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> Economy

Current Scrappage and Subsidy Programs for New Cars

Confusion persists, with frequent questions from readers, as many Greeks are currently in the process of changing their cars

Newsroom August 27 05:30

Greece suffers from old cars. The environment, safety, and daily life are affected by numerous old vehicles on the roads, significantly contributing to traffic congestion.

The undeniable facts about Greece’s vehicle fleet are dire. The average age of private cars in Greece exceeds 17 years. For trucks and buses, it’s been over 21 years. Notably, 70% of vehicles on Greek roads are over 15 years old, and only 30% of these receive proper maintenance as recommended by the manufacturers.

Old or poorly maintained vehicles are 80% more likely to break down than newer, well-maintained ones. They emit four times more pollution and fail to brake and steer correctly. As we all understand, this creates a dangerous mix on our roads, endangering pedestrians and students alike.

The need and desire for Greeks to replace old cars with newer models are evident, as shown by increased visits to dealerships. The same trend is seen in motorcycles, with record-breaking attendance at the April expo at the Metropolitan EXPO Center.

However, the question is whether the average Greek can afford to change their car today. An economic incentive, like a scrappage program, would greatly help renew the vehicle fleet and reduce the environmental footprint.

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Is there a scrappage program for cars today?
Currently, there is no scrappage program within the EU. In Greece, besides the familiar “Move Electric” subsidy, which is only for electric vehicles, there is no immediate plan for such a costly program. By the end of the month, the only country with such an initiative will be Italy.

Italy’s new car scrappage program is designed to encourage the purchase of cleaner vehicles, including electric, hybrid, and even Euro 6 gasoline and diesel vehicles. This initiative aims to boost economic recovery post-COVID and address environmental concerns by offering incentives for citizens to replace older, more polluting cars.

Under this program, buyers scrapping cars over 10 years old can receive a subsidy of €3,500 if they purchase a new car priced under €40,000.

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