Environmental bonus for used e-cars

Not only new e-cars are funded. There is also a subsidy from the state and manufacturers for used vehicles. The e-car bonus has been available not only for new cars since last year, but also for used cars with a maximum of one previous owner. However, the criteria are strict and complicated, and the number of vehicles available is still relatively small. Nevertheless, a purchase can be worthwhile.

How big is the promotion?


In contrast to new cars, it makes no difference in the subsidy amount for used cars whether the BAFA list price of the basic model is below or above 40.000 euros. All buyers receive the same flat-rate amounts: when buying a pure e-mobile it is 5.000 euros, when buying a plug-in hybrid it is 3.750 euros. Graduated values ​​apply to leasing; the full amount is only granted from a contract period of more than 23 months.

Can the environmental bonus be combined with other funding programs?


Yes. However, these are primarily aimed at companies and municipalities, private individuals do not benefit from them. In detail, these are currently: "Immediate program for clean air", "Fleet exchange program for social and mobile", "Funding guidelines for electromobility", "Funding guidelines for market ramp-up NIP2", "Climate protection offensive for SMEs", "Business-oriented electromobility - WELMO" and "Climate protection guidelines for companies".

Which used cars are funded?


As with new vehicles, the Federal Office of Economics and Export Control (BAFA), which is responsible for funding, only pays for used vehicle models that are on its positive list for new vehicles. It lists e-mobiles, fuel cell cars and plug-in hybrids with a maximum net list price of 65.000 euros. More expensive cars are not subsidized. The list can be found on the authority's website.

What other criteria are there?


The most important prerequisite: no state premium has yet been paid when purchasing a new car. The first holder may not have used the environmental bonus or any other BAFA funding program - theoretically not in other countries either. There are also other criteria: The used vehicle must have been registered for the first time after November 4, 2019, have not been registered for longer than twelve months and have driven a maximum of 15.000 kilometers.

Which vehicles do the criteria apply to?


First and foremost, demonstration vehicles from car dealers fall into the group of eligible second registrations. The extension of the premium to used cars was written into law at the time, primarily at the initiative of industry associations - their members were afraid that they would no longer be able to sell their demonstration car without high losses after the end of use in view of the heavily subsidized new e-cars. In addition, there are used electric vehicles from other EU countries, from rental car providers and from the manufacturer pools. Before the official market launch, they often tested the new drive technology with large test fleets for suitability for everyday use. These cars are now also looking for a new owner.

How big is the offer?


Small but growing. Also because more and more new e-models are coming onto the market and the fleet of demonstration vehicles is growing steadily. According to rough estimates, there are currently at least a five-digit number of cars on the used market that meet the BAFA criteria.  

How expensive can a subsidized vehicle be?


The purchase price of the used e-car may not exceed 80 percent of the original gross list price of the new vehicle. The gross manufacturer's share of the environmental bonus is deducted from this. The purchase price may not exceed this threshold. An example: For a vehicle with a gross total price of 47.000 euros, 37.600 euros are applied after deducting the loss in value. Of this, the 2.975 euros from the manufacturer's share of the subsidy go (gross: 2.500 euros), so that in the end 34.625 euros remain. The used vehicle is only eligible if the applicant has paid a maximum of this gross amount for the vehicle.

How do I find serious offers?


Where there is money from the state, subsidy fraud is not far away. According to ADAC and DAT, there are definitely black sheep who want to collect unjustified funds. Not among the dealers, but among the free providers. The aim is usually to pretend to BAFA that the sales price is lower than the actual sales price. With double bills, for example. Car buyers should be on their guard, in case of doubt they are liable to prosecution if they are involved.

What evidence do I need for the application?


Evidence is the most time-consuming part of the premium application because an independent expert opinion is required in every case. Anyone who has the new car invoice needs it to have the mileage confirmed at the time of purchase. It must not be more than 15.000 kilometers. If the original invoice is not available, a price determination report is also required, which may only be issued by the non-partisan Deutsche Automobil Treuhand (DAT). The mileage alone, however, can also be certified by other experts.

What are the costs for an expert opinion?


DAT wants 29 euros for its new price and mileage report. In addition, there are costs to travel to or from the expert. The time required for checking and creating documents is around 20 minutes. The costs and duration for the pure mileage certificate are likely to be in a similar range for other experts.

How do I submit the application?


You can only apply to BAFA after the vehicle in question has been registered. It can only be done online at www.bafa.de/umweltbonus, entries sent by post will not be processed. In addition to the purchase invoice or the leasing contract, the authorities require proof of the list price and a declaration of mileage.

When can I sell the used electric car again?


After purchase, the vehicle must be registered in Germany for at least six months for the applicant in the Federal Republic of Germany. Otherwise, the premium may have to be refunded.

Is it worth buying used?


The most important question at the end: is the second-hand e-car worthwhile? That depends mainly on the used car price. It may not be higher than 80 percent of the list price, but of course any lower. This compensates for the slight disadvantage with the maximum funding, which can amount to around 10.000 euros (6.000 euros federal portion) for new cars. A second aspect could also play a role: many new e-cars, especially those that are in high demand, still have long delivery times. A used model, on the other hand, is immediately available.

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