IDRO Unveils 400 Million Toman, 8 Percent Loan to Replace Iran's Aging Cars

Farshad Moghimi, deputy minister of industry, mining and trade and head of Iran's Industrial Development and Renovation Organization (IDRO), said on Friday, August 14, 2026 (23 Mordad 1405), according to Khabaronline citing ISNA, that a new regulation on replacing aging vehicles will take effect next week, offering owners who scrap an old car and replace it with a new one financing of about 400 million tomans at roughly 8 percent interest over a three year repayment period. According to Eghtesad Online, applicants who choose the replacement option are referred directly to an automaker without a lottery or waiting list.

Moghimi said each scrappage certificate has been valued at 60 million tomans since about three to four months ago, and some vehicles qualify for three certificates worth a combined 180 million tomans. Under the regulation, aging vehicles not registered in the system will be barred from driving in major cities. IDRO said it processed more than 70,000 vehicles under a similar scrappage and replacement scheme last year.