Government proposes scrapping premium for purchasing new cars

On 22 September 2025, the Government submitted to Parliament a legislative proposal concerning a fixed-term scrapping premium for passenger cars. Scrapping premiums could be applied for concerning the period 1 October 2025–31 December 2027. Applications could be submitted when the act is in force. The act is proposed to enter into force on 1 January 2026.

“The scrapping premium responds to a real need because in Finland the average age of cars is 14 years. There are very few EU countries where cars are older than this, Estonia and Romania among them. The scrapping period boosts the renewal of the vehicle fleet, and now the new car and its fuel can be selected from numerous options from combustions engines to hydrogen. It is most important that the Finns can drive safely and use cars that suit their daily lives the best,” Minister of Transport and Communications Lulu Ranne says.

The Government proposes that the state would offer a scrapping premium of EUR 2,500 for the purchase of a new zero-emission car powered by electricity or hydrogen, and EUR 2,000 for a new car powered by another fuel type, provided that its CO2 emissions do not exceed 140 g/km.

The scrapping premium scheme would run until 31 December 2027 or until the budget appropriation allocated for it has been exhausted. According to the government proposal, EUR 20 million in state funding would be earmarked for the scrapping premiums for 2026-2027.

When the act is in force, the Finnish Transport and Communications Agency Traficom would be responsible for processing the applications and granting the scrapping premiums.

How to apply for the scrapping premium?

The application period for the scrapping premium would begin on 1 January 2026. To apply for the scrapping premium, the applicant should submit the contract concerning the order for the new car and the registration number of the old car to be scrapped to the Finnish Transport and Communications Agency Traficom. The car to be scrapped should have been in use on the road uninterrupted for at least 10 months during the year immediately preceding the scrapping.

A condition for the scrapping premium is that, when purchasing a new passenger car, one passenger car first-registered in 2015 or earlier that has been owned by the applicant for at least the year immediately preceding the scrapping is scrapped. Another condition for the premium is that the new car has not been first-registered and it is purchased for own use. The car should be first-registered in Finland. According to the government proposal, the contract concerning the order for the new car and the scrapping certificate for the old car should be dated between 1 October 2025 and 31 December 2027.

It should be noted, however, that this is just the Government’s proposal that has not yet been discussed in Parliament. The parliamentary proceedings may lead to changes in the legislative proposal, or Parliament may also reject it

The aim is to renew the vehicle fleet

The aim of the government proposal is to boost the sales of new cars and promote the renewal of the vehicle fleet. The renewal of the vehicle fleet improves traffic safety. Compared to most other EU countries, the average age of the vehicle fleet is quite high in Finland. The higher premium granted to zero-emission vehicles aims to increase the percentage of zero- and low-emission vehicles on the roads.

What’s next?

Parliament will begin to discuss the proposal with a referral debate in a plenary session. The proposal will then proceed to the committee. After the committee submits its report, the process will continue in a plenary session.

The proposal is linked to the Budget proposal for 2026, and both proposals are intended to be considered jointly. The proposed act should to enter into force as soon as possible after Parliament has approved the Budget for 2026.

Inquiries:

Anu Aavamäki-Tortosa, Senior Specialist, anu.aavamaki-tortosa(at)gov.fi, tel. +358 295 342 026

Pyry Takala, Director of Unit, pyry.takala(at)gov.fi, tel. +358 295 342 384