Plan PIVE Grants For New Cars 2016
The last Plan PIVE (Programa de Incentivos al Vehículo Eficiente) was approved on 14 May 2015 and was originally planned to end on 31 December. However, as funding is still available it has been extended until 31 July 2016. Read on to see how to get a non-means tested grant when you buy a new car.
What Are The Plan PIVE Requirements?
Although Plan PIVE grants are not means-tested, you must be resident in Spain and have a NIE number. Grants are only available when you scrap a car that must be at least 10 years old (7 years for vans or similar), you must have owned it for a least a year and the car must have passed the official ITV inspection.
How Much Is The Grant?
The Plan PIVE 8 grant is 1500€ (previously 2000€), which is reduced from the cost of the vehicle at source. This means you pay less when you buy, rather than having to pay full price and wait for the grant to arrive in your bank account. Families with three or more children that buy a vehicle with more than five seats will get an additional 750€ (total 2250€ grant).
Half of the grant is a Government subsidy and must be included in your annual tax return, the other half is a discount applied by the manufacturer and is not subject to tax. The amount of tax applicable will depend on your income in the year you purchase the vehicle.
What About The Paperwork?
If you want to take advantage of the grant, you won’t need to worry about sorting out any paperwork yourself as the car dealer will do it for you. Normally this will include the collection of your old car, transport to a scrapyard and getting the destruction certificate (necessary for the grant). However, if you decide to take care of scrapping your car yourself, depending on the vehicle, the scrapyard may give you between 200-300€. In this case all you need to supply to the car dealer is the destruction certificate.
What Type Of Cars Are Eligible For Plan PIVE Grants?
There are various types of vehicles that are eligible for the Plan PIVE grants, although they must be fuel-efficient and cannot cost more than 25,000€ (net cost before sales tax). Electric or hybrid cars are not subject to this maximum cost. For large families the price of the vehicle is increased to 30,000€ (net cost). Category details for eligible vehicles can be found at the official IDAE website, but it’s probably easier to ask a car dealer specifically about the vehicles you’re interested in.
If funding runs out before the end of July 2016, a new Plan PIVE may or may not be announced. Given the uncertainty, if you’re thinking of buying a new car it would be better to do so sooner rather than later.
If your Spanish is not up to negotiating with a car dealer, then take a look at our exclusive deal with Busco Coche Por Ti – a Personal Car Shopper based in Madrid. We have arranged for any Money Saver Spain visitor to get a 20% discount, so you’ll only pay 240€ (+ tax) instead of their usual 300€ fee. As they can get you the best price on a new car, so you’re sure to recover the fee in a lower-priced new vehicle.