Netherlands confirms promotion of new and used electric cars

Posted by Christian Pfäffli on

The Dutch government has confirmed the rumours about the planned purchase premium for new and used electric cars and has given some details. According to the rumours, there will be 4000 Euros subsidy for the purchase of a new and 2000 Euros for the purchase of a used electric car. It is planned that private individuals will be able to apply for the subsidy from July 1 if they buy an electric car or lease it privately. Currently, the Netherlands is the only country in Europe to introduce a subsidy for the purchase or leasing of used electric cars.

With the subsidy, the Dutch government is implementing an agreement from the climate agreement. The goals of the climate agreement include that 100 per cent of new car sales in 2030 will be electric vehicles and that there will be a fully-fledged market for used electric cars by 2025. At that time, consumers will also find that the price per kilometre driven (also known as the total cost of ownership or TCO) is lower than the price of fossil-fuelled combustion engines, according to the Ministry of Infrastructure and Water Management. In order to receive the subsidy for a used car, the battery must first be checked for its condition.

"An electric car must be accessible to many more people than just business people. There are more and more different models on sale and fortunately, they are becoming cheaper and cheaper to buy. Nevertheless, many potential buyers are still struggling with the purchase price. With the new subsidy, I would like to lower this threshold, both for new and used cars. Especially for the latter, it is also important to have more certainty about the condition of the battery. - Stientje Van Veldhoven, Minister for the Environment and Housing

The program focuses on electric cars in the compact and mid-sized classes. For this reason, only vehicles with a purchase price (for used cars, the new car price applies) of between 12,000 and 45,000 euros are eligible, and a minimum range of 120 kilometres is also required. Higher-priced e-cars and hybrid cars are explicitly excluded from the support measure. The car must also be registered in the Netherlands for several years to the same owner. Those who resell their electric car within three years must repay part of the subsidy. Similarly, in the case of leasing agreements where the subsidy is paid in monthly instalments, the subsidy is discontinued if the agreement is terminated within four years.

In order to prevent misuse, the subsidy can only be obtained by purchasing or leasing through a recognised company; each person can also apply for the subsidy only once. Since the price of new cars is currently falling steadily, the amount of subsidy for new cars will also be steadily lower, according to the draft law. For used cars, however, the subsidy will remain at 2000 euros.

More battery safety for used cars
In addition to the purchase price, uncertainty about the battery's durability is an obstacle to purchase for many interested parties. Manufacturers already give a multi-year warranty on the battery in new cars. For used cars, the battery is covered by the guarantee of the car association BOVAG (BOnd Van Automobielhandelaren en Garagehouders). In order to offer buyers of used electricity more security, BOVAG wants to work on a uniform standard for battery testing.

A consultation phase will initially run until the end of March, during which the government will accept ideas or comments on the planned subsidy measure - these may lead to an adjustment of the law before it is finally adopted and published, probably in May or early June.

Source: Electrive - Netherlands: Premium for new and used electric cars // Dutch Ministry of Infrastructure and Water Management - Subsidie brengt elektrisch rijden dichterbij


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