The EV grant holding period: selling, damage and claw-backs

The grant comes with a condition that lasts 36 months. What you must report in that time and how BAFA deals with a sale, a write-off, a return under warranty and a death.

Worked through by Radif Partners · Editorial policy · How we calculate

Selling early: how much of the holding period is missing

Months missing

18

Kept18 months
Holding period endsOctober 2029
Purely pro rata€2,000

BAFA decides case by case on a partial or full claw-back; the pro rata figure is only an order of magnitude, not a decision.

Calculate the grant →

If you receive Germany’s 2026 EV grant, the car must stay registered to you in Germany for at least 36 continuous months. The period starts on the day of registration; a car registered on 15 November 2026 must be kept until 14 November 2029. If it is sold, deregistered, taken abroad or transferred to someone else before then, you must report this to BAFA without delay. BAFA then decides case by case, at its due discretion, whether to reclaim the grant partly or in full; no fixed formula has been published. A write-off or theft follows the same procedure, taking the circumstances into account. If the purchase is reversed because of a defect, nothing is reclaimed provided an equivalent eligible replacement is registered within 6 months; the holding period is extended by the gap. If the keeper dies, the heirs take over the remaining time. A 24-month lease is not long enough for the holding period.

What the holding period requires

The funding guideline ties the grant to a minimum holding period. BAFA puts it this way: the vehicle must stay registered to the applicant in Germany for at least 36 continuous months. That contains three conditions: the same person, the same registration without interruption, and Germany.

End of the holding period by registration date
RegistrationHolding period endsEarliest sale without reporting
1 March 202628 February 20291 March 2029
15 November 202614 November 202915 November 2029
30 June 202729 June 203030 June 2030
31 December 202930 December 203231 December 2032

Selling or deregistering early

If you sell or deregister before then, you must notify BAFA without delay. BAFA then decides at its due discretion whether and how much to reclaim, partly or in full. It has not published a formula. The table below therefore only shows an order of magnitude, the figure that would result if BAFA worked purely pro rata on the missing months. An actual decision can be higher.

Order of magnitude of a pro rata claw-back, not a BAFA rule
KeptMonths missingPro rata on €5,000Pro rata on €3,000
6 months30€4,167€2,500
12 months24€3,333€2,000
24 months12€1,667€1,000
30 months6€833€500
35 months1€139€83

The small calculator above works out the missing months for your dates. Whether selling early would pay despite a claw-back depends on resale value and your reasons; the grant is only one part of that sum.

Write-off and theft

For events outside your control, the same procedure applies with a difference in how things are weighed. You tell BAFA what happened and explain the circumstances. BAFA decides on a partial or full claw-back taking the individual case into account. Keep ready whatever supports your case: the assessor’s report after an accident, the police report after a theft, the deregistration certificate and, if available, the insurer’s settlement.

Return under warranty

A special case is reversing the purchase or lease under statutory warranty rights (Wandlung). BAFA then reclaims nothing if an equivalent replacement that qualifies under the guideline is registered within 6 months of the reversal. The holding period is extended by the time between the return and the new registration.

Example of a return with a three-month gap
StepDate
First car registered15 November 2026
Returned because of a defect1 June 2027
Replacement to be registered by1 December 2027
Replacement actually registered1 September 2027
Original end of holding period14 November 2029
Extended end of holding period14 February 2030

Report the replacement to BAFA without delay, with the deregistration certificate of the first car and the registration certificate of the new one. “Equivalent” is not defined further; a car of the same class that would qualify in its own right is the obvious reading.

Death of the keeper

If the keeper dies before the holding period ends, re-registering the car to the heir does not harm the grant. The heir must then complete the remaining holding period. The inheritance is proven to BAFA with a certificate of inheritance (Erbschein).

What is not a change of keeper

The holding period concerns registration, not who drives. Your partner, children with a licence or friends may use the car as long as it stays registered to you. A financed car whose part II registration certificate (Zulassungsbescheinigung Teil II) is held by the bank as security also stays registered to you, because the keeper is whoever is named on part I. A workshop repair, a courtesy car for a few days or laying the car up for a while are different from a sale. Be careful with deregistration, though: BAFA requires continuous registration, and deregistering must be reported. If you plan seasonal plates (Saisonkennzeichen), clarify it with BAFA first.

Three cases from practice

A job abroad. An engineer gets an offer in Switzerland after 20 months and takes the car. The German registration ends and 16 months are missing. He reports the move to BAFA, which decides on a claw-back.

An accident that was not her fault. A commuter’s car is written off after 14 months and the other driver’s insurer pays. She reports it with the assessor’s report and deregistration certificate. BAFA takes the circumstances into account; a replacement is not required here because it is not a warranty return.

A battery defect. A couple returns the car after eight months because of a recurring fault and registers an equivalent model three months later. Nothing is reclaimed and the holding period is extended by those three months.

Leasing, moving, business use

  • Leasing: a 24-month contract does not meet the holding period. You must extend it or buy the car so that it stays registered to you for 36 months. More under leasing.
  • Moving abroad: the car must stay registered in Germany. Taking it with you ends the holding period early; see new to Germany.
  • Business assets: the car may not be moved into a business during the holding period; see self-employed.
  • Moving within Germany, new plates: as long as you remain the keeper and the car is registered in Germany, re-registering changes nothing.

After the holding period

Once the period is over, you are free. You can sell the car, transfer it to your partner, take it abroad or deregister it without asking BAFA and without a claw-back. The duty to keep documents, however, runs longer than the holding period itself.

Reporting: how and what

Report a change as soon as possible, not only when BAFA asks. Have your grant notice number to hand, the date of the change and the evidence: the buyer’s contract, deregistration certificate, assessor’s report, police report, certificate of inheritance. Keep all documents for 5 years. The procedure for the original application is under how to apply.

What buyers in Germany ask

What happens if I sell the funded EV before 36 months?

You must report the sale to BAFA without delay. BAFA then decides case by case, at its due discretion, on a partial or full claw-back of the grant. It has not published a fixed formula. Keeping a sale quiet risks more than repayment, because a false statement can have consequences beyond the grant.

Do I repay the grant after a write-off?

Not automatically. Report the write-off or theft to BAFA and explain what happened. BAFA decides, taking the individual circumstances into account, on a partial or full claw-back. Documents such as the assessor’s report, the police report of the theft and the deregistration certificate help support your case.

How does a return under warranty affect the holding period?

If the purchase or lease is reversed under statutory warranty rights, BAFA reclaims nothing provided you register an equivalent, eligible replacement within 6 months. The holding period is extended by the time between the return and the new registration. Report the replacement with the deregistration certificate and the new registration certificate.

Can I transfer the car to my partner during the holding period?

The car must stay registered for 36 months to the person who applied. Transferring it to someone else, even a partner in the same household, is a change of keeper and must be reported to BAFA before the period ends. BAFA only names an exception for inheritance.

Can I move house within Germany during the holding period?

Yes. The condition is that the car stays registered to you in Germany. Moving to another town and re-registering with the new registration office changes nothing, as long as you remain the keeper. Moving abroad with the car is different: the German registration ends, and that must be reported.

Related

Guideline, laws and sources

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