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FINANCE

‘How we used a government bonus to buy an electric car in Italy’

People looking to buy an electric car in Italy can now make huge savings on both the purchase price and the future running costs. But there is one catch, as writer Mark Hinshaw explains.

‘How we used a government bonus to buy an electric car in Italy'
The new Renault Zoe on the Le Marche coast. Photo: Sunny Savina Bertollini

We have owned a plain, black Kia Picanto for three years. Paid 2,000 euros cash for it. A basic car, it sports a radio, CD player, and AC but it has no cruise control. It’s been a good car. It was ten years old when we bought it and its been a dependable little workhorse. The fold-down rear seats and hatchback have allowed us to transport everything from groceries to IKEA furniture packs, to lumber. The body is in excellent shape. Indeed, it still looks almost new; no scratches or dents anywhere.  

READ ALSO: ‘Expect the unexpected’: What you need to know about driving in Italy

So, it quite pains me to think of soon dropping it off to be crushed into a cube by a giant compactor.

But I’m getting ahead of myself.

We recently decided to purchase an electric car. Neither of us has had one before and have not even driven a hybrid. I’ve owned maybe a dozen cars in my life – all standard internal combustion cars. I used to mentally calculate the miles per gallon consumed at each filling. I was never “in love” with any of them but the freedom of independent mobility was seductive enough to keep me doing trade-ins and upgrades every few years.

When electric cars began to appear in the US I was only mildly intrigued. Right. You can maybe use it in the city neighborhoods but forget about road trips. I never seriously considered one. Even despite knowing the facts about oil supply depletion, drilling in sensitive settings, and air pollution. 

To many Americans, having a car seems to be a birthright. It’s a bit of cognitive dissonance at work.

But, now that we live in Italy, a new world has opened up in the Old World. We have been looking at more than a dozen truly amazing electric cars; I had no idea the designs had progressed so far beyond the initial Spartan versions. Some are still pretty plain, but oh my, some resemble Italian racing cars. It finally dawned on some car designer that style sells. I was impressed.

After some viewings and test drives, we narrowed the selection to a Renault Zoe. A sleekly sculpted and brightly colored deep red body with a roomy interior marked by a flat computer screen on the dashboard. It runs more than 300 km between charges – a sizable road trip. The high tech / high style design matches the treats that go with it. By treats, I am referring to the financial incentives.

Incentives. This is what got us moving in this direction. The number and types are almost hard to believe.

First, there is the one-time grant from the Italian government – 10,000 euros are automatically deducted from the purchase price.

The “catch” is you must destroy your current petroleum-fueled vehicle. Hence, my sadness in the first paragraph. Italy is determined to phase out internal combustion. You cannot keep your old car. Not sell it. Not give it to friends or relatives. It is stripped of parts for recycling and the frame goes to the compactor as part of the deal. <a huge sigh>

Second, Renault offers its own sweet inducement. Perhaps after not selling many cars during the pandemic and having an over-supply of inventory, they are offering their own discount of another 6,000 euros. This is massive. 

The price dropped from 38,000 to 22,000.  In two big swoops.

Photo: Sunny Savina Bertollini

As Ron Popeil used to shout on late-night American TV about vegetable slicers: “But, wait, there’s more!”

Third, our auto insurance rate is reduced by up to 50%. We already pay an amount that seems not excessive, but this is a real bonus. 

For longer road trips, we used to rent a more comfortable car, spending hundreds per year on fees and supplemental insurance. When we went in to cancel the old policy and sign the new one, the agent handed over a partial refund – cash.  This in spite of the fact that the coverage was significantly greater.

Fourth – and I can barely fathom this one – we are allowed to drive into AND park inside Italy’s ZTLs, or ‘Zona Traffico Limitato’ areas.

These are common in Italian towns and cities. They forbid cars in certain places, except for those with residence permits. If you are caught inside one – usually by a camera kiosk with clear photo evidence of your guilt – you will soon receive a fine by mail that can approach 200 euros. Which increases hugely if not paid by a certain date. We would get several of these every year due to not knowing where the boundaries were or missing an important sign. It’s merely cold comfort to know we are not the only ones who get dinged. Even Italians can easily make this painful error.

Life in Italy: ‘How our shopping habits have changed since we moved from the US’

Fifth, and of no small importance, we avoid the required annual road tax and car inspections. 

Normally, these must be done; roadside stops by carabinieri police will often check that these are up to date. Woe to those who cannot produce current proof. You don’t want to know.

Finally, another unexpected benefit. The car can read signs indicating traffic allowable traffic speeds, even temporary ones for road construction. Driving to Rome would always net us a ticket in some remote suburb with a sudden reduced speed limit. The car automatically slows down to the limit when it sees the sign. 

We did the math. The savings from not buying gas, not maintaining an internal combustion car, not paying the normal taxes, no ZTL fines, no speeding tickets, and not needing to rent cars for long road trips means buying an electric car virtually pays for itself. Not quite, but close. Close enough for it to make a lot of sense. Which is exactly the point of the incentives.

One more little perk to add: If we upgrade the electric service for our house to 7kw, the electric utility will install a charging unit. So when we do that, there will be little need to go to a charging station. 

Photo: Mark Hinshaw

In the meantime, the mayor of our village tells us that four stations have been ordered and are soon to arrive. As with so many things, Fabrizio is really on top of municipal services. (He also recently got fiber optics installed for everyone.)

Now, we did need a loan to buy this car. Following some communication with our commercialista (accountant) for key numbers, the application was submitted to Renault HQ in France. We heard back within a few days and the loan was approved. We picked up the car ten days after we picked it out.  

We are already planning a road trip.

Mark Hinshaw is a retired city planner who moved to Le Marche with his wife two years ago. A former columnist for The Seattle Times, he contributes to journals, books and other publications.

Would you like to contribute a guest post to The Local? Get in touch.

Member comments

  1. Very interesting article. Can you tell me what village Mark Hinshaw lives in? It sounds like a great place to live!

      1. Thank you. Do you have earthquakes in that area? Do you speak fluent Italian? What is your broadband internet speed in mbps now that you have fiber optic cable? Do you get any American TV?
        Thank you so much for telling me where you live. Julir

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MONEY

EXPLAINED: How to get your €200 cost of living bonus in Italy?

The Italian government is sending one-off €200 payments to cushion the rising cost of living, but they will not be automatic. Here is how to receive your compensation.

EXPLAINED: How to get your €200 cost of living bonus in Italy?

The €200 cost of living bonus was announced in May 2022, alongside several government measures aimed at offsetting the increasing cost of living, as The Local reported.

Employees, as well as the self-employed, pensioners and the unemployed, will be eligible to receive the €200 payment if they have an annual income of under €35,000 gross, according to a decree law passed in May.

However, the bonus is only automatically made to those who are state employees or pensioners. Those in these categories will be identified by the Ministry of Economy and Finance and INPS and receive €200 along with their salaries or pension payments.

What if I work in the private sector?

Employers working in the private sector should receive their payments in their July pay packet. First, however, they need to submit a self-declaration to their employer, who will pay the sum with the July pay check and then recover the funds from the state later.

The decree doesn’t specify a deadline for the submission, but as the payments should be made in July, the paperwork needs to be filed before that – so don’t forget to talk to your employer and arrange it.

READ ALSO: EXPLAINED: The rules and deadlines for filing Italian taxes in 2022

The self-declaration serves to establish that the worker has all the requirements to be a beneficiary. That means the person does not go over the income ceiling for the benefit, for example.

You will also have to declare that you will not receive a €200 bonus from other sources, such as from being a recipient of the citizen income or through another employment relationship.

How can other workers apply?

Italy’s government expanded the bonus payment scheme to more people in early May, as The Local reported.

Seasonal workers, domestic and cleaning staff, the self-employed, the unemployed and those on Italy’s ‘citizens’ income’ were added to the categories of people in Italy eligible for a one-off €200 payment.

READ ALSO: Italy expands €200 payment scheme and introduces public transport bonus

These other categories of workers will not receive automatic payment, though. Instead, they need to make a special request to INPS to receive the bonus.

There are different deadlines for different people, so “domestic workers” (lavoratori domestici) need to apply by September 30th. Other workers, such as seasonal, for example, have until October 21st.

You can apply for the bonus on the INPS website. The payments will be made at a later date.

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