Aids for the Renove 2020 Plan are published

The Official State Gazette (BOE) published this Monday the 2020 Renove Plan for the renovation of the car park and 80% of the 250 million euros with which it is endowed will go to the purchase of passenger cars.

The plan is included within the Automotive Industry Value Chain Promotion Plan and was approved last Friday by the extraordinary Council of Ministers. In a first section, 230 million euros will be used to renovate the car park (200 million), commercial vehicles (25 million) and motorcycles (5 million). For its part, the acquisition of industrial vehicles and buses will be promoted with 20 million.

The program, which is not compatible with the Efficient and Sustainable Mobility Incentives Program (Moves), seeks to replace older vehicles in circulation, which are more polluting and less safe, with more modern ones and following the criteria of technological neutrality. To access the aid, it is mandatory to deliver a car that is at least ten years old and seven years old, if it is a commercial one. These models must have the ITV in force and the owner must be the beneficiary of the aid or a first-degree relative.

As stated in the BOE, the aid will be used for the direct acquisition or through financing operations by financial leasing or leasing by renting (also called operating leasing) of a new vehicle registered from June 15 (included).

In addition, the aid beneficiary must maintain ownership of the vehicle and its registration in Spain for at least two years from the time the grant is awarded.

Likewise, the plan also includes pre-owned models, starting from January 2020, as a measure that seeks to help dealers to exit self-registered vehicles during the period of confinement.

The program will be launched through the activation of a telematic aid management system, the date and time of which will be published through the plan’s portal, which will end on December 31 or when funds run out. The concessionaires may also provide the buyer with the electronic means that allow him to process the request.

In the case of passenger cars, it is limited to models with alternative energies or that have labels A or B and that have average CO2 emissions of less than 120 grams per kilometer (155 grams for light commercial vehicles). It also establishes a price limit for passenger cars of 35,000 euros (45,000 euros in the case of people with reduced mobility or vehicles with a Zero label).

The purchase of cars with a Zero label by private individuals or the self-employed will be subsidized with 4,000 euros, while if an Eco model is purchased they will receive between 600 and 1,000 euros and between 400 and 800 euros if they opt for a model with a C label.

The automobile sector will have to make a mandatory discount and the same amount of what the State contributes, except in the case of Zero vehicles, which will be 1,000 euros. In this way, private customers can obtain a total discount of 5,000 euros for the purchase of a vehicle with a Zero label and up to 1,600 euros for a combustion vehicle.

The amounts would increase by 500 euros as long as the recipient is a person with an income below the 40th percentile of income or with reduced mobility, as well as if the vehicle to be scrapped is over 20 years old.

Buyers of cars with Zero label that have an average salary of about 20,000 euros per year and receive aid will pay about 1,031 euros in their next income statement, according to estimates by the Finance Technicians (Gestha) for Sumauto.

In the case of SMEs, aid is 3,200 euros for Zero, between 500 and 800 euros for Echoes and between 350 and 650 euros for C, while large companies will receive 2,800 euros in the first case, between 450 and 700 in the second and between 300 and 550 euros in the third.

Incentives to purchase light commercial vehicles are for models up to 2,500 kilograms: between 2,800 and 4,000 euros with a Zero label, between 850 and 1,200 euros with Eco and between 700 and 1,000 euros with C.

For its part, aid to heavy commercials is between 2,800 and 4,000 euros for Zero, between 1,900 and 2,700 euros for Eco models and between 1,500 and 2,100 euros for C. In the case of industrial vehicles and buses, Aid will range between 2,000 and 4,000 euros, with a limit of one vehicle per beneficiary and 30 for legal entities.

The purchase of motorcycles will be subsidized with 400 euros in the case of individuals who purchase a gasoline model and 750 euros for those who choose an electric one. For SMEs and large companies, subsidies will vary between 200 and 750 euros.

The Executive estimates that the program will have an economic impact in Spain of 1,104 million euros in the entire value chain of the automotive sector and associated services, and that it will allow the maintenance of 7,400 jobs.

Fuente: BOE