Proton Xchange Programme – scrap your 15-year old car for RM2k discount on a new Proton, free road tax

Remember the RM5,000 ‘cash for clunkers’ programme Proton had back in the day? It’s back, and it’s called the Proton Xchange Programme. If you have an old car taking up space, and getting it to run well again doesn’t make economical sense, how about trading the hunk of metal for a discount on a new Proton?

Launched today in a ceremony attended by transport minister Anthony Loke, the Proton Xchange Programme is described as ‘support for the government’s initiative to enhance road safety and promote sustainable mobility’. It’s open to owners of cars that are at least 15 years old, and in a condition that would be deemed to be uneconomical to repair for continued safe usage.

Proton says that it’ll accept vehicles from any brand, and even lorries and buses that meet the above-mentioned requirements are eligible. Of course, you’ll have to show proof of ownership.

Proton Xchange Programme – scrap your 15-year old car for RM2k discount on a new Proton, free road tax

For your old vehicle, Proton will offer a RM2,000 overtrade incentive, which can be used for any Proton model, including the Proton eMas 7 EV. The only condition is that the new Proton has to be registered before the end of 2025. Since Proton has confirmed that we’ll get a new AMA-based Saga this year, you can use the RM2k for that, too.

Vehicle owners will need to provide a Certificate of Destruction (COD) obtained from Car Medic, the programme’s official partner, together with a JPJK1KD form to prove their old vehicle has been officially deregistered by the road transport department. Car Medic will also forward the documents to Proton.

Car Medic, a Department of Environment (DOE)-certified and JPJ-appointed authorised automotive treatment facility (AATF) since 2020, offers convenient e-Dereg services (door-to-door or at their facility) and handles restriction checks, deregistration, towing, safe disposal, and COD issuance for this programme. Of course, one can engage Car Medic directly, but you’ll likely receive just a few hundred ringgit for your old car.

Proton Xchange Programme – scrap your 15-year old car for RM2k discount on a new Proton, free road tax

The RM2k incentive can be used for all Proton models, including the eMas 7 EV

By the way, the e-Dereg service allows MyKad holders in selected areas to complete JPJ deregistration digitally at their vehicle’s location. Introduced last year, you can read more about it here.

“The ministry of transport supports the Xchange Programme initiative and encourages more OEMs to follow Proton’s example and look beyond chasing sales and profits. Malaysia’s first automotive company has once again become an agent of change for the automotive industry and is leading by example. I would like to say thank you and congratulate Proton for taking the lead and initiating this Xchange Programme,” Loke said.

“The Proton Xchange Programme represents a significant step towards a safer and greener automotive future for Malaysia, demonstrating Proton’s commitment to both its customers and the nation. We also hope that this initiative can help to incentivise the replacement of older vehicles to new cars, which are equipped with advanced safety features that can minimise safety hazards on the road,” said Proton CEO Li Chunrong.

Proton has allocated RM4.8 million for this pilot programme, which will run until the end of December 2025. That means the limit is 2,400 units. At the event, Loke surprised the crowd by offering one-year free road tax to all new cars registered under the Proton Xchange Programme. What do you think of this scheme?