Ecological bonus: what does it mean?
The environmental bonus represents a major public incentive that will continue in 2023, also benefiting professionals. Its aim is to promote the purchase and use of vehicles with low CO2 emissions.
This initiative is part of France's overall strategy for 2030, aimed at establishing a 100% circular, French electric vehicle industry, with the ambitious goal of producing 2 million vehicles in France by 2030.
This is a public policy measure designed to encourage the use of more environmentally-friendly vehicles.
The ecological bonus is granted under certain conditions:
- The vehicle must be new or used.
- The vehicle must have CO2 emissions below a certain threshold.
- The vehicle must be classified in a certain category.
What are the changes to the ecological bonus for 2023?
The amount of the ecological bonus varies according to the type of vehicle and the household's tax income.
For passenger cars, the amount of the ecological bonus is set at 27% of the acquisition cost, including VAT, up to a limit of €5,000 for private individuals and €3,000 for professionals.
For light commercial vehicles, the amount of the ecological bonus is set at 40% of the acquisition cost, including VAT, up to a limit of €7,000 for private individuals and €4,000 for professionals. For heavy goods vehicles, the amount of the ecological bonus is set at 40% of the acquisition cost, including tax, up to a maximum of €50,000.
The ecological bonus is paid when the vehicle is purchased or leased. It can be combined with the conversion bonus, another financial aid granted by the French government for the purchase of an electric or plug-in hybrid vehicle.
In fact, the ecological bonus is an important measure for the energy transition, helping to reduce greenhouse gas emissions from the transport sector, which is the largest emitter of greenhouse gases in France. In 2022, the ecological bonus supported the purchase or lease of almost 1 million low CO2 emission vehicles.
The new ecological bonus criteria
From October 10, 2023, the ecological bonus for new electric cars will be conditional on achieving a minimum environmental score. This will be calculated in particular by taking into account the environmental impact of the vehicle's manufacture.
Car manufacturers must submit a detailed dossier to the French Environment and Energy Management Agency (ADEME) for each car model and version, even if the same model can have different battery configurations.
Ademe will then assess the environmental impact of the cars, taking the following factors into account:
- Materials used (steel, aluminum, ferrous metals, etc.) in vehicle manufacture.
- CO2 emissions linked to the energy used for intermediate transformations and vehicle assembly.
- CO2 emissions associated with battery production.
- The mode of transport used to get the car from the assembly site to the distribution site in France, taking into account different means of transport such as boat, train and truck.
The decree also specifies that the presence of recycled and bio-sourced materials in the vehicle, as well as the reparability of the battery, can be taken into account in the calculation of the environmental score.
NB: It is important to note that the decree of September 20, 2023 specifies that the previous eligibility criteria will continue to apply to new cars ordered or leased before December 15, 2023 inclusive, provided they are invoiced or the first rental payment is made no later than March 15, 2024.
How do I qualify for the ecological bonus?
To qualify for the ecological bonus, you must meet the following conditions:
- Be of legal age and reside in France.
- Buy a new vehicle or one leased for at least 2 years.
- The vehicle must be registered for the first time in France.
- The vehicle must have CO2 emissions of 50 g/km or less for electric, plug-in hybrid or hydrogen-powered cars.
- The price of the vehicle must not exceed €47,000.
If you meet these conditions, you can take the following steps to benefit from the ecological bonus:
- Apply for the ecological bonus from the Agence de services et de paiement (ASP). You can do this online on the ASP website, or by filling in the CERFA 13621 form.
- Provide the supporting documents requested. The supporting documents you need to provide depend on your situation and the type of vehicle you have purchased.
- Sign a declaration of honour. In this declaration, you undertake not to resell the vehicle within 6 months of purchase or before it has been driven 6,000 km.
If your application is accepted, you will receive the amount of the environmental bonus by bank transfer within 3 months.
The application for the ecological bonus must be submitted within 6 months of the vehicle's invoice date, and the amount of the ecological bonus varies according to the type of vehicle and its price.
Conversion bonus: what does it mean?
The conversion premium provides considerable financial support for companies considering the purchase or lease of an electric car, whether new or used.
This initiative offers a substantial reduction on the cost of purchasing an environmentally-friendly vehicle, encouraging its widespread adoption on the market.
The French government supports professionals in their transition to greener vehicles. Companies purchasing an electric or plug-in hybrid vehicle can benefit from assistance of up to 3,000 euros.
The individuals can also benefit from financial assistance from the French government. The amount of this assistance, which amounts to 27% of the acquisition cost (all taxes included), is capped at 6,000 euros.
A significant financial incentive, designed to encourage the transition to environmentally-friendly vehicles, while offering considerable economic benefits to companies committed to this ecological approach.
Conversion bonus amounts for professionals and private individuals :
Professionals:
For professionals interested in purchasing motorized 2 or 3-wheelers, as well as electric quadricycles, assistance of up to €1,100 is available.
However, this assistance is limited to the purchase cost of the vehicle and its electrical power. It is crucial to note that the vehicle must be new, and the maximum amount of aid, including the ecological bonus, is capped at €2,000. If these professionals live or work in a low-emission zone (ZFE), and their local authority has granted them assistance for the purchase or lease of a clean vehicle, they can benefit from an additional bonus, limited to €1,000.
Individuals:
For private individuals interested in purchasing passenger cars, plug-in hybrid vans(range ≤ 50 km) and combustion-powered vehicles with a reference tax income per unit of less than or equal to €14,089, specific aid amounts are available.
Subject to meeting certain conditions, such as a reference tax income per unit ≤ €6,300, a journey of more than 12,000 km per year and a home-work distance of more than 30 km, these individuals may qualify for a higher amount of assistance. A summary table is available to determine the exact amount to which they are entitled, depending on their situation.
| Type of vehicle | Criteria | Very low-income households and "heavy-duty" households | Very low-income households (reference tax income per unit less than or equal to €13,489) | Other households |
|---|---|---|---|---|
|
Passenger cars eligible for purchase (to benefit from the conversion bonus) |
Electric cars and plug-in hybrids (with a range > 50 km) |
If conditions met: €6,000 otherwise: €2,500
|
2 500 €
|
2 500 € |
|
Passenger cars eligible for purchase (to benefit from the conversion bonus) |
Plug-in hybrid (range ≤ 50 km) |
If conditions met: €3,000
If not: €1,500
|
1 500 € |
1 500 € |
|
Passenger cars eligible for purchase (to benefit from the conversion bonus) |
Thermal car |
If conditions met: €3,000
If not: €1,500
|
|
|
|
Vans eligible for purchase (to benefit from the conversion bonus) |
Electric van and plug-in hybrid vehicle (with range > 50 km) |
Class 1: up to €5,000
Class 2: up to €7,000
Class 3: up to €9,000
|
Class 1: up to €5,000
Class 2: up to €7,000
Class 3: up to €9,000
|
Class 1: up to €5,000
Class 2: up to €7,000
Class 3: up to €9,000
|
|
Vans eligible for purchase (to benefit from the conversion bonus) |
Plug-in hybrid van (with range ≤ 50 km) |
If conditions met: €3,000
If not: €1,500
|
1 500 € |
1 500 € |
|
Vans eligible for purchase (to benefit from the conversion bonus) |
Thermal pickup truck |
If conditions met: €3,000
If not: €1,500
|
|
|
For private customers:
Passenger car :
- New or used vehicle classified Crit'Air 1
- Range under 50 km
- CO2 emissions less than or equal to 127 g/km (137 g/km if the vehicle is more than 6 months old)
- Price less than or equal to €50,000
| Type of vehicle | Criteria | Very low-income households and "heavy-duty" households | Very low-income households (reference tax income per unit less than or equal to €13,489) | Other households |
|---|---|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used |
|||
|
|
Range over 50 km |
5,000 (up to 80% of acquisition cost) |
2500 € |
2500 € |
|
|
Price less than or equal to €60,000 |
|
|
|
|
Private car |
|
|
|
|
|
|
New or used vehicle classified Crit'Air 1 |
|
|
|
|
|
Range under 50 km |
3,000 (up to 80% of acquisition cost) |
1500 € |
0 |
|
|
CO2 emissions less than or equal to 127 g/km if the vehicle is more than 6 months old) |
|
|
|
|
|
Price less than or equal to €50,000 |
|
|
|
Light commercial vehicles :
- New or used vehicle classified Crit'Air 1
- Range under 50 km
- CO2 emissions less than or equal to 127 g/km (137 g/km if the vehicle is more than 6 months old)
- Price less than or equal to €50,000
| Type of vehicle | Criteria | Very low-income households and "heavy-duty" households | Very low-income households (reference tax income per unit less than or equal to €13,489) | Other households | ||
|---|---|---|---|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used |
40% of the acquisition cost, up to a maximum of :
|
||||
|
|
Range over 50 km |
5,000 for class 1 vehicles (reference mass less than or equal to 1,305 kg). |
||||
|
|
Price less than or equal to €60,000 |
7,000 for class 2 vehicles (between 1,306 and 1,760 kg) |
|
|
||
|
Light commercial vehicle |
|
9,000 for class 3 vehicles (over 1,760 kg) |
|
|
|
|
|
|
New or used vehicle classified Crit'Air 1 |
|
|
|
||
|
|
Range under 50 km |
3,000 (up to 80% of acquisition cost) |
1500 € |
0 |
||
|
|
CO2 emissions less than or equal to 127 g/km if the vehicle is more than 6 months old) |
|
|
|
||
|
|
Price less than or equal to €50,000 |
|
|
|
For professionals :
Passenger car :
- New or used electric or plug-in hybrid vehicle
- Range over 50 km
- Price less than or equal to €60,000
| Type of vehicle | Criteria | Amount of assistance |
|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used
|
|
|
Private car |
Range over 50 km |
2500 € |
|
|
Price less than or equal to €60,000 |
Light commercial vehicles :
- New or used electric or plug-in hybrid vehicle
- Range over 50 km
| Type of vehicle | Criteria | Amount of assistance |
|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used
|
40% of the acquisition cost, up to a maximum of : |
|
Light commercial vehicle |
|
5,000 for class 1 vehicles (reference mass less than or equal to 1,305 kg) |
|
|
|
7,000 for class 2 vehicles (between 1,306 and 1,760 kg) |
|
|
Range over 50 km |
9,000 for class 3 vehicles (over 1,760 kg) |
It's important to note that electric vehicles must have CO2 emissions of 20 g/km or less, while plug-in hybrids must have CO2 emissions of 50 g/km or less.
For example, a company purchasing a new electric van worth €60,000 could receive an ecological bonus of €3,000. If the company owns an older diesel van that is more than 10 years old, it is also eligible for a conversion bonus of €7,000. All in all, the company can benefit from a total of €10,000 in financial assistance, bringing the vehicle purchase cost down to €50,000.
Conversion bonuses and incentives: what you need to know before choosing between leasing and leasing
Before choosing between rental with purchase option (LOA) and long-term leasing (LLD) to benefit from conversion bonuses, it's essential to understand the differences between these two vehicle financing options. Here's what you need to know:
- Lease with purchase option (LOA) :
- The LOA allows you to lease a vehicle for a fixed period, generally from 2 to 5 years.
- You pay monthly installments for the duration of the lease.
- At the end of the contract, you have the option of buying the vehicle by paying the residual amount previously fixed in the contract.
- You can benefit from conversion bonuses and incentives if the leased vehicle meets the eligibility criteria, as you are considered the main user of the vehicle.
- Long-term leasing :
- LLD is a vehicle leasing contract for a longer period, generally from 2 to 5 years or more.
- You pay monthly installments for the duration of the contract, which generally cover maintenance, insurance and other vehicle-related services.
- At the end of the contract, you simply return the vehicle to the rental company.
- You can also benefit from conversion bonuses and incentives if the leased vehicle meets the eligibility criteria. However, as the lessee, you must ensure that the lessor applies the financial incentives to the monthly payments or total cost of the lease.
Before making your decision, be sure to :
- Check eligibility criteria for conversion bonuses and incentives for both financing options.
- Compare total costs, including monthly payments, maintenance, insurance and other associated costs.
- Read the terms of the contract carefully, especially the conditions for returning the vehicle at the end of the contract, in the case of long-term leasing.
- Take into account your financial situation, your needs in terms of annual mileage and your long-term intentions (owning or simply using the vehicle).
It is always advisable to consult a financial advisor or automotive professional to help you make the best decision for your particular situation. If you'd like more information, please don't hesitate to contact us. The beevers will be happy to help.
Conclusion
The ecological bonus and the conversion premium represent invaluable opportunities to support your transition to an environmentally-friendly vehicle.
In 2023, the ecological bonus will be strengthened with stricter criteria to promote even greener vehicles. We'll help you take all the necessary steps to benefit from these important financial advantages.
If you'd like to find out more about our offers, or if you have any questions about the process of obtaining the ecological bonus and the conversion premium, please don't hesitate to contact us.
Beev is here to guide you towards a cleaner, more economical automotive future. Make the right choice today and contribute to a healthier environment tomorrow.
