Electric vehicles: the “rebalanced” ecological bonus, the limited scrappage bonus


The ecological bonus for the purchase of an electric vehicle will increase from 5,000 to 4,000 euros for the wealthiest French people, according to a decree published in the Official Journal (AFP/Archives/JOHN THYS)

“Rebalanced” bonus, scrappage bonus reserved for electric vehicles: the government has targeted aid for the purchase of electric vehicles towards the most modest households, to the detriment of the wealthiest and businesses.

The ecological bonus, already reserved for the purchase of electric cars, will increase from 5,000 to 4,000 euros for half of the wealthiest French households, according to a decree published Tuesday in the Official Journal and which will come into force on Wednesday.

The bonus of 7,000 euros for the purchase of an electric car (5,000 euros and the increase already in force of 2,000 euros) is now reserved for people whose reference tax income per unit (which generally corresponds to the annual net income) is less than or equal to 15,400 euros.

The “scrapping bonus”, or conversion bonus, distributed until now in exchange for the purchase of a low-polluting thermal or hybrid vehicle, will only be awarded in exchange for the purchase of an electric vehicle .

The chosen car must cost a maximum of 47,000 euros. These two aids also take into account environmental criteria, which de facto exclude models manufactured in China, such as the Tesla Model 3 or cars from MG and BYD.

“The objective is to continue to socially rebalance the bonus,” indicated the Minister of Ecological Transition Christophe Béchu on Tuesday on franceinfo.

“Last year, out of 1.5 billion in aid, a quarter was for the poorest. Of course, we are cutting back a little in aid for the wealthiest, but the average price of electric cars is decreasing,” underlined the minister.

– “Envelope of 1.5 billion” –

At the same time, the decree ratified the suspension of the “social leasing” system, which for six weeks had been offering electric cars for rental with option to purchase (LOA) from 100 euros per month to the most modest households.

The Elysée announced on Monday the end of this measure for 2024 after having “exceeded” its initial objectives, with more than 50,000 orders validated. The system was completed on Tuesday with the ban on the subletting of these vehicles.

“There will be a second wave at the end of the year or at the beginning of next year. New models will come out at the end of the year. We also want to give ourselves a little time to think about what worked,” he said. added Mr. Béchu.

“Leasing was able to convince low-income households to switch to electric”, while there were still “psychological brakes”, explained the government on Tuesday.

But to “remain within the overall envelope of 1.5 billion” of aid for the purchase of vehicles, it was necessary to reduce or eliminate other measures.

The maximum amount of the conversion bonus, already reserved for the least well-off households, thus falls by 1,000 euros to stand at 5,000 euros.

And professionals can no longer benefit from the bonus for the purchase of a car, but still have access to it for the purchase of an electric van.

The decree also removes the ecological bonus of 1,000 euros which existed until now for used passenger cars and vans.

The price of second-hand models has fallen and “maintaining state support did not seem essential”, explained the government.

© 2024 AFP

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