New scrapping premium rejected by car owners

The government's new scrapping premium risks being a flop. Only one in five car owners thinks the premium of 10,000 kronor is reasonable. This is according to a survey that we at Kvdbil conducted in collaboration with Kantar Sifo.

On August 20, a temporary scrapping bonus of SEK 10,000 will be introduced for anyone who scraps their car that is at least 15 years old and switches to an electric car. The government hopes that this will speed up the transition to electric cars.

Half a billion kronor has been set aside for the years 2024 and 2025, which would finance the scrapping of a total of 50,000 cars if the premium is fully utilized. However, several authorities and consultation bodies have noted that the government's forecasts are too optimistic. Our survey, which is based on responses from over 1,000 car owners, confirms these concerns.

Only one in five (18%) thinks that a premium of SEK 10,000 is reasonable. About the same number (17%) believe that the amount should be at least double that, and more than one in four (27%) believe that the premium should be SEK 50,000 or more. The premium is even less well received by those who drive fossil-fueled cars, the group that the reform is actually aimed at. The figures are particularly low among diesel drivers. Only one in seven (15%) gives the thumbs up to SEK 10,000, while one in three (33%) believes that the premium should be at least SEK 50,000.

Complicated regulations

The premium applies whether you buy or lease your electric car, but you must keep it for at least one year. Your old car must also meet several requirements: it must be approved by an inspection company, be in traffic and have exhaust gas purification according to Euro 4 or older. Euro 5 was introduced as a requirement for passenger cars in Europe in September 2011, while Euro 4 began to be applied in January 2005. In addition, you must have owned the car since September 2023, and the electric car you buy must not have been owned by a close relative.

Daniel Odsberg, sales manager Kvdbil , believes that there is an obvious risk that the goal of 50,000 scrapped cars will not be reached.

– For many, 10,000 kronor is probably not motivating enough. The premium for scrapping the car must of course be compared to the car's market value if it is sold, and a complete and functioning 15–20-year-old car is often worth more than 10,000 kronor. In addition, few people who buy an electric car today drive around in cars with such a low value.

However, he is positive that the premium also covers used electric cars, which could encourage more people to take the step towards electric cars.

– Here it feels like the government has listened. When the proposal was first presented, it seemed like the premium would only apply to new electric cars. The fact that you will now be able to trade in your old car and receive a small amount that can help finance a used electric car, I think can make the premium attractive to some car owners, which our survey also shows, says Daniel Odsberg.

This is how high Swedish car owners think the scrapping premium should be

About the survey
The survey was conducted in the Kantar Media web panel (Sifopanelen) during the period 4–8 January 2024. A total of 1,055 car owners aged 18-79 were interviewed. The web panel is nationally representative and recruited based on random selection. There is no self-recruitment in Kantar Media's web panel (Sifopanelen).