Automobile leasing players in Luxembourg face a particular problem. The contracts of the first fully electric cars contracted by companies, three or four years ago, arrive at their end. And the rental companies end up with vehicles that they are struggling, for various reasons, to sell profitably.
“At the time, rental companies had set residual values on electric vehicles very advantageous for customers. The sector was pointed out to participate in the emergence and development of electricity. The residual prices were set five years ago, it was necessary to initiate the pump, “says Dominique Roger, president of the Mobiz Federation, which represents the automotive leasing sector in Luxembourg.
Today, professionals come up against a difficult used electric vehicle market. “The first vehicles which returned after rental contract faced an embryonic market where demand is almost nonexistent. Consequence: it is difficult to resell them, and almost impossible in Luxembourg, where the second -hand electric vehicle market is emerging, there is very little request. There are more and more offers and few requests, prices have fallen very low: there are really substantial losses on resale ”, adds Dominique Roger.
Given the current market – more offers than requests – acquiring a used electric car can be a good deal. An event that can help take the plunge soon happens: the AutoCcasiounsfestival 2025 takes place from Monday May 12 to Saturday May 24 inclusive, in the country’s dealerships.
-So for the moment, these used vehicles are mainly exporting, while waiting for the Luxembourg market to mature. “The new market is stimulated by bonuses, the opportunity is little.” For Dominique Roger, demand will be stimulated by the increasingly strong injection of cars on the market by rental companies, and “on the horizon three or four years, it should be better”.
In the revision of aid for the purchase of electric vehicles, the Luxembourg government decided to introduce a premium dedicated to occasions at the end of last year. Since October, it is possible to benefit from an envelope of 1,500 euros, in order to acquire a car over three years old. This aid is subject to the condition of keeping the vehicle at least two years, and that buyer and seller are not part of the same household.
At the same time, the premium for the purchase of a new 100% electric vehicle dropped from 8,000 to 6,000 euros (for those consuming less than 16 kWh/100 km) and reduced to 3,000 euros for a consumption included in 16 and 18 kWh/100 km. Above, more bonus-except for households comprising at least three children-the subsidy is 6,000 euros.
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