Drug subsidy - the subsidized electric car boom

The purchase of electric cars is strongly encouraged. This is good for metropolitan areas, but also dangerous. Because subsidies are a double-edged thing. They are dangerous and they create dependencies. Dealing with them intelligently would be the challenge for the state. Only then will a subsidized boom turn into a sustainable change.

New on the market and already at dumping prices
New on the market and already at dumping prices

Opel Mokka-e for € 49,00

Of course, you rub your eyes in amazement when you're allowed to drive a new electric car for € 49 a month. A net offer for commercial customers. Without down payment and including maintenance. 24 months, 10.000 kilometers per year. The secret behind the fabulous offer is the state premium. € 6.000 from the tax pot is the down payment for the Opel Mokka-e. So it's incredibly cheap to drive.

That is strange. The Mocha-e is fresh on the market and is already being thrown into the cheap box. Not a good sign, neither for the manufacturer nor for the model. But Opel is not alone with the offer. There were manufacturers who were even cheaper.

The bottom line was that a French provider gave money back. For short-term leasing with 12 or 18 months - thanks to the generous subsidies. Of course, such offers attract. The manufacturer gets his electric car from the farm, the customer a new car, which he can use almost free of charge. I consciously exclude whether the environment also benefits.

Drug subsidy

All of this is reminiscent of China as a model. For almost a decade, the Beijing administration has been zigzagging about electric car subsidies. This encouraged abuse and led start-ups to produce e-cars, approve them and take out subsidies. These vehicles, mostly small electric vehicles, never came on the road. Those were the most extreme and darkest excesses of the subsidy policy.

Net € 49,00 per month for a Mocha-e
Net € 49,00 per month for a Mocha-e

The other outgrowth is that a new electric car brand is making its debut almost every week. With confidence in the ever-bubbling subsidy pot that will somehow straighten the market. Because, and that is the danger, over the years China has become used to it.

Manufacturers expect the subsidy in the long term, as do customers. If Beijing tries to cut funding again or to stop it completely, sales of electric cars collapse brutally. Beijing then always readjusts promptly. Depending on the regional or national level. So far, no one has dared to coldly withdraw customers and the providers of the subsidy drug.

There is a real risk that Germany will do the same as it does in China. That electric mobility will get stuck on the state drip like the junkie on the needle. And that the customer simply refuses to pay more than a small amount a month.

Because he's on drugs and got used to the fact that an electric car is cheap and subsidized.

This is not good. Not for the product that is being canceled. And not fair either. Not everyone can lease a new car and benefit from the publicly funded subsidy. The problem behind the problem is the used electric car. How will you market the € 18 returns in 24 or 49,00 months? What is a used car worth if it was pushed onto the market super cheaply as a new car?

And, the big question, what will a customer be willing to pay for it? Who will not collect a state premium for purchasing secondary marketing. Financing a used Mocha-e will hardly be available for € 49,00 a month without a down payment.

An exciting question!

After all: in Germany politicians reacted quickly. The subsidy for short term leasing has been made evaporated. Full support, plus an innovation bonus, is only available from 23 months onwards. A sign that suggests a sense of reality.

If, in addition to the efforts to get electric cars on the road, you don't want to completely lose sight of the sustainability factor.

8 thoughts on "Drug subsidy - the subsidized electric car boom"

  • Typically, low leasing rates for new cars mean a slight loss of value during the leasing period, so that the car can be sold at a higher price after the end of the lease and the total proceeds amortize the expenses and generate a profit
    .
    A vehicle that shows a higher depreciation, especially at the beginning, will normally not be obtained in a cheap leasing model, because a lower sales price makes it difficult to recover the investment and still make a profit after the leasing.

    In this respect, the low leasing rates for electric vehicles indicate that the leasing providers assume that they will be able to sell the vehicles at a price that is attractive to them after the lease.
    You have to see whether the used car customers will play their part. If not, the lessee could be the loser by being presented with a high final bill. If the terms of the contract do not allow that, the leasing provider has just traded in lemons.

    The down payment is of course subsidized, but in my opinion it remains to be seen whether this leasing model will generally put vehicle prices under pressure.

  • Let's hope that the “drug” subsidy remains - and that Opel has not also put the driver of the mocha under questionable chemical substances. The green SUV is on the left-hand turn at a well-known Hamburg intersection - and unfortunately inevitable in oncoming traffic!

    An e-car on the road as a blatant ghost driver, on the radio you are usually warned, the motto is to avoid a large area. A hidden message from Opel? Or is it just an ignorant photographer who put in an unfortunate Photoshop performance? Clarification uncertain - just like the government's subsidy dilemma.

    No matter how, the picture is chic, the mocha is well presented. Only unfortunately in oncoming traffic.

  • That a corporate board in the automotive industry has ever puzzled over the resale values ​​of the USED cars, I consider to be “impossible”.
    The thinking up there: sell new cars until the (production) lines glow ... that's where they do the business. And that's what counts. I'll be curious how long ...
    Because: dinosaurs only exist as fossils ...
    Nevertheless, all SAABians have a good healthy (!) Last month in 2020!

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  • The crucial question for me is simply what good is a product that has to be pushed and subsidized so that it can survive on the market?

  • I have to come out !! I almost fell for the drug too !!
    My 901 Coupe was at Berma & Co for a few weeks - winter wellness treatment.
    I've been to Barcelona twice in the last few weeks with the 902 Cabrio. Including the entire package of nonsense that the local government has come up with for the bad old cars: pre-registration, daily fee, double parking fee, completely apart from the already almost 7 euro toll each way. We have got used to them over the years.

    Then I wanted to go to Barcelona for the third time in a convertible. Simply swap the cars at Berma. On this occasion I realized that it is not even possible to register for the same day. You can only enter the green zone on the same day in the event of a medical emergency. Then get the punishment one way or the other and can cancel it with the medical certificate. Orwell couldn't have thought of better ...

    I was pissed off, frustrated, and determined to follow the spider into the web. Leasing offers under 100 euros, the down payment financed by the taxpayer - of course I would have got the car in Germany. In addition there would be:
    no toll in Spain, free travel to the city, free parking and a - still - free charging station around the corner.

    But first - yes dear Tom - an espresso. Or as it is called here, Cafe Solo….

    Since I couldn't go into town myself that day, I just called the towing service. Electronics are always a good excuse…. We came to Berma. It only took seconds and the electric car and I were divorced before the wedding. The workshop full of Saabe. Juan with his disarming smile and oil-smeared overalls. My coupe with a refurbished aerokit, polished and with a new sky. I let the door shut, started the engine, and grinned to myself, enjoying the sounds and smells on the way home. Today I spare the reader the nonsense about the setting Mediterranean sun. When I got home my world was all right again ...
    I can also take the train into town if I can't register. My lawyer will take care of the matter itself. Because signing up and paying is one thing. Can't if I want or have to someone else. And doesn't work at all. And my cars stay. As long as I want As long as there are parts. And as long as enjoyment is important in my life and I can afford it.
    I don't want to go into the subject of the environment today… ..The sun has already set….

    Greetings to the community

    The Lizi

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  • Yes, VW advertised the ID3. That you can now give electricity and drive a car without worries. It ran on all channels and is a pretty crude statement if you have the German electricity mix in mind. Once again you can see how under-age VW's classify their customers.

    In general, I think we took the wrong turn for a long time. Politicians should have had the courage to signal that if there is to be a trend reversal, only less consumption will bring something. But that would go against the very foundations of our system, and incidentally also against that in China. The deal is growing wealth, not giving up. That's not how you save a planet.

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  • Incomprehensible!
    What are these half-lives? Also 23 months and then? That is the key question of this great article.

    For this, landscapes are being devastated in the 3rd world. The origin of the energy is still unclear - comes from the socket, therefore ZERO emissions ...

    Sometimes I ask myself whether I am no longer ticking properly myself, or whether something is getting out of hand here. Incidentally, this does not only apply to e-mobility. We are led to believe that we could save the world with Klein Deutschland - ridiculous! The two largest cities in East Asia have as many inhabitants as we do, Africa will double by 2035 at the latest….
    It can no longer be stopped and saved, no matter what kind of cars we drive. But a great business model with justified fear of the coming climate catastrophe, state sponsored. Nothing will change!

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  • Well what's right ?! Let the market decide alone? Or would you prefer to subsidize it? I am not sure about that. But I think it's good that there are such offers as the mocha. The democratization of the electric drive. And the Mocha is a family car. Some cell phone contracts are more expensive. The development has to go further, the acceptance of the electric drive has to grow in mass, otherwise the change will not do anything. An alternative is not desired, for whatever reason.

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