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Revived German EV Subsidy Fuels Buyer Rush and Steep Deals, Strains Auto Dealers

Trade groups urge rapid implementation to resolve leasing and administrative snags.

Overview

  • Online brokers Meinauto.de and Carwow and the ZDK report a sharp jump in EV inquiries within days of the announcement, with requests in some cases multiplying severalfold.
  • The program offers €1,500 to €6,000 per purchase based on vehicle type and household income, and applications are filed after registration, creating pre-financing hurdles for leasing.
  • Manufacturers and dealers are stacking incentives with the subsidy, including a Dacia Spring offer that can drop to €5,900 and a Citroën ë‑C3 promotion that matches the state grant for up to €12,000 off.
  • Dealers warn of squeezed margins and falling used‑EV residual values, with smaller independents seen at particular risk as consolidation accelerates and profitability erodes.
  • Critics such as Ferdinand Dudenhöffer question the efficiency and fairness of the scheme and caution it may benefit low-cost imports, while experts advise against a used‑EV subsidy due to legal and market-distortion risks.