Electric car financing after the environmental bonus: How to get the car loan
23.06.2025
11
Minutes
Katrin Straub
Managing Director at nextsure
The environmental bonus for electric cars is a thing of the past, but the dream of the electric vehicle lives on. We show you how to structure the car loan for your electric car cleverly, even without the government incentive 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 a trade-off, many manufacturers offer their own discounts, and special green loans can lower financing costs through reduced interest rates.
Despite higher initial purchase costs, electric cars remain a cost-effective alternative in the long term thanks to lower operating and maintenance costs as well as tax exemptions.
Status Quo 2024: The abrupt end of state funding
The federal government discontinued funding for electric vehicles, known as the environmental bonus, on 18 December 2023. This step was a direct consequence of a ruling by the Federal Constitutional Court, which created a €60 billion gap in the Climate and Transformation Fund. Applications received by 17 December 2023 will still be processed, but new applications have not been possible since then. For buyers, this meant the loss of a subsidy of up to €4,500 from the federal government, which significantly reduced purchase costs. This decision changes the basis for calculating for anyone who wanted to combine a car loan for an electric car with the environmental bonus. The subsidy of €3,000 for 2024, originally planned until the end of 2024, albeit reduced, was therefore rendered obsolete. The loss of this amount must now be covered in full through financing or equity.
Manufacturer discounts in response to the end of subsidies
Many car manufacturers reacted quickly to the end of the state bonus in order to prevent sales from collapsing. Some brands temporarily took over the full incentive 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 if registered by the end of February 2024. Even though many of these initial campaigns have now ended, manufacturers continue to offer model-specific discounts and attractive leasing conditions. It is worth checking the current offers carefully, as a discount of several thousand euros can partly close the financing gap. These discounts are now a key component in planning your affordable car loan. The changed market situation is forcing buyers to compare more carefully and negotiate.
Recalculate your electric car loan: an example calculation
The removal of the subsidy has a direct effect on the loan amount and monthly burden. 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 now have to be financed, which increases the monthly instalment by around 83 euros over a term of 60 months and an effective annual interest rate of four per cent. This difference adds up to almost 5,000 euros over the entire term. To reduce the monthly burden, there are several levers:
Make a larger down payment to reduce the loan amount.
Choose a longer loan term, although this increases the overall cost.
Consider a financing arrangement with a final instalment to keep the instalments low.
Trade in the old vehicle to lower the purchase price, as with a car loan with part exchange.
A careful budget calculation is now more important than ever to find the right financing structure.
Use special green loans as an alternative
Some banks offer special loans for environmentally friendly investments, which also apply to electric cars. These so-called “eco loans” or “green loans” often have more favourable interest rates than conventional instalment loans. The interest-rate advantage can be one percentage point or more, which over the term means savings of hundreds of euros. These loans are a direct financial incentive that can at least partly offset the removal of the environmental bonus. The conditions are usually tied to the vehicle type – it must be a pure electric or fuel cell vehicle. Comparing these special eco loans for sustainable investments is an important step in securing the best possible terms. This makes financing more viable despite the lack of a government bonus.
Total cost at a glance: Why electric cars are still worthwhile
Despite the higher purchase price without the bonus, considering the total cost of ownership (TCO) is crucial. Electric cars continue to benefit from significant operating cost advantages. These include exemption from motor vehicle tax for up to ten years for first registrations until the end of 2025, which saves several hundred euros each year. Maintenance costs are also up to 35 per cent lower thanks to the absence of oil changes or exhaust systems. At an electricity price of 30 cents per kilowatt-hour, energy costs per 100 kilometres are clearly below petrol costs. A calculation example:
An electric car (consumption: 18 kWh/100 km) costs €5.40 per 100 kilometres.
A comparable petrol car (consumption: 7 l/100 km) costs €12.60 at a petrol price of €1.80 per litre.
With an annual mileage of 15,000 kilometres, this results in annual savings of over €1,000 from fuel costs alone.
These ongoing savings help offset the higher monthly loan instalments and make the loan for an electric car attractive in the long term.
Remaining funding opportunities for electric car owners
Even though the major environmental bonus has been discontinued, smaller, often regional, funding programmes are still available. One important area is charging infrastructure. Although the nationwide KfW programme “Solar power for electric cars” (442) has also been discontinued, some federal states and local authorities still offer grants for the installation of a private wallbox. In North Rhine-Westphalia, for example, up to 40 per cent of the costs for charging infrastructure in apartment buildings are covered. In addition, tradespeople’s costs for the installation can be claimed as tax deductions, which can amount to up to €1,200 per year. It is advisable to check with your local council or federal state about current programmes, as there is often untapped savings potential here. These smaller grants add up and reduce the overall investment in electric mobility.
Insurance is often an underestimated item in the overall cost calculation. A specialist electric car insurance policy is essential, as it covers risks that do not exist for combustion-engine vehicles. This includes above all protection for the battery, the most expensive component of an electric car. Good policies cover damage caused by user error, deep discharge or overvoltage and offer high new-for-old compensation for the battery, often for 24 months or longer. Comprehensive cover for the battery and charging cable can prevent costs of more than 15,000 euros in the event of a claim. Choosing the right insurance package has a direct impact on running costs and financial security. Well-considered cover is therefore just as important as choosing the right loan. This lays the foundation for worry-free and cost-effective e-mobility.
More useful links
Wikipedia offers a comprehensive article on the environmental bonus, which describes government funding for electric vehicles in detail.
The ADAC provides up-to-date information on support for electric cars.
The Consumer Advice Centre of Lower Saxony provides information in an article about the end of government support for electric cars.
The DAT offers information on BAFA funding for used electric cars.
The motor trade comments on the end of the environmental bonus and its consequences for customers and car dealers.
The Federal Ministry of Finance provides information on the federal budget, which forms the basis for funding decisions.
FAQ
How can I best offset the loss of the environmental bonus when taking out a car loan?
You can offset the shortfall with a higher deposit, by looking for manufacturer discounts, choosing a favourable green 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 cars?
No, often the opposite is the case. Many banks offer special “green” loans for electric cars with interest-rate advantages. The effective annual rate can be lower here than for a standard car loan.
What other incentives are there for electric car drivers?
Although the purchase grant has been discontinued, there are often still regional subsidies for the installation of a wallbox. In addition, you benefit from up to ten years' vehicle tax exemption and lower operating costs.
What should a good electric car insurance policy cover?
A good electric car insurance policy should definitely insure the battery against all risks (including user error, overvoltage, deep discharge). Also important are protection for the charging cable and new-for-old compensation for the battery for at least 24 months.
Can I trade in my old car to reduce the loan?
Yes, trading in your old vehicle is a very good way to directly reduce the purchase price of the new electric car and, as a result, the amount of finance required. This noticeably lowers your monthly payments.
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