Electric cars subsidised by German taxpayers end up on foreign roads

Electric cars subsidised by German taxpayers end up on foreign roads

https://reddit.com/r/electricvehicles/comments/x619hl/electric_cars_subsidised_by_german_taxpayers_end/
Recoil42
https://www.ft.com/content/e599a283-4456-483e-9bb0-cf1de5495a0e


Electric cars subsidised by German taxpayers end up on foreign roads



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6 thoughts on “Electric cars subsidised by German taxpayers end up on foreign roads

  1. Either by incompetence or malice, the author omits that there’s a vibrant industry of car exporting in Germany, which works both for new cars and for used ones, and includes all sorts of vehicles. Even individuals all the way from southern Europe go there to buy used ICE cars. I’m honestly surprised that 85% of EVs (6/7) are still there after 10 years. This must reflect the current difficulties in buying new ones.

    The 10 years is also relevant. If a car is used but relatively new it may be taxed as new on the receiving country, but after so many years or so many kilometers that won’t happen. So it’s not a coincidence that they moved the bar so far out. Here are the VAT rules:

    https://taxation-customs.ec.europa.eu/buying-and-selling-cars_en

    So when someone like me can point such obvious things out, yet they are missing from the article, I can only guess it’s indeed a bad “journalist”, either out of malice or incompetence.

  2. Yea so 10% are being sold to other EU countrys. How is this a Problem?

    When a Car is sold for 70000€ germany collects 13.300€ Tax on the Sale while granting a 4500€ Subsidy. If anything the Countrys the Cars are sold to are missing out on revenue…

  3. [Mirror here:](https://archive.ph/yLmse)

    >Of the 890,000 electric cars registered in Germany over the past 10 years, the vast bulk of which were bought with grants, just 756,517 remain in the country, according to a study of official data.
    >
    >While a small number of the missing cars will have been taken out of service, most of them have been sold to drivers in neighbouring countries at a profit, according to two leading industry figures.
    >
    >“By the time the one millionth new battery electric passenger car is registered later this year, close to one-fifth of those cars would have left German roads during the last decade,” said Matthias Schmidt, a Berlin-based analyst who carried out the research.
    >
    >“The loser is the German taxpayer, who is indirectly subsidising clean air in cities outside of Germany.” 

    Pretty easy to respond “oh boo hoo, clean air!”, and I’m sure some will, but it shows a real weakness of these kinds of incentives.

  4. Assuming no loss, no one moving out (i.e. German resident buys with incentives, and then later moves outside Germany), the worst case scenario is 15% of subsidies registered in a foreign jurisdiction. It’s as close to 1/5 as it is 1/10 (i.e. “just over 1/10”).

    One has to assume some total loss, and up to 1 million people migrate from Germany a year. That’s alone a 1.2% loss rate. Throw in perhaps 0.5% attrition rate (i.e 0.5% of EV are written off a year which seems reasonable based on the young age of the fleet and typical total loss rates) and you’re not far from explaining almost the entire discrepancy.

    While migration and replacements would account would reduce the loss rate, if Germany has good incentives, EV adoption would be expected to be higher and thus migrants into Germany would be less likely to own an EV, than a German leaving Germany would.

  5. I found out when I received my Zoé (New) here in Switzerland from a EV specialist garage that it was a German-spec car. It had 9km on the odometer. I got a steal of a deal and now I know why…

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