Dutch government ditches electrification plans for leasing market

According to the newspaper De Telegraaf, the Dutch climate package will drop the plans for compulsory electrification of the leasing market by 2025. That’s the deadline for the current subsidy scheme. A disappointed Association of Car Dealers (Bovag) says the move will negatively impact the market for second-hand EVs.

As the Dutch government risks losing up to 5 billion euros by the investigated electrification incentive for leasing, internal sources reveal it will drop the proposition altogether. This leaves the Dutch customer with a single incentive; for second-hand electric cars.

But that’s exactly where to find the bottleneck. “One needs accelerated intake of new vehicles to build up a second-hand marketplace,” says Bovag. “Without committed electrification for the leasing market, the incentive for second-hand cars overshoots its target.” Apparently the government feels reluctant to finance the leasing incentive by lifting taxes on private car purchases.

Low interest in leasing BEVs

Today, Dutch leasing drivers enjoy several benefits, like an exemption from circulation tax and a lower fiscal addition. However, the measures, ending over two years, haven’t resorted to strengthening the leasing market's electrification to great lengths.

A recent survey upon request from the Dutch Leasing Association VNA, questioning 500 drivers, showed that BEV buying interest was only at 25%. Moreover, because of inflation, the BEV percentage in leasing for professionals dropped to 25% in 2022 (from 27% in 2021). Because of this low interest coupled to income, VNA stood doubtful about the proposed zero-emission ruling for leasing.

Image Source: Audi