Economist on the new electric car premium says very few can afford it

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Economist on the new electric car premium says very few can afford it
Photo: Christine Olsson/TT

From March 18, it will be possible to apply for an electric car premium. But few will be eligible and even fewer will be able to afford to buy or lease an electric car. "Unfortunately, I think there will be very few," says savings economist Sharon Lavie.

The maximum you can receive is a total of SEK 64,800, divided into SEK 1,300 per month for a maximum of 36 months (SEK 46,800), plus a start-up grant of SEK 18,000.

But to get the maximum amount, the person applying for the electric car premium must earn only half of the average income; in 2025 the average was just over 40,000 SEK before tax. This means an income of around SEK 20,000 per month before tax. To get the SEK 46,800 support, the salary must be at most 80 percent of the average income.

There are also a number of other restrictive rules. For example, the applicant must live in a rural municipality or in an area where there is limited access to public transport.

Very, very few

But how many will be able to afford it?

"That's the big question. I suspect there will be very, very few," says Sharon Lavie, savings economist at Lendo.

Around 800,000 households are estimated to meet the set criteria. The Swedish Environmental Protection Agency has estimated that 100,000 households may apply for the premium.

But it's a number that Sharon Lavie finds very hard to believe.

"They haven't checked whether a family like this would even have the opportunity to save up for a cash contribution, or be granted a loan if needed. Do they even have the opportunity to lease or buy a car with the support?" she says.

Doesn't hit right

Several referral agencies are also on the same track. The support is designed to reach households that are struggling financially.

Trafikanalys, the government's own expert authority, assesses that there is a risk that this particular group will not have the opportunity to take advantage of the support, pointing out, among other things, the difficulty in passing credit checks.

The rather complicated rules may cause many people to forgo car purchases "out of concern that they will not be able to take advantage of the premium after they have bought an electric car," writes Trafikanalys.

The scrapping bonus for those who bought a new electric car recently fell flat and can almost be described as a fiasco. Just over 2,000 applications were made in just over a year, far short of the government's goal.

A thumbtack

Will something similar happen with the electric car premium?

"I suspect that only a handful will be able to qualify for all this money at all," says Lavie.

But for those who still go all the way - it's possible to get a good deal. There are used electric cars for under 200,000 SEK.

Trafikanalys is positive that the support also applies to the purchase of used electric cars, "which will likely be the most common choice when the premium is applied for."

The following criteria apply to be able to apply for an electric car premium:

Location: You must live in a rural municipality or in an area where there is limited access to public transportation.

Income: No one in your household may have an income so high that they pay state income tax. The household's total income may not exceed 80 percent of the average income.

Current car: No one in the household may already own an electric car or plug-in hybrid.

What cars are we talking about?

It must be a pure electric car (not a hybrid).

The car can be new or used.

The car may cost a maximum of 450,000 SEK.

The premium applies to both purchase and leasing.

Amount of support:

You will receive SEK 1,300 per month for a maximum of 36 months. This will be a total of SEK 46,800 for the entire period. In addition, you can receive an extra start-up grant of SEK 18,000 if the household's income is less than 50 percent of the average income.

Source: Swedish Environmental Protection Agency

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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