What do they give
During the summer, the Ministry of Industry and Trade of the Russian Federation revised the terms of the soft loan program for buying Russian cars. The government now covers 20 percent of the car’s value, up from 10 percent in the past. Residents in the Far East Federal District receive a 25 percent reimbursement of their costs. The maximum price at which a discount can be applied was raised from 1.5 million to 2 million rubles.
To qualify, the purchased vehicle must meet a localization threshold. Presently, only domestically produced models meet all conditions: four Lada models – Grant, Vesta, XRAY and the classic Niva 4×4 (excluding the CNG gas versions) – along with all UAZ models and three variants of the GAZelle.
Additionally, the Evolute electric car, which will be produced in Lipetsk, is on a special subsidy track. It receives a subsidy of 35 percent, but not more than 925 thousand rubles.
Who qualifies
The discount is not universal. Eligibility largely depends on financing through a loan, with conditions such as an interest rate not lower than 1.1 percent, a down payment starting at 20 percent, and a loan term up to seven years. Many banks offer terms of three to five years.
Applicants must fall into one of several categories:
- “First Car” for individuals buying a vehicle for the first time and who did not previously own a car.
- “Family Car” if there is a minor child in the household and there are no other vehicle loans from 2018 onward.
- “Trade-in” when purchasing a vehicle and handing in an older car, with the old car being at least six years old and owned for at least one year.
- “Healthcare worker” and “Education worker” when employed in a state medical organization or a state or municipal educational institution.
How to obtain a subsidy
The process starts with an application for a loan from a bank participating in the state program or directly from the dealer. A form for submitting to dealers is available on the main site of VAZ Lada. After submission, the process unfolds largely automatically according to standard procedures. Depending on the category, a specific set of documents must be provided.
As of late August, five banks supported the state program: VTB, Sovcombank, RNKB, Otkritie and Setelem.
Different banks have varying loan rates and borrower requirements such as work experience and average monthly income. In addition, VTB and RNKB require mandatory hull insurance, while for some banks this is optional.
Benefits
In the end, purchasing a car with a subsidy is not cheaper than buying a car without a loan; the advantage lies in the reduced monthly payments. The total savings depend on the car price and the loan rate.
For example, subsidies of 800 thousand rubles on a loan at 15 percent can save about 250 thousand rubles when the initial payment is 200 thousand. A 20 percent grant reduces the loan by 160,000 rubles. This lowers the monthly payment and results in savings around 70 thousand rubles overall, depending on the exact rate and price.
Even if the savings seem modest, tens of thousands of rubles still matter on the road. Many buyers today rely on credit to purchase a car, making the proposed program a viable option when other options are unavailable.
Subsidies for compressed natural gas vehicles
In August the government raised subsidies for converting vehicles to methane, increasing the state support to as much as 48 percent of conversion costs, up from 24 percent. For a standard passenger car, savings can reach about 40 to 45 thousand rubles, while larger SUVs might see 70 to 75 thousand rubles in savings.
However, this program is limited to 26 regions. The first step is to engage a licensed conversion company. A current list of participating providers is available from official regional sources.
- Gas conversion in 2022 proved profitable for many buyers.
- Updates on the program are available through regional automotive outlets.