Buying an electric car in france: how government aid is changing

THE CHANGES COME AS THE GOVERNMENT ALSO ANNOUNCED THAT THE ‘SOCIAL LEASING’ €100 SCHEME WAS CLOSED FOR 2024 Government financial help to buy an electric car in France has changed, including

a reduction of up to €1,000 aid and the ending of aid for a second-hand zero-emissions combustion vehicle. The changes were confirmed in a decree in the _Journal Officiel_ on February 13,

and came into force on February 14. CHANGES TO THE _BONUS ÉCOLOGIQUE_ (ECO-FRIENDLY PAYMENT) The _bonus écologique _has been reduced by €1,000 for half of eligible households. The decree

states that the “maximum amount of the ecological bonus applicable to the purchase of new passenger cars and light vans for households in the five highest income deciles has decreased by

€1,000”. An ‘income decile’ refers to the income bands used to calculate eligibility for the scheme, and is based on the last taxable income declared on the household’s collective income tax

return. This reduces the maximum possible amount payable, for households with a reference tax income per unit of more than €15,400: * From €5,000 to €4,000 for the purchase of a new

electric car * From €6,000 to €5,000 for a new electric van. The maximum amount of aid for the purchase of a new electric car remains unchanged, it still stands at €7,000 for households with

a taxable income per unit of less than or equal to €15,400. A unit refers to the number of people in the household; for example, the first adult is one unit and the second is half a unit.

The €1,000 payment for the purchase of a second-hand electric car or van has also been removed. The maximum financial assistance for the purchase of new private cars and vans for legal

entities has also been reduced by €1,000. The new decree instead provides for a financial bonus for second-hand push bikes sold by professionals, and extends the aid increase for buying

bikes, which was first introduced in August 2022. The amounts now are: FOR A NEW 100% ELECTRIC CAR, COSTING UP TO €47,000 * €4,000 (up to 27% of the total cost) * €7,000 for households with

an income less than €15,400 per unit FOR A NEW 100% ELECTRIC SMALL VAN * €5,000 (or €3,000 for a sole trader individual) (up to 40% of the total cost) * €8,000 for households with an income

less than €14,089 per unit FOR A SECOND-HAND ELECTRIC CAR OR VAN WITH ZERO EMISSIONS CHANGES TO THE _PRIME À LA CONVERSION_ (CONVERSION BONUS) The conversion bonus (_prime à la conversion_)

used to be available for people who wanted to exchange a combustion vehicle for a Crit’Air 1-compliant model, whether combustion or electric. It is now only available for the purchase of a

second-hand electric or hydrogen vehicle (that is also Crit’Air 1-compliant). It is no longer possible to use this scheme for the purchase of a new combustion car or van, even if it is

Crit'Air 1-compliant. The maximum possible amount has also dropped by €1,000. The amounts are now: CARS 100% ELECTRIC OR HYDROGEN-POWERED, UP TO €47,000 * Very modest households (income

less than €7,100, or €15,400 for ‘heavy drivers’*): €5,000 (up to 80% of the total cost) * Modest households that are not ‘heavy drivers’*, with income less than€24,900 per unit: €1,500

USED CRIT'AIR 1 COMBUSTION (FIRST REGISTERED AFTER JANUARY 1, 2011) * Very modest households (income less than €7,100, or €15,400 for ‘heavy drivers’*): €1,500 (up to 80% of the total

cost) * Modest households that are not ‘heavy drivers’*, with income less than €15,400 per unit: €500 SMALL VANS 100% ELECTRIC OR HYDROGEN-POWERED, UP TO €47,000 * Very modest households

(income less than €7,100, or €15,400 for ‘heavy drivers’*): €5,000 for class I, €7,000 for class II, €9,000 for class III (up to 40% of the total cost) * Modest households that are not

‘heavy drivers’*, with income less than €24,400 per unit: €4,000 for class I, €6,000 for class II, €8,000 for class III (up to 40% of the total cost) USED CRIT'AIR 1 COMBUSTION (FIRST

REGISTERED AFTER JANUARY 1, 2011) * Very modest households (income less than €7,100, or €15,400 for ‘heavy drivers’*): €3,000 (up to 80% of the total cost) * Modest households that are not

‘heavy drivers’*, with income less than €15,400 per unit: €500 _*THE TERM ‘HEAVY DRIVERS’ REFERS TO ‘GROS ROULEUR’, DEFINED AS:_ * _A household whose journey between home and work is more

than 30 kilometres, which they must travel using only their own vehicle_ * _Or an individual who must travel more than 12,000 kilometres a year for business, using their own vehicle._

RETROFIT INCENTIVE EXTENDED TO PLUG-IN HYBRIDS The decree also extends the retrofit bonus (la prime au rétrofit) to one-time combustion vehicles that have been converted into plug-in

hybrids. Before now the aid was only available for conversions from combustion to 100% electric. The retrofit bonus can be worth up to €6,000 - or €7,000 for a person living within a

low-emission zone (zone à faibles émissions, ZFE) - with a reference tax income per unit of more than €7,100, and less than or equal to €15,400. FINE FOR NON-COMPLIANCE WITH THE ELECTRIC CAR

LEASING SCHEME The decree also ratifies the suspension of the aid scheme for leasing electric cars, after the government announced that the ‘social leasing’ scheme - which launched in

December 2023 - had exceeded its yearly target by more than 50%. The scheme initially planned to make 20,000-30,000 vehicles available for 2024, but by February 13 it had already received

more than 50,000 orders and was forced to close. READ MORE: €100-A-MONTH ELECTRIC CAR SCHEME CLOSED FOR 2024 DUE TO DEMAND It will restart at the end of the year, and begin taking orders for

2025, the Elysée confirmed. The government hopes to be able to offer 80,000 vehicles - at least - by 2025. The new decree now bans the subletting of vehicles ‘purchased’ using leasing aid

during the period of the leasing contract. It also introduces a €1,500 fine if the leasing participant fails to comply with the conditions for keeping the vehicle, or the ban on subletting

it. RELATED ARTICLES LEASE AN ELECTRIC CAR IN FRANCE FOR €100 A MONTH - WHO CAN BENEFIT? RENAULT TO LAUNCH ELECTRIC CAR COSTING LESS THAN €20,000 DRIVING IN FRANCE: IS IT TIME TO SWITCH TO

AN ELECTRIC CAR?