Electric car financing following the environmental bonus: How to make the car loan work
23 Jun 2025
6
Minutes
Katrin Straub
CEO at nextsure
The environmental bonus for electric cars is a thing of the past, but the dream of owning an electric vehicle lives on. We show you how to smartly arrange the car loan for your electric car even without the state premium of up to €6,750 and benefit from new advantages.
The topic in brief and concise terms
The government environmental bonus was discontinued in December 2023, making the financing of electric cars several thousand euros more expensive.
As compensation, many manufacturers offer their own discounts, and special eco-loans can reduce financing costs through lower interest rates.
Despite higher initial costs, electric cars remain an economical alternative in the long term due to lower operating and maintenance costs, as well as tax exemptions.
Status Quo 2024: The Abrupt End of Government Funding
The Federal Government ceased funding for electric vehicles, known as the environmental bonus, on 18 December 2023. This move was a direct result of a ruling by the Federal Constitutional Court, which led to a 60-billion-euro shortfall in the Climate and Transformation Fund. Applications received by 17 December 2023 are still being processed, but new applications are no longer possible since then. For buyers, this meant the loss of a grant of up to 4,500 euros from the government, which significantly reduced acquisition costs. This decision alters the financial basis for anyone who wanted to combine a car loan for an electric vehicle with the environmental bonus. The originally planned, though reduced, subsidy of 3,000 euros for 2024, which was expected to last until the end of 2024, became void. The loss of this amount now needs to be fully covered by financing or equity.
Manufacturer discounts in response to the cessation of funding
Many car manufacturers quickly responded to the end of the government bonus to avoid a drop in sales. Some brands temporarily took on the full bonus for orders placed and registered by a certain date. For example, the Stellantis group guaranteed a discount of up to 4,500 euros for vehicles of its brands registered by the end of February 2024. Even though many of these initial promotions have expired, manufacturers continue to offer model-specific discounts and attractive leasing conditions. It is worth carefully checking the current offers, as a discount of several thousand euros can partially bridge the financing gap. These discounts are now a key component in planning your affordable car loan. The changed market situation forces buyers to compare more closely and negotiate.
Recalculate your electric car loan: An example calculation
The elimination of the bonus directly affects the loan amount and the monthly payment. Let's take an electric car with a purchase price of 45,000 Euros as an example. With the planned bonus of 4,500 Euros, the amount to be financed would have been 40,500 Euros. Without the bonus, the full 45,000 Euros must now be financed, which increases the monthly installment over a period of 60 months and an effective annual interest rate of four percent by approximately 83 Euros. This difference adds up to almost 5,000 Euros over the entire term. To reduce the monthly burden, several options are available:
Make a higher down payment to reduce the loan amount.
Opt for a longer loan term, which, however, increases the overall costs.
Consider a financing with a final installment to keep payments low.
Trade in the old vehicle to lower the purchase price, as with a car loan with trade-in.
A careful budget calculation is now more important than ever to find the right financing structure.
Utilise special eco-loans as an alternative
Some banks offer special loans for eco-friendly investments, which also apply to electric vehicles. These so-called "eco loans" or "green loans" often have more favourable interest rates than conventional installment loans. The interest advantage can be one percentage point or more, which means a saving of hundreds of euros over the term. These loans are a direct financial incentive that can at least partially compensate for the elimination of the environmental bonus. The conditions are usually tied to the type of vehicle – it must be a pure electric or fuel cell vehicle. Comparing these special eco loans for sustainable investments is an important step to securing the best possible terms. It makes the financing more viable despite the lack of state premiums.
Keeping an Eye on Total Costs: Why Electric Cars Are Still Worthwhile
Despite the higher purchase price without a bonus, examining the total cost of ownership (TCO) is crucial. Electric cars continue to benefit from significant cost advantages in operation. These include exemption from vehicle tax for up to ten years when first registered by the end of 2025, saving several hundred euros annually. Additionally, maintenance costs are up to 35 percent lower due to the elimination of oil changes or exhaust systems. The energy costs per 100 kilometres are significantly lower than petrol costs, with an electricity price of 30 cents per kilowatt-hour. Here’s an example calculation:
An electric car (consumption: 18 kWh/100 km) costs 5.40 euros per 100 kilometres.
A comparable petrol car (consumption: 7 litres/100 km) costs 12.60 euros at a petrol price of 1.80 euros per litre.
With an annual mileage of 15,000 kilometres, there is an annual saving of over 1,000 euros purely on "fuel costs."
These ongoing savings help offset the higher monthly loan payment, making the loan for an electric car attractive in the long term.
Remaining funding opportunities for electric car owners
Although the large environmental bonus has been discontinued, smaller, often regional funding programs still exist. An important area is the charging infrastructure. Although the nationwide KfW program "Solar Power for Electric Cars" (442) has also been discontinued, some federal states and municipalities continue to offer grants for the installation of a private wallbox. In North Rhine-Westphalia, for example, up to 40 percent of the costs for charging infrastructure in multi-family houses are covered. In addition, craftsmen costs for installation can be deducted from taxes, which can amount to up to 1,200 euros per year. It is advisable to inform yourself about current programs in your own city or federal state, as there is often untapped potential for savings here. These smaller grants add up and reduce the overall investment in electromobility.
The electric car insurance as a crucial cost factor
An often underestimated item in the total cost calculation is insurance. A specialised electric car insurance is essential as it covers risks that do not exist for combustion engines. This especially includes the protection of the battery, the most expensive component of an electric car. Good policies cover damage caused by user errors, deep discharge, or overvoltage, and offer high new value compensation for the battery, often for 24 months or longer. Comprehensive protection for the battery and charging cable can prevent costs of over 15,000 euros in case of damage. Choosing the right insurance package has a direct impact on running costs and financial security. Thoughtful coverage is therefore just as important as choosing the right loan. This lays the foundation for carefree and economical electromobility.
More useful links
Wikipedia offers a comprehensive article on the environmental bonus, which describes the government subsidy for electric vehicles in detail.
The ADAC provides current information on the subsidy for electric cars.
The Verbraucherzentrale Niedersachsen provides an article about the end of the government subsidy for electric cars.
The DAT offers information on the BAFA subsidy for used electric cars.
The KFZ-Gewerbe comments on the end of the environmental bonus and its consequences for customers and car dealers.
The Bundesfinanzministerium provides information on the federal budget, which forms the basis for subsidy decisions.
FAQ
How can I best offset the removal of the environmental bonus on a car loan?
You can offset the shortfall by making a larger down payment, seeking manufacturer discounts, choosing a favourable eco-loan, or opting for a longer loan term. A combination of these measures is often the most effective.
Are loans for electric cars more expensive than for combustion engine cars?
No, often the opposite is true. Many banks offer special 'green' loans for electric vehicles with interest advantages. The effective annual interest rate can be lower than that of a standard car loan.
What subsidies are still available for e-car drivers?
Even though the purchase subsidies have been discontinued, there are often still regional grants available for the installation of a wallbox. Additionally, you benefit from up to ten years of road tax exemption and lower operating costs.
What should a good electric car insurance cover?
A good electric car insurance policy should definitely insure the battery against all risks (including operator errors, overvoltage, deep discharge). Protection for the charging cable and a new replacement value for the battery of at least 24 months is also important.
Can I trade in my old car to reduce the loan?
Yes, trading in your old vehicle is a great way to directly reduce the purchase price of the new electric car, and consequently the required loan amount. This noticeably lowers your monthly payments.
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