French government extends EV support

The French government has announced an extension of financial support for used electric vehicles (EVs), following a request from the Ministry of Transport and Energy Transition. This support, set to begin on September 1, 2026, includes a bonus that can be worth more than 300 euros, provided the vehicle meets specific criteria.

Conditions for the EV bonus

To qualify for the bonus, the used EV must have been first registered in France between 2017 and 2023, weigh less than 1,800 kg, have a battery with at least 80% of its initial potential, display more than 200 km of residual autonomy, and be priced under 25,000 euros including taxes.

Mixed reactions from dealers

The new measure has received mixed reactions from dealers, with some welcoming the initiative while others remain critical. Critics argue that the financial incentive is insufficient to significantly impact the used EV market, especially given the current dynamics.

Residual value and market trends

The average price of used electric vehicles in France has reached a record high, averaging 31,689 euros on infomediary sites, according to data from Le Parking. This increase is partly attributed to the conflict in the Middle East, which has raised fuel prices and boosted demand for used EVs.

Growing interest in used EVs

Searches for used EVs on classified ads sites have increased by 150% since August, according to La Centrale. Despite this, French used electric vehicles remain attractive for export, as France continues to have the lowest price level in Europe for such vehicles.

Valuation gap and market segments

The valuation gap between used electric vehicles and traditional thermal vehicles has decreased significantly, according to data from Oveo's remarketing platform. The used EV market in France is divided into three segments: vehicles under 10,000 euros, those over 20,000 euros, and a core market of vehicles priced between 10,000 and 20,000 euros.

Challenges in pricing and valuation

Dealers are struggling to position used EVs on the price scale and to accurately value the technology. Some suggest that updated calculation methods are needed to better reflect the specificities of used EVs, and the integration of a digital SOH certificate in advertisements has become a prerequisite to reassure customers and justify prices.

Calls for stronger market support

Despite these developments, the CEE VO device is seen as insufficient to address the ongoing challenges in the used EV market. Dealers have expressed a preference for a scrappage bonus that would support the used EV market while helping to renew the vehicle fleet.

Differing views on improving competitiveness

Market analysts have differing opinions on how to make used electric vehicles more competitive. Discussions include the possibility of reducing the value-added tax (VAT) on such vehicles, and the need for a comprehensive review of the used EV market has been emphasized, with the Paris Motor Show expected to bring some announcements.