From insurance to road tax and charging tariffs, below are some of the costs to consider when buying an EV or PHEV in Luxembourg
So, you’ve found your dream electric, hybrid or hybrid plug-in, know the cost and have secured a loan to fund it. Here are a few other considerations to bear in mind when owning and using electric, hybrid or plug-in hybrid electric vehicles.
Subsidies from the state
The Luxembourg state in January announced a new subsidy scheme for vehicles purchased in 2019.
It will offer €5,000 refunds on the purchase of 100% electric cars and €2,500 for electric plug-in hybrids with CO2 emissions of 50 g/kg or less.
People can also get up to €500 in refund on the purchase of an electric quad, motorcycle, light motorcycle (125 cm3) or moped (and pedelec 45). The actual refund is 25% of the cost excluding VAT of the vehicle, but not exceeding €500. The stand-on electric scooter is not included in the scheme.
Meanwhile, people buying hydrogen fuel cell cars and vans are also eligible for the €5,000 bonus.
The incentives are offered to people who own and register an eligible vehicle in Luxembourg. It covers vehicles which enter service from 1 January 2019 to 31 December 2019 and have not been registered abroad. Owners may apply after owning the vehicle for seven months.
In the case of a rental or leasing contract, financial assistance may be granted to the keeper of the vehicle entered on the registration certificate or identified on the rental or leasing contract, provided that the owner of the vehicle renounces the assistance in question and that the vehicle is registered in Luxembourg.
Some manufacturers, such as Renault offer the option of leasing the car battery. There can be advantages to leasing a battery since the technology is improving rapidly and helps remove the risk of poor depreciation. In any case it is a question to ask the dealer.
Road tax brackets
According to the Automobile Club Luxembourg (ACL), vehicles powered exclusively by an electric motor are subject to the lowest road tax of €30. For hybrid petrol or diesel vehicles, you can calculate your road tax based on the vehicle’s CO2 emissions using the tool on the ACL website.
Even if you have a car battery with high electric autonomy, at some point you’re going to have to recharge it. If not charging from home with a domestic socket, electric vehicle owners can benefit from the 277 super-fast Chargy stations currently in place in the grand duchy. A further 200 will be installed in 2019 and by 2021 there is expected to be 800 charging stations in the domestic Chargy network.
Since each station has two charging points, it can charge two vehicles at once. Payment is made through prepayments online via the mKaart system. With some energy providers, such as Enovos, you can be billed monthly for your energy consumption.
If you’ve a new MKaart, with a serial number starts with with 9.000-30, then your card is already compatible for electric charging. If not, you can get a replacement that is compatible at a small cost (€2 with Enovos). With some providers, you’ll have to pay a small, one-off administration fee (€12 with Enovos) to create your account.
The cost of using super fast charging stations depends on which energy provider powers it. Some, as is the case for Sudstroum, are offering free recharges for the time being.
Enovos charging stations can be used at a cost of 20 cents per kWh (tax included).
The consumption of the vehicle will depend on its range, the capacity of the battery and type of driving. But to give you an idea of costs, average consumption with an electric car works out at 15-20 kWh/100 kilometres.
One major difference to consider is that the calculation for a basic civil liability insurance on an EV or PHEV is based on the power of the vehicle and not the number of cylinders in its engine.
Some insurance providers in Luxembourg offer discounts on electric vehicle insurance. Lalux, for example, offers a 30% discount on full casco (fire, broken glass, theft and vehicle damage) on 100% electric vehicles while Foyer is offering 25% discount on electric and hybrid premiums.
Don’t be surprised if the premiums offered by Luxembourg insurers are higher for EVs and HPEVs than thermal engine vehicles. Last year, various media outside of Luxembourg reported this was particularly the case for 100% electric vehicles. UK insurer Direct Line suggested this was because of the cost of specialised parts, the need for specialised mechanics, the high cost of batteries and higher risk of pedestrian accidents because of the quiet running.
Other insurance considerations
Buyers may also want to consider other insurance add-ons, for example battery insurance, given they are pricy. For this reason you should tell your insurer whether your battery is leased as they may not cover this.
When using cables to charge your vehicle at home, you might want to consider injury insurance, as the cable could be viewed as a trip hazard.