Will buying a car become the 4th area of ​​spending maternity capital?

Since 2014, the Russian Government has been actively discussing the introduction of permission to spend money on buying a car in the Maternity Capital program. Every year the state rejects this opportunity. In 2020, it is impossible to purchase a vehicle using federal maternity capital , but there is already a bill, and the conditions for receiving it are known. Also, on the territory of eleven constituent entities of the Russian Federation, regional capital can be spent on purchasing a car . These are Novosibirsk, Kurgan, Kaliningrad, Ulyanovsk, Oryol, Tula, Rostov, Leningrad regions, Kamchatka and Perm territories, the Republic of Yakutia.

On June 2, 2020, State Duma deputies submitted for consideration a version of the bill that would allow maternity capital funds to be spent on purchasing a car. It contains many restrictions, both on engine power and price, and on the number of seats in the car. If it is accepted, the information on this page will be corrected ! At the moment, it is not possible .

Who has the right to buy a car with maternity capital?

The bill provides for the purchase of a car if the family meets several requirements:

• birth or adoption of a disabled child;
• large families;
• living conditions comply with standards;
• women or men who are raising two or more children;
• A family owns no more than one car.

As for regional payments, the conditions may have specific features. For example, in the Kamchatka Territory, the law provides for obtaining a certificate and using it to purchase a car after the birth of the first child.

Is it possible to spend maternity capital on buying a car?

At the moment, the law regarding the expenditure of maternity capital funds on the purchase of a car has not been adopted at the federal level.

Buying a car is available to large families only in nine regions. Let us consider the features of such programs financed from the regional budget.

We will also answer questions about whether a law will be adopted regarding providing such an opportunity to all parents with many children in the Russian Federation, and whether it will be possible to spend maternity capital on buying a car in 2020.

Whether the law was passed or not

Every year, a draft law regarding allowing parents with many children to spend maternity capital on buying a car is considered in the State Duma, but has not been adopted in its final version.

As of 2020, the law has not been adopted at the federal level. Only in certain regions of the Russian Federation there are regional programs under which you can spend family capital on purchasing a car.

In the near future, a new consideration of the bill with amendments is planned, according to which it is possible to purchase a car with a capacity of no more than 8 seats.

In this case, the car must be registered in the common shared ownership of all family members, including children. The bill provides for certain restrictions and requirements:

• the car does not have to be a passenger car;
• its sale is not permitted in the coming years;
• citizens receive the right to purchase domestically produced cars or foreign cars that were assembled on the territory of the Russian Federation;
• the car being purchased should not have previously been registered in the traffic police database, that is, only new cars can be purchased.

All these initiatives were rejected by the Government and the majority of people's representatives. In March 2020, when considered as an anti-crisis measure, this bill was not adopted.

About the use of maternity capital to form a pension for the mother of a child, see the article: use of maternity capital to form a mother’s pension. How to apply for a mortgage using maternity capital in 2020, read here.

At the regional level, in certain regions of the Russian Federation, parents with many children have the opportunity to spend family capital on buying a car.

However, this assistance is financed from regional or municipal budgets.

Such regional maternity capital for the purchase of a car is only about 100-150 thousand rubles, but provides parents with wider opportunities for targeted use.

Holders of such state assistance have the right to add their own savings and purchase the necessary car for family needs.

Residents of Kamchatka, Kaliningrad, Ulyanovsk, Oryol, Novosibirsk regions, Mordovia, and Nenets Autonomous Okrug have this right.

Machine selection

The bill contains some restrictions. Thus, only certain categories will be able to spend state aid on the purchase of a car - families with many children, families with an adopted child or a child with a disability.

After all, these categories are primarily in dire need of a car for transportation.

With maternity capital funds, it will be possible to purchase exclusively domestic cars or domestically assembled foreign cars.

Also, a purchased new car is not allowed for resale for three years. A large family can also take out a loan to purchase a car and pay part of the funds using a certificate.

The procedure for choosing a car involves initially finding a seller who agrees to sell the car with non-cash payment from the state budget.

Not every seller will agree to this scheme, since sometimes it drags on over time.

Government officials must check the legal purity of the transaction and the authenticity of the documentation provided by the certificate holder.

In most cases, the procedure takes about 1-2 months. When choosing a car brand and model, you must be guided by the needs of the family.

It is recommended to choose spacious cars with the ability to comfortably transport all members of a large family.

List of required papers

To obtain the right to use maternal capital to purchase a car, you must provide the following package of documents:

• applicant's passport;
• original maternal certificate;
• a written statement stating the desire to use the funds to purchase a car;
• car purchase and sale agreement;
• car passport issued to the applicant;
• car loan agreement;
• an extract from a banking institution with account details for transferring funds and the amount of debt along with interest;
• If you purchase a car in installments from an individual, you will need to provide a certificate of the amount owed under the contract.

List of documents

After receiving the certificate, you need to contact the Pension Fund. There, write a statement asking to use the amount of family capital to purchase a vehicle and justify the reasons for the decision. Also attach the remaining required documents to the document:

• parents' passports;
• a copy of the certificate;
• contract of sale;
• car passport;
• if you need a loan for additional payment, then a loan agreement;
• certificates of debts indicating account details;
• If you plan to purchase a car from a private person in installments, you need to provide a certificate about the amount of the debt that has not been paid.

The vehicle will be registered in the mother's name, but all family members will receive shared ownership.

Procedure for applying to the Pension Fund

The decision regarding the provision of funds for the purchase of a car is made by the local Pension Fund of the Russian Federation, and citizens should turn to it.

The step-by-step circulation algorithm includes the following stages:

• collect all the necessary documents, conclude a purchase and sale or car loan agreement with the seller;
• the owner of the capital must write an application requesting the necessary amount to purchase a car, and attach the necessary documents and reasons;
• provide the entire package of documents to the responsible employee of the Pension Fund;
• expect a decision to be made within 1-2 months;
• after making a decision from the Pension Fund, the citizen receives a notification;
• funds are transferred to the seller’s bank account specified in the application;
• then the ownership of the car must be issued in equal shares to all family members.

Money transfer

In the regions, permission to purchase transport is approved only after social security employees have checked the current living conditions of children from a large family.

If the family has sufficient living space to raise children, then a positive decision is made regarding the allocation of maternity capital funds for the purchase of a family car.

Video: Do ​​you need the opportunity to buy a car with “maternity capital”

After transferring funds to the details specified in the application from the Pension Fund of Russia to the account of the buyer or the credit institution where the car loan was issued, parents can register ownership of the purchased car.

Which car dealerships work with maternity capital?

To purchase a car, you need to find a car dealership or an individual who works on a cashless basis. Otherwise there are no problems.

The program to support large families in Russia was launched in 2006. Nevertheless, the problem of their purchase of a car was not resolved, because the use of maternity capital for this was not directly allowed. Its use, even for legally permitted purposes, has long been fraught with problems. When it comes to the question of whether it is possible to buy a car with maternity capital, not everything is so simple.

Features of the new bill

December 2014 was marked by an order given by the Prime Minister to the Government of the Russian Federation. Its essence was that before February 12, 2020, the Cabinet of Ministers should consider the issue of creating a real opportunity for citizens to purchase a car for maternity capital. Such a step was called a condition for the development of the domestic automobile industry.

The matter did not reach a serious change in the situation either in 2020 or in 2020, when a bill was even introduced into the State Duma that proposed amendments to Federal Law No. 256 of December 29, 2006. To date, no law has been adopted allowing the use of maternity capital to purchase a car.

The legislation directly indicates several ways to develop maternal capital:

• children's education;
• purchase or reconstruction of housing for a family;
• mother's pension;
• social adaptation of children with disabilities.

The above-mentioned bill contains a number of conditions under which it becomes possible to buy a car with maternity capital. Money for the purchase must be transferred to the seller only in cashless form. It is possible to obtain the certificate before the youngest child reaches 3 years of age. The car itself must be:

• made in Russia;
• a completely new car (purchase of a used car is not allowed);
• suitable for a large family in terms of the number of seats, but there should be no more than 8.

It is also proposed to limit the possibility of resale of the car by making it:

• not available for resale for the first 3 years after purchase;
• necessarily divided into shares.

The latter establishment may lead to a situation where parents who are unable to agree on the procedure for using the vehicle will be forced to resort to court proceedings on this issue. In resolving such a dispute, the magistrate will first of all take into account the interests of the children. Each parent will be allocated their own days to travel in the family car.

Is it possible to buy a car with mat capital today?

After several years of discussion about this additional opportunity for families to use maternity capital to purchase a car, the law has now been adopted. But so far only some regions are affected by this innovation.

Conditions for purchasing a car:

1. The vehicle must be of domestic production or Russian assembly;
2. The car must be new;
3. Resale of the machine is prohibited for a specified period of time;
4. The car does not have to be a passenger car, it can even be a bus or a tractor, if it is so convenient for the family, and if there is enough capital for it. But in some regions, a mandatory requirement for a car is eight seats;
5. You can not use all the money for the purchase, or you can pay extra from your own funds if the car costs more;
6. A car purchased with maternity capital is registered as the common shared property of parents and children, or is registered in the name of the mother, since she is the one who is given the opportunity to manage maternity capital.

Pros and cons of investing a certificate in a vehicle

There are the following advantages of using maternity capital for a car:

• the opportunity to fully realize maternity capital without attracting additional finance, since its amount will be 475 thousand rubles in 2020, which is quite enough to buy a car;
• the ability to quickly move a family with children in both urban and rural areas;
• support for the domestic automobile industry;
• the opportunity to replenish the family budget by earning money as a private driver.

Critics of this bill cite the following arguments against it:

• rapid depreciation of the car due to wear and tear;
• threat of damage to the car when involved in an accident;
• the possibility of quickly losing a car due to theft;
• the possibility of quick resale of the vehicle, which means actual cashing out of capital;
• A car is not a necessary attribute of a prosperous family, unlike education and housing.

What documents are needed to obtain, and what can regional maternity capital be spent on?

• passport or other documents confirming the identity, place of residence and authority of the applicant as the legal representative of the child;
• birth (adoption) certificate of all children in the family;
• documents confirming the child’s Russian citizenship (stamp of the passport and visa service on the back of the birth certificate, insert about the child’s citizenship, etc.)
• pension insurance certificate (SNILS).

We recommend reading: How to legalize a garden house on a garden plot 2020

Regional financial support for families with children in the Russian Federation was launched on the initiative of the President of the Russian Federation at the end of 2011. One of the support measures is the payment of regional maternity capital to families who have a second child and subsequent children.

Implementation of the program in the constituent entities of the Russian Federation

Problems with the implementation of the federal law have led to the development of this issue in the regions. Since 2008, in some regions of the federation it has become possible to spend part of maternity capital on buying a car. Each region determines the amount of such regional capital independently, but usually it ranges from 100 to 150 thousand rubles. There are still few entities practicing this form of support for young families:

• Kaliningrad region;
• Ulyanovsk region;
• Novosibirsk region;
• Smolensk region;
• Kurgan region;
• Kamchatka Krai.

In the latter, the program is notable for the fact that a mother can receive capital amounting to 100 thousand rubles at the age of 19 to 25 years after the birth of her first child. This money can be spent after the child reaches six months. In addition, for the second and subsequent children, regional capital payments are provided in the amount of 300 thousand rubles for each. The only limitation in choosing a car and a seller is the need to purchase only a new car.

Now let’s directly consider the question of how to buy a car.

Choice of seller and car

A family intending to purchase a car using maternity capital must first find a seller who is willing to sell the car for cashless payment.

The state carefully monitors the legality of the use of maternal capital, so the purchase process will take some time (usually from one to two months). Authorized bodies verify the authenticity of the documents involved in the transaction, as well as the status of the seller.

Submission of documents to the Pension Fund of Russia

Holders of maternity capital must submit an application containing a request to purchase a car using maternity capital funds to the Pension Fund. The application must properly justify your choice. The package of documents that must be attached to it is as follows:

• vehicle passport;
• car purchase/sale agreement;
• a bank certificate confirming the presence of debt on the account to which funds are planned to be transferred during the transaction;
• loan agreement (in case there are not enough capital funds and borrowed funds are attracted).

Payment and use of the car

Parents become happy owners of a personal car after the money is in the account of the seller or the bank from which the car loan was taken out for this purchase.

In different regions, there are different nuances of purchasing a car using regional capital. The following table will help you understand them.

Unfortunately, at the level of the Russian Federation, the issue of purchasing family cars with maternity capital has not yet been resolved. Nevertheless, some regions have taken up the task of supporting citizens in this area, and this opportunity should be used by everyone who is already planning a new addition to the family.

The question of whether it is possible to purchase a car with maternity capital has been discussed in society since 2009. However, legislators have still not reached agreement on this issue.

On March 17, 2020, another bill was introduced into the State Duma with the goal of allowing the investment of maternal money in the purchase of a vehicle. It was assigned the number 125755-7. In the same year, this bill remained in limbo and until the end of 2019 inclusive, it did not pass a single Duma reading.

Maternity capital for buying a car. Pros and cons

The day before, Russian Prime Minister Dmitry Medvedev instructed the Minister of Labor Maxim Topilin , the Minister of Industry Denis Manturov and the Minister of Finance Anton Siluanov to consider the possibility of spending maternity capital on the purchase of a car by February 12, 2020. Let us note that similar proposals have been made before: since the summer, the State Duma has been considering a corresponding bill prepared by the Legislative Assembly of the Rostov Region. Today, when the domestic car market is in a deep crisis (in October, sales of new cars decreased by 9.9%), the initiative has regained its relevance. Will such a decision affect sales dynamics? And is it wise to spend maternal capital on buying a car? AiF.ru addressed these questions to market analysts and public experts.

News on the topic Golodets considers it inappropriate to spend maternity capital on a car

Mikhail Kuzmin, financial analyst at the Investkafe business intelligence agency : “This is not a very good initiative, in my opinion. Maternity capital is a resource for long-term goals, such as buying an apartment or educating a child. It is somehow incorrect to spend it on purchasing a car. If only because maintaining a car places an additional burden on a large family. Moreover, this will not help our car market: firstly, there is still not enough money to buy a car, and secondly, few people will want to spend it like that.”

According to the expert, in order to effectively help the car market, the state needs to decide on a policy regarding personal transport, which today looks contradictory. “On the one hand, we are seeing a desire to help the auto industry through various government programs, such as the recycling program. On the other hand, a targeted policy is being pursued to reduce the attractiveness of personal transport: the introduction of paid evacuation, an increase in fines and transport taxes. The best help for the auto industry would be to soften this policy,” Kuzmin noted.

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Vladimir Sokolov, chairman of the interregional public movement “Union of Pedestrians” : “This is a very good initiative, since maternity capital today is extremely limited in use, and until the opportunity arises to invest it somewhere, everything can change a lot. For example, due to inflation, as it is now. That is, this is a legal opportunity to cash out money and invest it in something material. Moreover, a car in a family with small children is far from useless.”

Article on the topic

Cancellation of maternity capital. Pros and cons

Pyotr Shkumatov, coordinator of the social movement “Society of Blue Buckets” : “More than a reasonable step in conditions when the car market is going down. For us, the crisis in the market means job cuts in large cities - St. Petersburg, Kaluga; wherever cars are assembled. Then, a car is a necessary thing in a family with two or more children. I think parents with many children will agree with me. The reality is that people today cash out maternity capital using various gray schemes in order to buy a car for the family. If this can be done legally without losing money, citizens will only benefit from it.”

Analytical agency “Avtostat” : “Such a measure could have a positive effect on the Russian automobile market, which is experiencing a decline. In the current conditions, especially against the backdrop of rising car prices, it can be very effective in terms of increasing consumer activity. First of all, VAZ cars, the cost of which just fits into 450 thousand rubles (this will be the size of maternity capital in 2020), and some budget foreign cars assembled in Russia will benefit from this.”

Prolonged dive: the crisis will force automakers to return to imports

More details

Let us remind you that the maternity capital program has existed since 2007. Its goal is to provide financial support for women who have given birth or adopted more than one child: after three years, a woman has the right to receive a certificate for a certain amount (in 2014, its amount was 429 thousand rubles). This money can be used to pay off mortgage loans, form the funded part of a labor pension, and also pay for children’s education.

Continued: How to check a car before purchasing for legal purity →

Justification for the need to adopt the bill

Since the beginning of the program to provide maternity capital to citizens for the birth (adoption) of a second and subsequent children, only half of those who applied for it have used it.

More precisely, by 2020 this figure was 54.3% of the total number of families eligible for a certificate.

Thus, 46.7% do not consider the conditions prescribed in the legislation to be relevant. Their certificates gather dust on shelves among other documents. It is believed that this circumstance is due to the following considerations:

• families do not need targeted money (provided for);
• some people need apartments, but they do not have the ability to pay a mortgage (there is not enough housing certificate);
• There are objective difficulties in implementing the provisions of the law.

Attention! The low level of utilization of state support funds for families with children is also due to the fact that it can be spent upon the child reaching the age of three (there are exceptions).

That is, some families who have received a certificate cannot yet put it into practice.

What can you spend your maternity capital on?

According to current legislation, budget money can be spent for the following purposes:

• improvement of living conditions, including the acquisition, construction, reconstruction of residential premises;
• ensuring children's education (payment for institutional services);
• purchase of special means for disabled children (from 0 years);
• making a contribution to the funded part of the mother's pension;
• monthly payments for the 2nd child.

Attention! Matkapital for the first mortgage payment is also allowed to be used from the very birth of the child for whom it is given.

In addition, together with it, it is allowed to receive other types of assistance for the purchase of housing within the framework of government programs.

Practical development of maternity capital for the stated purposes

In 2019-2020, a certificate is issued in the amount of 453,026 rubles. This is clearly not enough to improve living conditions. The apartment costs much more. Therefore, the family must have savings or a regular source of high income to pay the mortgage payments. In addition, not all banking institutions accept the certificate.

There are also questions regarding other purposes of using state support funds. They are:

1. Educational services under the basic program in state and municipal institutions of Russia are provided free of charge. This reduces the level of referral of certificates for children's education.
2. Most educational institutions that provide services on a commercial basis do not want to get involved with the budget. The certificate is not accepted as payment (you need to account for government money).
3. The mother's pension is a deferred need. Citizens are having children at an age when they are not yet thinking about old age. Therefore, they are in no hurry to invest the certificate in pension savings.
4. In general, in Russia, only 3% of families used maternity capital for purposes other than purchasing housing.

Important! The inability to invest the required funds for the benefit of the family pushes citizens to look for ways to cash them out. This leads to the initiation of criminal proceedings against them under the article of fraud.

The main goals of managing maternal capital

In 2020, maternity capital is also provided to families in which the first child was born (or was adopted). The purposes for which MSC can be spent are clearly regulated by Law No. 256-FZ. Clause 3 of Article 7 specifies what exactly the family has the right to spend maternity capital on:

• Improving living conditions.
• Children's education.
• Mom's funded pension.
• Purchasing goods and services for disabled children.
• Registration of monthly payments for children.

As you can see, the list is closed. And buying a car using federal funds is not provided. The government has repeatedly considered various bills on this issue. But none of them was approved; all initiatives were rejected. Perhaps something else will change in the future. But in 2020, it is not allowed to spend federal maternity capital on a car.

Read: How to get maternity capital for a mortgage in 2020 - what documents are needed

History of legislative initiatives on the use of maternal capital for the purchase of a car

It should be noted that this topic has been used in the political struggle among Duma parties since 2009. It affects a large part of the active electorate, and therefore is quite actively exploited to attract public attention:

1. The first such bill was submitted to the State Duma in August 2009. However, the initiators violated Part 3 of Art. 104 of the Constitution of the Russian Federation. They did not attach the Government's opinion on this issue to the draft.
2. Already in December of the same year, a new bill was registered (No. 302723-5). Its essence was to amend the legislation to allow the purchase of domestically produced cars for capital. The government did not support the document. His arguments concerned the impossibility of registering property for the entire family (parents and minors). This could infringe on the rights of one of the parties. As a result, the draft was rejected in the first reading in February 2011.
3. The next attempt to allow the insertion of a certificate into vehicles occurred in August 2014. On the 5th, bill No. 583192-6 was registered. He didn't even make it to the first hearing. The document was “rejected” at the stage of preliminary study, as not meeting constitutional requirements, as well as State Duma regulations.

Pros and cons of investing a certificate in a vehicle

The positive and negative aspects of this initiative are constantly discussed among legislators. There are also debates about it in society. In general, it is noted that the advantages of the bill cannot be denied. They are:

1. facilitating the movement of parents raising children in urban environments, including to locations:
2. children's educational institutions;
3. hospitals;
4. families living in remote regions will be able to move more often and more freely to regional and district centers;
5. parents will have additional sources of income, which is important in times of crisis;
6. This measure will have a stimulating effect on the domestic car market.

At the same time, the opinions of critics also cannot be ignored. The government considers the main risk to be misuse of budget funds. It can be implemented in the following ways:

Government decision to support domestic car manufacturers with materiel capital

Despite numerous appeals from citizens in favor of investing the certificate in motor vehicles, the Government of the Russian Federation has not supported a single bill.

In 2020, the issue of supporting the domestic automaker with budget money was discussed. As a result, they decided to allocate subventions in the amount of 25 billion rubles. Matkapital was not included in the volume of financing for the auto industry.

Conclusion. Work to defend the rights of certificate holders to expand the intended use of their funds continues.

Regional policy

It is worth noting that in some regions of the Russian Federation there is the possibility of purchasing vehicles for capital. But we are talking specifically about the regional MSK, which most often applies to the birth and/or adoption of 3-4 children.

In which regions can you purchase a vehicle using MSC funds:

• Kaliningrad region (durable items, including cars),
• Kamchatka Territory (car or minibus),
• Novosibirsk region (motor transport),
• Oryol region (motor transport and (or) agricultural machinery),
• Tula region (domestic vehicle (passenger car with engine power up to 200 hp (up to 147.1 kW) inclusive, bus with engine power up to 200 hp (up to 147.1 kW) inclusive),
• Leningrad region (vehicle provided that the family has a disabled child or the number of children is from 5),
• Republic of Sakha (Yakutia) - (vehicle or agricultural machinery),
• Rostov region (possibility of purchasing a vehicle by transferring MSC funds to the bank account of the selling organization or individual selling the car).

We describe typical ways to resolve legal issues, but each case is unique and requires individual legal assistance.

To quickly resolve your problem, we recommend contacting qualified lawyers on our website.

Where can you buy a car with maternity capital?

Currently, purchasing a car using local capital is allowed in a few regions. In particular, these include:

• Kamchatka Territory - 6th article of the regional law No. 615 of 06/06/2011;
• Kaliningrad region - 7th article of regional law No. 17 of July 11, 2011;
• Oryol region - 8.1 article of regional law No. 350-OZ dated 10/02/2003;
• Novosibirsk region - 6th article of regional law No. 125-OZ dated September 30, 2011.

In some regions, maternity capital can be spent on a car only under certain conditions. For example, in the Leningrad region this is allowed if there are five or more children in a family, or if parents with many children are raising a disabled child. And in the Jewish Autonomous Region, such spending of funds is permissible only if one of the children has a disability. In these cases, a medical certificate confirming the special status of the child must be attached to the package of documents.

In several constituent entities of the Russian Federation, regional maternity capital is allowed to be spent at the recipients’ own discretion, including on a vehicle. In particular, freedom of choice is provided to parents with many children living in the Kaluga and Arkhangelsk regions, in the Chukotka Autonomous Okrug.