Is an eco-friendly car right for you?
Are you considering buying an eco-friendly electric car to help reduce your carbon footprint? Our guide has all the information you need about this new green form of transportation.
Transforming mobility to accelerate change
To support the commitment of our retail and corporate clients, we are constantly expanding our fleet of electric and hybrid leasing vehicles. Electric cars driven on Luxembourg roads had a 3.9%(1) market share in 2022. As part of the Integrated National Energy and Climate Plan (NECP), the Luxembourg government has set a target of 49% for 2030.
To meet the transition challenge, let’s pick up the pace together.
Greener vehicle options
An eco-friendly car is one that doesn’t run on conventional fossil fuels. Nowadays, these are often vehicles with one or more electric motors, sometimes paired with a fuel combustion engine.
Different types of these environmentally friendly electric cars are available on the market:
- hybrid cars that charge as you drive them, and that use conventional fuel for long trips
- plug-in hybrids that must be charged with a cable, but that can also use fuel for long trips
- fully electric cars that can only be charged with a cable.
Who are electric cars right for?
Whether hybrid or fully electric, eco-friendly cars are best for people in urban areas who want to protect the environment. They are ideal for those travelling shorter distances, who live near multiple charging stations.
Drivers of eco-friendly cars who live in the city travel shorter distances on a regular basis. Today’s electric cars can go between 200 km and 500 km on a charge. That means most city drivers can wait several days before charging the vehicle. However, the real travelling distance also depends on other driving habits.
Charging an electric car
With the exception of hybrid cars, electric vehicles can only charge at a charging station. You will have to plug your car into a special unit, or even a home electrical outlet if the vehicle allows.
Charging times vary depending on the charging station. Electrical outlets are the slowest. There are three options for charging your vehicle:
- at home from an outlet or a specially installed charging unit
- at work
- at one of the 800 public charging stations available in Luxembourg.
When you choose the first option, your electric company will charge you for the electricity you consume. The second one will depend on the system your employer has in place. They may choose provide free electricity. For the third option, you’ll need a prepaid card to use charging stations.
Good to know
The Chargy network includes more than 700 public charging stations provided for users of electric and plug-in hybrid vehicles in Luxembourg.
The network will soon include 88 new superfast “Super Chargy” charging points at service stations and car parks.
Financing the purchase of an eco-friendly car
Many manufacturers have extended their range of electric vehicles. The price of an electric car varies according to the model and finishes chosen.
The government is offering support in the form of subsidies:
- Subsidy of EUR 8,000, excl. VAT, for a fully electric car or van
- Subsidy of up to EUR 600 for a new bike, even for children
- Subsidy of up to EUR 1,000 for a new fully electric light vehicle (quad; motorcycle; light motorbike (125cc); moped (scooter and electric bike))
The Ministry of the Environment has decided to extend certain subsidies until the end of March 2024, subject to conditions(1). Electromobility is an integral part of the government’s plan to cut greenhouse gas emissions by 55% of 2005 levels before 2030.
BGL BNP Paribas offers two financing solutions so you can get your own eco-friendly vehicle:
- a green transport loan tailored to your needs and situation
- a private lease in collaboration with our partner, Arval Luxembourg, a real industry specialist offering a leasing solution to individuals living in Luxembourg. Ideal for managing your budget, saving time and driving with complete peace of mind.
Good to know
Applications for a subsidy can be submitted up to seven months before the vehicle is registered in the name of the applicant.
At the latest, they can be submitted two years after registration. Applications should be sent to the Environment Agency by filling out the online form on guichet.public.lu.
Frequently asked questions
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Can I take out a private lease on an electric or hybrid car?Absolutely. When you negotiate your private lease you can select the vehicle of your choice from any make (with the exception of Renault).
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Are different services included in a private lease for a hybrid or electric car?
Private leases for electric or hybrid vehicles include the same benefits as for conventional ones: servicing, maintenance, insurance, 24-hour breakdown assistance, replacement vehicle, etc.
(1) Source: Luxembourg government website, August 2022
(2)The government has decided to extend the award of up to €8,000 for buying an electric car until the end of March 2024.
This financial assistance of €8,000, introduced through the Neistart Lëtzebuerg programme, will be kept for fully electric cars, provided that the vehicle’s energy consumption does not exceed 180 Wh/km, i.e. 18 kWh/100 km. However, the car must be on the road before the end of 2024. To find out more about the terms of the extension, please visit the Myenergy.lu website.
