VW wants to convince customers with discounts to exchange old diesel cars for new models. So far, the exchange premium has only existed in cities with high levels of nitrogen dioxide pollution. From tomorrow it will apply to the whole Germany.
The car maker Volkswagen (VW) extends its offer of the so-called change premium for older diesel cars on the whole of Germany. So far, only car owners in polluted by air pollution cities had chance for the discount. The nationwide offer, however, is limited in time: It is valid from Thursday and runs until the end of April. Up to 7000 Euro discount is possible.
VW’s switch bonus applies when a customer exchanges a diesel vehicle with the Euro-4 or Euro-5 standard for a new car or a used second-hand car. Depending on the model, the premium is between 500 and 7000 euros. The amount will be paid at trade-in addition to the used car value. The sister company Audi offers such discount: when switching to a car with Euro 6 standard Audi pays up to 9000 €.
In addition to the change – VW continues to offer the environmental bonus: car owners who scrap their diesel the emission standards Euro 1 to 4 and change to a newer car, also get discount. The same applies to Audi.
According to VW, since August 2017 more than 240,000 old diesels have been replaced by newer models as part of the exchange premiums.
Other carmakers grant their customers discounts when changing from old diesel to a new car. Depending on the model, Daimler offers a discount of up to € 10,000 for Mercedes Benz diesel – but only in the large cities that are heavily polluted with nitrogen dioxide. Away from these “intensive cities” Daimler pays a premium of 2000 euros. Similar discounts granted BMW nationwide in the payment of diesel cars to the emission standard Euro 5 and in the cities also for Euro 4 diesel.
The car industry had long argued with the federal government for hardware retrofits. So far, VW and Daimler pay a subsidy of 3,000 euros, if in the diesel vehicle, a new catalyst is installed to reduce pollutant emissions.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
