High Incentives In Norway Prevent EVs From Being Repaired?
All the regulations of the market have both positive and negatives sides and incentives to buy electric cars are no different.
In Norway, where incentives for all-electric cars are highest, sales are very high – and because of the lack of 25% VAT, buyers get the highest benefit when purchasing expensive electric cars.
And while price of the car is heavily lowered, there are situations that pop up from time to time that question the economic value of fixing versus buying new.
According to reports from Norway, even moderate damage to the brand new Tesla could exceed the mark of 60% estimated market value used by insurers (note that parts are still expensive without incentives) and the car will end its journey early.
Well, if nothing changes, someone would need to pay for those new Model S EVs (instead of repairing the damaged one) and insurance rates will go up, but the problem of moderately damaged cars put out of service will remain – it’s bad from an economical perspective and damaging to the environment.