Concept in Definition ABC

The acronym PIVE is the acronym for Efficient Vehicle Incentive Program. As its name suggests, a PIVE plan is a program that aims to encourage students to old vehicles are written off by their owners and, at the same time, for new ones to be acquired vehicles.

PIVE plans are promoted by governments and have become very popular because they are associated with a series of advantages for the consumer, for the automotive industry and for the environment.

Saving is the main attraction of PIVE plans

The consumer who considers acquiring a new vehicle with the incentive of a PIVE plan has a unique attraction: the final price to be paid is cheaper because the government subsidizes the new acquisition. In this sense, there are usually several types of discount depending on the type of consumer (for large families, for SMEs or for self-employed workers).

Regardless of the price, some PIVE plans incorporate a series of additional advantages: the processing of the definitive cancellation of the old vehicle or the procedures for scrapping.

This type of plan has a strategic nature

It must be taken into account that old vehicles are more polluting and when they are withdrawn from circulation by a new vehicle, less contamination medium environment.

From a traffic safety point of view, older vehicles cause more accidents

This is because their safety They are less advanced and the wear of certain elements of the cars is directly related to the number of accidents (this circumstance is very common with wheels in poor condition).

From an economic point of view, the automotive sector is associated with many jobs. For this reason, the purchase of a new vehicle is an incentive for the automotive industry.

The consumer who buys a new vehicle can save fuel, as new vehicles usually have a lower consumption of gas.

From the point of view of administration state, PIVE plans do not represent an expense, as it must be noted that the taxes collected from the sale of vehicles exceed the expense of the government grant.

Photos: Fotolia - Ivector / Serj Siz kov