BIL Sweden, the Swedish trade association for manufacturers and importers of cars, trucks and buses, reported a huge increase in car and light truck purchases this year. Compared to last July, car purchases increased 89%, while light truck purchases went up 219% (). Before you get all worked up about these jumps, it was expected. Last July, purchases were way, way down because of the the bonus-malus incentive that was just going into effect. Then, people thought “New car right now? Um, no.” But now, it’s more like “Bonus-malus-shmalus. We still need a new car (or light truck).”
Side note: Some translate bonus-malus to “discount-premium,” and others more to “carrot-whip,” meaning that purchasers of new vehicles got money back if they purchased an environmentally friendly car, or, paid extra taxes if they bought a car that was deemed not so friendly.
BIL Sweden thinks this yo-yo vehicle market makes planning difficult for the industry and for the consumer. It is therefore asking the government (nicely) to procrastinate on putting the new emissions test standard into effect, that is otherwise set to start at the beginning of next year. The new method for measuring vehicle emissions, called WLTP, is the new EU standard, but BIL Sweden’s Mattias Bergman is thinking that any new standard should be introduced soonest in 2021. This to avoid creating uncertainty and confusion for the Swedish consumer, of course. By the way, this would also put off new and higher taxes for most cars, even on some hybrid cars that would suddenly and surprisingly end up on the malus side of bonus-malus with the new rules.
Buying something with an eye to taxes is sort of like playing Whac-a-mole, as many car and truck buyers perhaps have come to realize.