One-for-One Scheme Ended: 5 Things to Check Before Scrapping Your Car

The "One-for-One Replacement" scheme for electric private cars has been cancelled. Some owners are still working through the government's one-off arrangement, while many more simply want to know: now that the scheme is gone, should I still scrap my old car, when, and what should I watch out for? Pak Lam Car Scrapping, a scrap car company in Tsuen Wan, has put together this guide from published Transport Department (TD) guidance, government press releases and the relevant legislation.

Key takeaway: One-for-One ended on 31 March 2026. Only owners who ordered an electric private car on or before 25 February 2026 can still apply under the one-off arrangement, by 24 February 2027 – and they must scrap the old car first and register the new one within 3 months. For everyone else, scrapping no longer affects any tax concession.

8 things to know after One-for-One was cancelled

1. The scheme has ended: first registration tax (FRT) concessions for electric private cars, including One-for-One, were not extended beyond 31 March 2026.
2. No concession from 1 April 2026: electric private cars whose first registration application is submitted on or after 1 April 2026 get no concession. The date the TD receives the completed form and documents counts.
3. One-off arrangement only: electric private cars ordered, or whose shipment was arranged, on or before 25 February 2026 may still get the pre-revision concession once the TD verifies and approves the application.
4. Final deadline: the application, the scrapping and deregistration of the old car, and the new car's first registration application must all happen on or before 24 February 2027.
5. Scrap first, register second: the old car's deregistration date cannot be later than the new car's first registration application date, and the two dates cannot be more than 3 months apart.
6. Same owner: the registered owner of the new EV at first registration must be the registered owner of the old car when it was scrapped and deregistered.
7. Scrapping procedures are unchanged: the vehicle dismantling certificate, TD184 within 15 days, licence fee refunds and keeping your plate number all work as before.
8. Commercial EVs still exempt: electric commercial vehicles, motorcycles and motor tricycles keep a full FRT waiver until 31 March 2028.

Contents

1. One-for-One in brief
2. What changed and what did not
3. The one-off arrangement: who still qualifies
4. The 8 conditions
5. 5 things to check before you scrap
6. Working back from the 3-month limit
7. Forms, documents and licensing offices
8. How FRT and the concession are calculated
9. One-for-One "quota" risks
10. Do you still need to scrap your car?
11. Electric commercial vehicles
12. Example scenarios
13. Common myths vs facts
14. Where to ask
15. How Pak Lam fits your timetable
16. FAQ

1. One-for-One in brief

The scheme's full name is the "One-for-One Replacement" Scheme providing a higher FRT concession for electric private cars. An owner who scrapped and deregistered an eligible old private car, then first-registered a new electric private car in their own name, received a higher FRT concession than a standard EV buyer. Only the dates that still matter today are listed below.

Background only: media reports citing TD figures put average monthly EV first registrations in 2025 at about 3,129. After the Budget announcement, registrations rose to 9,150 in March 2026 and 8,078 in April. Other reports said about 13,500 One-for-One applications were approved in March, involving about HK$899 million in concessions.

2. What changed and what did not

In short, the cancellation only affects the tax concession on new electric private cars. Car scrapping itself works exactly as before. Any extra value an old car once had as a One-for-One trade-in has gone, so be cautious if anyone still quotes far above the market "because of One-for-One".

3. The one-off arrangement: who still qualifies

The government introduced a one-off arrangement for buyers who had already ordered a car but could not register it before 1 April 2026. They can still pay FRT at the pre-revision concession level if:

• the electric private car was ordered on or before 25 February 2026, or its shipment to Hong Kong for the owner's own use had been arranged; and
• it could not be first-registered before 1 April 2026; and
• the local registered distributor, registered importer or owner submits the required supporting documents to the TD; and
• the TD verifies and approves the application.

Applications must be submitted on or before 24 February 2027. For One-for-One applications under the one-off arrangement, the old car's scrapping and deregistration and the new EV's first registration application must all take place between 28 February 2018 and 24 February 2027 (both dates inclusive).

Which situation are you in?

An electric private car with a taxable value above HK$500,000 gets no FRT concession, even under the one-off arrangement.

4. The 8 conditions

The TD states that a One-for-One application under the one-off arrangement must meet all of the following. Check each one against your vehicle registration document before you scrap.

The 4 most common mistakes

• Age runs from first registration, not the year of manufacture or your purchase date. Parallel imports can differ by more than a year.
• Ownership must be continuous. A transfer restarts the clock; a family member's car cannot be used unless it was transferred to you more than 18 months earlier.
• Licensing looks backwards. It is not about how long your current licence has left – it is your licensing record before deregistration.
• The new car must be fully electric. Plug-in hybrids and range-extenders do not qualify as the replacement car, although a hybrid can be the old car.

Not sure about the old car's licensing days in the last 12 months? Email the TD at hklo@td.gov.hk, or write to Executive Officer / First Registration Tax, 3/F, United Centre, 95 Queensway, Hong Kong, enclosing a photo or copy of the registration document signed by the registered owner.

5. 5 things to check before you scrap

1. Confirm you are covered by the one-off arrangement

Ask your dealer whether the car was ordered on or before 25 February 2026, whether they can supply the supporting documents the TD needs, and when the TD22 and TD628 will be filed – before 24 February 2027. If you are not covered, do not scrap your car for the sake of One-for-One.

2. Confirm eligibility first – scrapping cannot be undone

Once a car is dismantled and deregistered, its registration cannot be restored. Check the 6-year age, 18-month ownership, 304-day licensing and same-owner rules before booking.

3. Get the order and timing right

Deregister the old car on or before the new car's application date, no more than 3 months earlier, and everything by 24 February 2027. Scrap too early and you breach the 3-month limit; wait for the new car and you may hit the deadline.

4. Make sure the certificate meets TD requirements

The vehicle dismantling certificate, commonly called lau che zhi (劏車紙), is issued by the scrap car company that dismantles the car, not by the government. The TD requires it to show:

• the chassis number and registration mark of the dismantled vehicle;
• the date and place of dismantling;
• the name and business registration number of the scrap car company;
• the signature of the company's representative, with the company chop.

Check every item on the spot and keep a photo. There is no TD "certificate verification" step – you check the details yourself and lodge TD184 in time. Tips on picking a reliable company are in choosing a scrap car company.

5. Deregister within 15 days

Under section 20 of the Road Traffic (Registration and Licensing of Vehicles) Regulations (Cap. 374E), the registered owner must notify the Commissioner for Transport in writing within 15 days after the vehicle is dismantled. Submit a completed TD184 (Notice of Cancellation of Vehicle Registration) and supporting documents to a TD licensing office, plus TD129 if you want to keep your plate number. The TD warns that an owner who does not deregister remains liable for everything arising from that vehicle.

6. Working back from the 3-month limit

Illustrative example only. Confirm actual dates with your dealer and the TD.

If you buy from a registered distributor or importer, they file the One-for-One application (TD628) and you sign TD22 and the application form with them. If you import the car yourself, you file it. Processing takes about 10 working days from receipt of complete documents. Approved cars under the one-off arrangement must complete first registration on or before 24 February 2027 or within 5 working days of approval, whichever is later; with accurate TD22 documents, registration takes two working days. Completed TD628, TD22 and documents can be emailed to hklo_reg@td.gov.hk for preliminary checking.

7. Forms, documents and licensing offices

The application date is the date the TD receives complete TD628, TD22 and documents; errors or omissions push it to the date corrections arrive.

Documents for deregistration

• Original vehicle registration document (ask the TD first if lost)
• Original vehicle licence, if still valid (needed for a refund)
• Original vehicle dismantling certificate
• Owner's ID (HKID; passport for non-residents; certificate of incorporation for companies)
• If using an agent: copy of the owner's ID and the agent's original HKID
• Original personalised registration mark certificate, if applicable
• Completed TD184, plus TD129 if keeping the plate

Opening hours are Monday to Friday, 9am to 5pm, closed on weekends and public holidays. TD184 can also be posted or lodged by an agent. See our scrap car process for the full steps.

8. How FRT and the concession are calculated

The concession is deducted from the tax: tax payable = FRT − concession, capped at both the tax amount and the limit, so tax never goes below zero. It is not a cash subsidy and has nothing to do with the money a scrap car company pays you – the claim that "concession = new car tax − scrap quote" is wrong.

Illustrative only; actual tax depends on the taxable value assessed by Customs and the TD's decision.

9. One-for-One "quota" risks

Under conditions (f) and (c), the new EV must be registered to the same person who owned the old car continuously for 18 months. Eligibility belongs to the person; the TD has no quota transfer system. So-called "quota" deals worked by having the old owner scrap the car, buy and register the new EV in their own name, then transfer it to the real buyer. The buyer bears the risks: the seller may refuse to transfer, sellers have reportedly sold the same eligibility to several people, ownership, debt and insurance sit with the seller until transfer, and false declarations can cause problems. With only the one-off arrangement left, treat any "last quota" offer that asks for payment with great caution. Pak Lam only provides scrapping, certificates and paperwork – never quota matching. Suspected scams: call the Anti-Scam Helpline 18222. See also how to avoid scrap car scams.

10. Do you still need to scrap your car?

Yes, if the car is old and repairs cost close to its value, it has been in an accident or flood, it will not start after long storage, its licence, insurance or parking is about to expire, or you are emigrating or cutting costs. Company fleets retiring vans and trucks also scrap as usual.

• Licence fee refund: at least 60 days must remain; refund = annual licence fee × 0.24% × days remaining. Return the licence within 15 days of the dismantling date and days count from the day after that date. Example: HK$5,000 a year with 180 days left = HK$2,160.
• Keeping your plate: lodge TD129 with deregistration; it is held for 12 months at HK$560 per mark each time. Assign it to another car in your name (such as your new EV) within that period or it is cancelled.
• Insurance refunds depend on your policy; ask your insurer.

If One-for-One does not apply to you, scrap earlier rather than later: the refund shrinks daily and parked cars lose value. Pricing details are in our scrap car price guide.

New rules for long-unlicensed vehicles

The Road Traffic (Registration and Licensing of Vehicles) (Amendment) (No. 2) Regulation 2024 took effect on 22 December 2025. Owners of vehicles unlicensed for two years or more receive a notice and must, within three months, relicense the vehicle, scrap it or export it permanently and lodge TD184, or apply for exemption on form TD651. Failing to act is an offence: up to HK$10,000 and 3 months' imprisonment on first conviction, and HK$25,000 and 6 months on subsequent convictions. The TD does not cancel registrations automatically. Cars that cannot move can be collected with our door-to-door scrapping service.

11. Electric commercial vehicles

FRT for electric commercial vehicles, motorcycles and motor tricycles remains fully waived until 31 March 2028. Vans registered as goods vehicles cannot be One-for-One trade-ins, but fleets can plan replacements now. Each scrapped vehicle needs its own certificate and TD184; company vehicles need the certificate of incorporation; tail lifts, cranes and refrigeration units can be valued separately. See the truck scrapping guide.

12. Example scenarios

Illustrative examples only, not real cases. Eligibility is decided by the TD.

Ordered in February, filing next January

Ordered on 20 Feb 2026; old car first registered in 2016, owned for 5 years, always licensed; dealer expects to file in mid-January 2027. Scrap in mid-December 2026, lodge TD184 and TD129 within 15 days. Had the car been scrapped in September 2026, the gap would exceed 3 months and the cap would fall from HK$172,500 to HK$58,500 – and scrapping cannot be reversed.

Ordered in March

Ordered on 10 Mar 2026: not covered, full FRT. Scrap while 60+ days of licence remain and use TD129 if you want your plate on the new car.

Licence lapsed for a few months

The car may fall short of 304 days. Email hklo@td.gov.hk before scrapping.

Old car in a spouse's name

Condition (f) requires the same registered owner. Check with the dealer and TD; names cannot be mixed.

13. Common myths vs facts

14. Where to ask

15. How Pak Lam fits your timetable

Founded in 2011, Pak Lam runs its own scrapyard in Chuen Lung Village, Route Twisk, Tsuen Wan, with its own tow trucks.

One-for-One eligibility and concessions are decided by the TD; no scrap car company can guarantee approval. TD22 and TD628 are normally filed by the dealer.

When booking, mention "one-off arrangement", the expected filing date, plate number, make and model, year of first registration, whether it starts, licence expiry, whether you want to keep the plate and where the car is parked, with photos of all four sides, the odometer and the registration document. WhatsApp us or call 6799 5101.

16. FAQ

General questions, including the current status of the scheme and the concession caps, are answered in our car scrapping FAQ.

Disclaimer: Based on the government press release on EV first registration tax concessions (25 February 2026), TD guidance on the One-for-One scheme, the one-off arrangement and cancelling registration of disposed vehicles, and Cap. 374E, as at October 2026. Eligibility and concessions are decided by the TD and policies may change; always check the latest TD announcements. Scenarios are illustrative, not real cases. This is not legal or tax advice.