2020 car scrappage incentives: here are all the details

2020 car scrappage incentives: here are all the details

What are the Auto 2020 scrappage incentives?

Incentives for scrapping cars are one of the many measures that our Government adopts in an attempt to modernize and make the national vehicle fleet less polluting. The average car on the road in Italy is at least 11 years old and this makes the Italian car fleet one of the oldest in Europe.

Another interesting statistic indicates that out of some 38 million vehicles on the road, more than 10 million (more than a quarter of the total) are over 17 years old. We often hear that Italy is a country of old people and therefore we could also add "and old cars"?

Coming back to us, incentives for scrapping cars make it easier to buy new cars by reducing the cost of scrapping or offering a cash bonus if you buy a car that is considered environmentally friendly. Last year was a very important year for this type of incentive because, with the 2019 Ecobonus, the Government has made electric or hybrid cars much more accessible to the average citizen. It has to be said that this type of car will always remain a more expensive alternative to ordinary petrol or diesel but, between incentives and discounts on stamps and taxes, the gap in terms of cost is slowly closing.

The 2020 scrappage incentives consist of a discount on the purchase of a new, environmentally friendly car provided a Euro 3 or earlier car is scrapped.

What is the 2020 Mobility Voucher?

The 2020 Mobility Voucher and the 2020 car scrappage incentives are exactly the same. Introduced in the Climate Decree, the Mobility Voucher is the name of the incentive we've all always called car scrappage incentives.

As we will see, the Mobility Voucher 2020 offers financial incentives in the form of discounts on alternative mobility after scrapping old and polluting vehicles. There are incentives of 1500 euros for scrapping cars and 500 euros for scrapping motorcycles and scooters.

For this measure the Government has allocated 255 million euros to be used until the end of 2021 or until stocks run out. Given that the allocation is enough to cover the scrapping of 170,000 cars across the country, many are wondering how effective this measure could be.

What are the incentives for scrapping cars in 2020?

With the passing of the Climate Decree on 23 October 2019, the incentives for car scrapping in 2020 confirm the bonus already prepared in 2019. You can therefore benefit from a contribution of 1500 euros if you scrap a car 0,1,2 or 3 euros. This incentive is valid for any car scrapping until 31 December 2021.

However, please note that the car scrappage voucher for 2019-2021 does not consist of a discount on the purchase of a new car, like Ecobonus Auto 2020. The €1500 contribution can instead be used for discounts on public transport or bicycles, including electrically assisted bicycles.

What are the incentives for scrapping bicycles in 2020?

One of the innovations introduced with the Climate Decree of October 2019 is the creation of incentives for scrapping motorcycles in 2020. These incentives apply if a scooter or motorcycle belonging to the Euro 2 or Euro 3 two-stroke environmental classes is scrapped.

The 2020 motorcycle scrappage incentive consists of a bonus of EUR 500 to be used for the same purposes as the 2020 car scrappage incentives.

We also remind you that the 2020 motorcycle scrappage incentive is only accessible to those "lucky" citizens who live in cities that regularly exceed CO2 and NOX air pollution limits.

How long do the 2020 car scrappage incentives last?

The 2020 car scrappage incentives are valid for scrapping cars and motorcycles until the end of 2021.

Once the vehicle is scrapped, the incentive can be used for expenses for the next 5 years for the entire household. This means that for a car scrapped in June 2020 you will have a voucher of 1500 euros expendable until June 2025.

In which municipalities can the 2020 car scrappage incentives be used?

The 2020 car scrappage incentives can be applied for in more than 3134 Italian municipalities with more than 100,000 inhabitants that have been subject to EU infringement proceedings n. 2014/2147 and n. 2015/2043 for exceeding the maximum threshold of pollutant concentration in the air. The list of these municipalities is very long and includes almost all major Italian cities, including Milan, Rome, Turin, Naples, Salerno and Genoa.

The incentive can be used by the citizens of these municipalities. The quickest way to confirm that your municipality is valid for the application is to contact the municipal office directly. Alternatively, you can ask car dealers who are certainly aware of a measure that, after all, helps sell more new cars.

What can you use the 2020 car scrappage incentives for?

The 2020 car and motorcycle scrappage incentives can be used for a sustainable alternative mode of transport. So you can use the €1500 voucher to..:

  • Sharingmobility services, such as the use of electric scooters, car sharing and municipal bicycles.
  • Buyingpublic transport passes - the incentive is also valid for family members living together.
  • Purchase of abicycle, which can be a normal bicycle or an electric-assist bicycle.

With the 2020 car scrappage incentives you cannot get discounts on the purchase of new cars. Instead, the Ecobonus Auto 2020 must be used to obtain discounts on the purchase of new environmentally friendly cars.

Where are the 2020 car scrappage incentives valid?

The car scrappage incentives are applicable in all regions of Italy, albeit with major differences both in terms of maximum contribution and application procedure.

The region where the highest contribution can be obtained is undoubtedly Lombardy. Here, in fact, between the Ecobonus and the regional incentives you can get a discount of 14,000 euros on the purchase of a new car with low emissions, let's say electric cars.

The best option is to check the website for your region or, in the worst case, contact them directly to ask for explanations on how the incentive applies to that region. Relying on dealers and distributors can make the process easier and faster, but it's not always a guarantee of the right answer.

Are the 2020 auto scrappage incentives cumulative?

Yes, the incentives are cumulative with both Ecobonus 2020 and incentives at the regional and national level.

Each region has its ownsemi-independent strategy. Following the Rome guidelines, it is free to implement additional ones, compatible with its own budget.

The northern regions, first of all Lombardy and Piedmont, which have a larger budget, offer great incentives to change car.

What cars can I buy with the 2020 car scrappage incentives?

As explained above, the 2020 car scrappage incentives cannot be used to buy cars or motorcycles.

The only thing you can buy with the mobility voucher is a regular or electric bike.

A discount on a new electric or hybrid car can be obtained instead with the Ecobonus 2020.

Incentives for scrapping cars in 2020 and car vignette exemption

In addition to the 2020 car scrappage incentives in some regions, there are also additional discounts, including car vignette exemption. Anyone scrapping a petrol car up to €1 or a diesel car up to €3 and at the same time buying a €5 or €6 petrol, bifuel (petrol/LPG or petrol/methane) or hybrid (petrol/electric) car is entitled toa3-year exemption from the car vignette.

For more information on the 2020 car vignette and all the exemptions you can get, we suggest you take a look at the dedicated article.

Incentives for car scrapping 2020 Lombardy

In Lombardy are valid all the 2020 car scrapping incentives present in other Italian regions. Until November 2019 there was then the Renew Cars for private individuals program that allowed higher discounts in case of scrapping polluting cars. This type of initiative ended at the end of 2019 due to the exhaustion of the allocated funds.

However, till date, January 2020, the 2019-2020 Renew notification for commercial vehicles is still active. All micro, small and medium-sized enterprises based in Lombardy can apply for this call until 30 September 2020 and receive a non-refundable grant for the purchase of a low-emission electric or hybrid vehicle.

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