FDM urges electric car buyers to act before tax change

Buyers considering an electric car priced above 366,200 kroner may save money by purchasing this year, consumer economist Ilyas Dogru of FDM says, DR reports. A proposed registration tax on more expensive electric cars is due to take effect next year.

Under the current rules, electric cars are exempt from registration tax. The government’s proposal would introduce the tax for cars costing more than 366,200 kroner from next year, with the price threshold expected to fall in subsequent years. It could reach 283,300 kroner by 2031, Berlingske reports.

Dogru says a buyer choosing a car priced at 400,000 kroner would save 25,000 kroner by buying it this year rather than next. But the tax depends on the car’s delivery date, not the date the purchase contract is signed. Some electric cars have delivery times of around three months, and certain models may not be available until 2027.

FDM expects some consumers to bring forward purchases to avoid the tax. Its calculations for 25 electric car models show that 10 would remain unaffected if buyers chose the cheapest version, while only four would remain unaffected when fully equipped with optional extras. Dogru expects this could lead more buyers to choose cars with less equipment.

He also advises buyers of new cars to negotiate, saying strong competition could lead manufacturers to absorb some of the price increases. The used-car market is more favourable to sellers, he says, as fuel prices have been pushed up by the US war against Iran and many consumers are choosing used electric cars.

FDM’s advice is to check the delivery date, consider buying this year if the car costs more than 366,200 kroner, and consider reducing optional equipment to avoid the proposed tax in 2027.