Many governments, particularly in Europe, have naturally offered certain incentives for the purchase of electric vehicles in recent years. They wanted to promote environmentally friendly mobility and accelerate the transition to more sustainable transport. The measures were often part of broader climate goals, such as reducing CO2 emissions in general or improving air quality, especially in congested cities.
However, with the increasing popularity of electric vehicles, many countries have had to rethink, sometimes drastically, the enormous financing needs of their subsidy programmes. In times of economic uncertainty, public coffers are usually burdened by other urgent expenses. The removal of government subsidies for electric mobility was understandably seen as illogical or counterproductive by the general public, but especially by those concerned about the environment.
Sustainable solutions for buying a car
Financing plays a crucial role when buying a car, especially when buyers are unable to pay the entire purchase price at once. In recent years, interest rates have typically been between 2 and 7 percent, although those with particularly good credit ratings can often get interest rates in the lower range. In times of rising interest rates, as often occurs during inflationary periods, the terms for car loans become stricter, which can lead to higher interest rates.
Many car dealerships offer special financing offers for their models, sometimes in the form of zero percent financing or particularly low interest rates that are then limited in time. It is important to consider all aspects of financing, including any additional fees, in order to be able to realistically estimate the total cost of the loan.
Deciding between financing and leasing
When you finance a car, you will undoubtedly purchase it after the loan has been taken out. There are no restrictions here for drivers who are on the road frequently. You can drive as many miles as you want or need (for work) without having to worry about additional fees. If you want to customize the vehicle to your personal wishes, financing is also better, as you enjoy much more freedom as the owner.
If you like to drive a new model every few years and want to benefit from the latest technology and higher safety standards, leasing with lower monthly payments is an attractive option. Many offers also include maintenance and service packages. However, you should note that leasing contracts often have mileage limits. Additional fees apply if you exceed the agreed mileage.
Determining the sale value of your old car made easy
First, take the original purchase price of the vehicle. From this amount, you deduct the annual loss in value that a car suffers. After one year, it is 20 percent of the original purchase price, after two years 15 percent, the three years after that 10 percent each and in the five years after that 5 percent in depreciation rate. After 11 years, the annual loss drops to 3 percent.
Also take into account the condition of the vehicle, the mileage and any additional equipment that could affect the value positively or negatively. On average, a vehicle drives around 9321 to 12427 miles per year. Depending on the condition of the vehicle, exceeding this rough guideline can reduce the value by a further 5 – 10 percent of the purchase price. With this knowledge, you can act confidently and self-assuredly in price negotiations in the future.
Electromobility: When is it worth buying | Market situation and competition | How is financing structured – all articles at a glance.
