Automotive: Macron wants to revive the second-hand market

The Élysée is considering extending the conversion premium to combustion vehicles.

The President of the Republic is due to present his plan to support the automotive sector on Tuesday, and to boost new car sales, he plans to increase the bonus linked to the purchase of an electric car and to create a bonus for rechargeable hybrid vehicles, which allow you to drive a few dozen kilometres in 100% electric mode.

Le Parisien and Les Echos have mentioned bonuses increased from 6,000 to 8,000 euros for individuals buying an electric vehicle, from 3,000 to 6,000 euros for companies purchasing such a car, and up to 2,000 euros for rechargeable hybrids. Some of these amounts are still under negotiation. The final arbitrations will be made by the Élysée.

Emmanuel Macron should also focus on reviving the second-hand market (much more important than the new one), with the probable extension of the conversion premium, which makes it possible to buy a vehicle (new or second-hand) by permanently storing one’s old car. Launched in 2016, it has been a great success, very costly for the State budget; but last year, it suffered a serious setback, being limited to electric and hybrid cars.

This premium will return, more or less, to its original form and will once again benefit combustion-powered vehicles. This would revitalise both the second-hand and new car markets. In April, new car sales plunged by 89% in France, a drop of more than 48% since January.

“The cars in stock in factories and car dealerships are worth more than 10 billion euros,” warns a person close to the negotiations between the industry and the government. 96% of these stocks are made up of internal combustion models. To revive the industry, we must allow the purchase of this type of vehicle, even if the combustion engine, especially diesel, has a very bad image among environmentalists. However, exchanging an old combustion engine for a more recent one reduces polluting emissions…

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