The incoming purchase premium for electric vehicles, spearheaded by Germany’s “black-red” coalition government, is facing a significant shift in scope, potentially extending eligibility to used electric car buyers. According to reports in “Bild”, the Social Democratic Party (SPD) is pushing for the inclusion of pre-owned vehicles within the program, a move intended to broaden accessibility for lower and middle-income households.
Currently slated to launch next year, the subsidy, reportedly valued at €3 billion, was initially envisioned to incentivize the purchase of new electric vehicles. The SPD’s proposal to include used models addresses a key criticism of the scheme – its potential to remain inaccessible to those struggling with affordability. Used electric vehicles often represent a more budget-friendly option, potentially opening up climate-friendly mobility to a wider demographic.
SPD General Secretary Tim Klüssendorf defended the proposed expansion, arguing that “everyone must be able to afford the transition”. He emphasized the program’s objective of facilitating the adoption of climate-neutral mobility, particularly within urban areas where affordability has historically been a barrier.
However, the proposal is not without potential complications. Critics within the automotive industry and even within the coalition have raised concerns about the potential impact on the German and European electric vehicle manufacturing sectors. While Klüssendorf stressed the importance of ensuring these industries benefit from the funding, the inclusion of used vehicles could dilute the direct stimulus effect for new car production, potentially favoring imports over domestic manufacturing.
The move also raises questions about the program’s overall effectiveness and whether it truly incentivizes the uptake of electric vehicles or simply redistributes existing stock. Further details regarding the eligibility criteria and potential limitations are expected as negotiations continue within the coalition government, highlighting the ongoing debate surrounding Germany’s approach to accelerating the electric vehicle transition and ensuring equitable access to its benefits.