sale transaction is performed, the beneficiary must conclude a CASCO insurance policy for the vehicle; such insurance policy must cover at least the total or partial damage in case of theft and accident. The obligation to pay the insurance remains in force during the entire warranty period and should the beneficiary not comply with this obligation the bank shall be entitled to conclude the insurance policy in the name and on behalf of the beneficiary and to recover the amounts paid, including the amount of the monthly installment.
THE SALE OF THE VEHICLE
In comparison with the first project, the present rules provide the possibility for the beneficiary to sell the vehicle bought under the Program if the bank agrees, for it and for the State, with such sale. Nevertheless, the balance of the State - guaranteed funding shall have to be paid in order for the sale to take place.
Please note that should the credit not be paid the bank shall receive its funding back from the Ministry of Finance within the limits of the guarantee; subsequently, the Ministry of Finance shall recover these amounts from the beneficiary, by a tax debt recovery procedure.