With the increasing popularity of electric vehicles (EVs) in Hong Kong, the government’s “One-for-One Replacement Scheme” has become a major incentive for many car owners considering purchasing an EV. This policy aims to encourage residents to switch to more environmentally friendly transportation options by offering tax incentives to reduce the cost of buying an EV. However, for car owners who do not have an eligible old vehicle, the “One-for-One Quota” trading market provides an alternative solution. This article will delve into the concept of the “One-for-One Quota,” its trading process, price trends, and the risks and considerations involved, offering readers a comprehensive understanding of this mechanism.

The “One-for-One Replacement Scheme” is a tax incentive policy introduced by the Hong Kong government, which has now been extended until March 31, 2026. Under the scheme, car owners must scrap and deregister an eligible old private car between February 28, 2018, and March 31, 2026, and then register a new EV under the same owner’s name for the first time to qualify for the first registration tax exemption. Eligible old vehicles must meet specific conditions, such as being first registered at least six years prior, being held by the owner for at least 18 months, and having paid license fees for the 10 months before scrapping. However, not all car owners have such an old vehicle, or some may be unwilling to scrap their old cars at a low price, giving rise to the “One-for-One Quota” trading market. Simply put, the “One-for-One Quota” refers to purchasing an eligible old car through intermediaries or dealerships to complete the scrapping and deregistration process, thereby obtaining eligibility for tax incentives. Although this is not the original intention of the scheme, as long as both parties agree, the process is not legally prohibited.

For prospective EV buyers opting to participate in the scheme through “One-for-One Quota” trading, understanding the specific process is crucial. Generally, the steps include: first, the new car owner will find an eligible old private car through brokers, dealerships, or scrapping companies; next, the old car owner arranges for the vehicle to be scrapped and completes the deregistration process; then, the new EV is initially registered under the old car owner’s (i.e., the quota seller’s) name; finally, the registration of the new car is transferred to the new car owner (i.e., the quota buyer). While this process may seem cumbersome, it provides a feasible solution for car owners who are unwilling to scrap their own old cars or do not have an eligible one. Old car owners can also sell their vehicles to interested buyers through intermediaries, thereby fetching a higher price for their old cars.

In terms of pricing, the market price for a “One-for-One Quota” typically ranges between HKD 13,000 and HKD 18,000, depending on market demand. When the scheme was originally set to expire on March 31, 2025, prices surged due to increased demand. However, after the government announced a two-year extension until 2026, prices gradually stabilized at more reasonable levels. For those considering participating in the scheme, it is advisable to plan ahead to avoid budget fluctuations caused by price volatility closer to the deadline. For example, waiting until the scheme is about to end before searching for a quota may result in higher costs due to intense market competition.

Although “One-for-One Quota” trading is not legally prohibited, participants should still be aware of potential risks. First, price competition is a significant concern—individual sellers may resell their quota to higher bidders on trading platforms, disrupting buyers’ plans. Second, fraud risks cannot be ignored, as unscrupulous sellers may collect deposits from multiple buyers simultaneously and then disappear, leaving buyers hesitant to pursue legal action under the misconception that such transactions are illegal and thus suffering financial losses. Additionally, issues related to the seller’s background can cause trouble—for instance, there have been cases where bankrupt individuals sold quotas, potentially embroiling new car owners in debt disputes. To mitigate risks, buyers can opt to trade through reputable third-party intermediaries, insist on formal contracts to safeguard their rights, and conduct basic background checks on sellers to avoid future complications.

When deciding whether to participate in “One-for-One Quota” trading, car owners should evaluate their circumstances, such as whether they own an eligible old car and whether purchasing a quota is cost-effective. Additionally, they must ensure the timing of scrapping and deregistering the old vehicle complies with regulations to avoid affecting tax incentive applications. For details on new EV tax calculations or other specifics, car owners can refer to government guidelines or seek professional advice.

Overall, “One-for-One Quota” trading offers flexible options for prospective EV buyers, especially those without eligible old vehicles. With the scheme extended until 2026, car owners still have ample time to plan. It is advisable to act early, thoroughly understand market conditions, and conduct transactions through reliable channels to avoid price fluctuations or other potential issues. The widespread adoption of EVs not only helps reduce carbon emissions but also offers long-term economic benefits to car owners, with participation in the “One-for-One Replacement Scheme” being a crucial step toward achieving this goal.