Budget 2025: Government plans to remove car conversion bonus for new car buyers

Le nouveau gouvernement envisage de supprimer la prime à la conversion automobile. (Illustration). France-Bleu Limousin – Nicolas Blanzat

In a more than tense economic context, the new Barnier government is considering eliminating the bonus granted to buyers of new cars to save money, according to information from “Les Echos”.

This is a measure that should cause a reaction if it is confirmed in this 2025 budget. With the aim of covering debts and filling the coffers, the Michel Barnier government has decided to tackle a few sectors, particularly the automobile sector. He would consider eliminating the automobile conversion bonus, formerly called “scrappage bonus”, as reported by  La Dépêche du Midi.

This financial aid aims to encourage the French to get rid of their polluting vehicles (Crit’Air 3 or higher) and buy less polluting ones. It is available to the poorest households and to people who scrap a vehicle that is more than ten years old, in exchange for the purchase of an electric or hybrid car. A system that helps reduce the high pollution emitted by the French vehicle fleet. Motorists can therefore benefit from aid of up to 5,000 euros.

Car aid that is expensive

A total envelope that could be reduced by 500 million euros, thus going from 1.5 billion euros to 1 billion next year. The latter makes it possible to finance three major schemes: the electric vehicle buyback bonus, the famous social leasing which will be renewed next year and this conversion bonus.

Aid which would be a “collateral victim” of the slippage in social leasing costs, which with its 13,000 euros on average per file, had to be stopped in February to be redefined, according to “Les Échos". An initiative which seems strange and which should undoubtedly discourage users from continuing their efforts.