Time running out for government car buying subsidies

LAST UPDATED: 5 Sep, 2014 @ 00:24
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Time running out for government car buying subsidies

THINKING of buying a car? Be quick – Spanish government subsidies will soon be running on empty.

According to motor vehicle association Ganvam’s president, Juan Antonio Sanchez, there is only enough money left to last until the end of October.

The pot is emptying for PIVE 6, a national scheme that offers between €2,000 and €3,000 in subsidies to new car buyers

In the sixth consecutive year of PIVE, the government had set aside €175 million in January to last through 2014, but buyers have snatched up the deals quicker than expected, making the scheme a great success.

Not only did PIVE keep Spain’s automotive industry solvent, the government reportedly earned €2 for every €1 it invested.

PIVE, however, has greater aims than turning profits.

Spain’s cars are on average the oldest in Europe, with more than 50% of road traffic made up of cars 10-years-old or more.

These cars not only release much more harmful emissions, but they are much less safe on the road as they are more difficult to handle and more easily damaged in crashes.

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