The Council of Ministers approved on Thursday a third decree law introducing new measures to assist those affected by the DANA floods, totaling 2.274 billion euros. Of that amount, 465 million will support people purchasing a car or motorcycle after sustaining damages, whether new or used. The package aims to cover every affected vehicle, estimated at around 120,000, according to the Government of Spain.
The so-called Plan Reinicia Auto will consist of direct grants that do not have to be repaid for vehicle purchases, determined by vehicle type (passenger cars, vans, light trucks, and motorcycles) and by age (new or used up to three years). It will retroactively include all vehicles bought, acquired, and registered in Spain from October 30, 2024 inclusive. The subsidies application window will run until June 30, 2025, to give buyers time to take advantage of the measures.
The plan was outlined by Prime Minister Pedro Sánchez, with Economy Minister Carlos Cuerpo explaining that the grant amount per vehicle will range from 500 to 10,000 euros and can be added to indemnities already paid by the Insurance Compensation Consortium. To date, about 3,500 vehicles have received an average indemnity of 7,810 euros per vehicle from the Consortium, according to Cuerpo.
Thus, alongside the 7,810 euros average indemnity, new-vehicle purchases will receive an extra 10,000 euros for electrified cars and 5,000 euros for hybrids or combustion engines. For used vehicles, the bonus will be between 4,000 and 2,000 euros, respectively. For motorcycles, new electric models will receive 2,000 euros and 1,000 euros for hybrids or combustion; used motorcycles will receive between 1,000 and 500 euros.
In addition, the Government will provide an extra 1,000 euros for people with reduced mobility, which is added to a separate package of 3 million euros to improve accessibility and the ability to adapt vehicles, according to the minister.
Publish Vehicle Prices
To increase transparency in the purchasing process, the Government will require sellers to publish the prices of vehicles that were available before October 29, 2024, for both new and used models, ensuring that subsidies are not absorbed by price adjustments.
As a general rule, each subsidy applicant may receive only one grant per damaged vehicle. For individuals who can prove more than one damaged vehicle registered with the DGT, a maximum of two subsidies applies. For legal entities, a maximum of five subsidies.
The purchase subsidy plan, together with the indemnities from the Consortium, aims to cover all vehicles affected by the DANA event, totaling around 120,000. The Government is also negotiating with dealers to determine their involvement, not only in price but to direct more stock to Valencia and the broader Levante area.
Trucks
The Spanish Association of Automotive and Truck Manufacturers (ANFAC) has welcomed the Government’s initiative for its diversity and technological inclusivity, noting it covers all technologies available in the market and its speed in enabling affected people to access subsidies quickly. ANFAC has also urged the Government to consider extending subsidies to heavy vehicles that have been affected.