Since January 1, 2023: Reduced funding for fully electric cars - plug-in hybrids are no longer funded

In December 2022 there was still a real boom in buying electric cars. One reason for this may have been the expiry of the high subsidies for fully electric and hybrid electric cars. Since January 1, 2023, the environmental bonus is now only EUR 6,750 instead of the previous maximum of EUR 9,000. The purchase premium for plug-in hybrids has been completely eliminated. And in 2024 there will be another level of reduction.

The background to this is the new "Guideline for promoting the sale of electrically powered vehicles", which the Federal Ministry of Economics and Climate Protection published on December 9, 2022 and which came into force on January 1, 2023. After that, only the purchase (purchase or leasing) of a purely electrically powered vehicle with a battery or fuel cell will be subsidized by the federal government and the manufacturers. Plug-in hybrids that are externally chargeable are no longer supported.

Reduction of the environmental bonus in several steps

E-cars with a purchase price of up to 40,000 euros net have only been subsidized by the state with 4,500 euros (previously 6,000 euros) since the beginning of 2023. If the vehicle costs between 40,000 and 65,000 euros, it is now 3,000 euros. In addition, there is the manufacturer subsidy, which is half the environmental bonus. Vehicles that are more expensive than EUR 65,000 are not funded. However, this was also the case before.

A special feature from September 1, 2023 will be that only private individuals will be able to apply for the environmental bonus. This is expected to result in companies and other organizations still taking the bonus with them through purchases through August.

There will then be a further stage from January 1st, 2024: From then on, e-cars eligible for funding may cost a maximum of EUR 45,000 net. The maximum environmental bonus will be EUR 3,000; the vehicle manufacturer adds up to EUR 1,500. With this amendment, too, the application may only be made by private individuals.

A list from the BAFA (Federal Office of Economics and Export Control) shows the eligible vehicles for which the car manufacturers are obliged to contribute to the financing of the environmental bonus.

Used and leased vehicles

Used electric cars are also eligible. As long as the vehicle does not have more than 15,000 km on the odometer and has not previously been funded, a maximum funding amount of EUR 4,500 currently applies for vehicles with a net purchase price of up to EUR 65,000. The date of the first registration of the vehicle must not be older than one year. And in addition, the used vehicle must not have already been funded by the environmental bonus.

The bonus also applies to private and commercial leasing. The exact amounts are graded according to the term. The customer initially advances the federal government’s share, but can have this refunded to BAFA with the premium application. The leasing of new vehicles (and young used vehicles) is only subsidized for a leasing period of at least 12 months. However, the full subsidy only applies to leasing contracts with a term of 24 months or more.

How is the subsidy for e-cars applied for?

The application for funding is submitted via the BAFA online site. You have one year to do this after approval. All documents must be submitted electronically. It is not possible to send documents by email.

Buchbinder Sale offers its business customers - dealers and tradespeople - the opportunity to bid on young and older used vehicles online via its e-auctions. The proportion of e-vehicles is also increasing. Business customers have to see for themselves or their customers which vehicles can still benefit from the environmental bonus and manufacturer support. In a phase of constantly changing subsidy conditions, it is important to catch the right moment to buy or lease an electric vehicle. With its e-auctions, Buchbinder Sale creates an opportunity for dealers and tradespeople to adapt flexibly to market requirements.