The German Ministry of Finance has notified other ministries in writing about higher price caps for new company cars for the coming year.
Government spending on executive vehicles is rising
According to Bild, ministers, state secretaries, and senior federal officials will be able to allocate more funds for new company cars in 2024 than in the current year.
The Treasury Department justified the increased limits by inflation and the transition to electric cars, Bild reported.
For ministers, the 2024 cap for buying, renting, or leasing a business limousine is set at 105,000 euros plus additional costs for radio equipment, blue lights, special markings, and related gear.
Ministers can order long-wheelbase models from Audi, BMW, or Mercedes.
In 2023 the limit stood at 83,000 euros. Over five years, the cap has nearly doubled from 59,800 euros, Bild noted.
Substantial budgets for limousines
State secretaries may spend up to 98,000 euros on a new car, a 21,000 euro increase from the current year. For top officials, including ministerial directors and government spokespersons, the new limit is 72,000 euros, an increase of 14,500 euros.
The daily paper remarked that ministers typically opt for the high-end L versions of premium limousines offering extra space and comfort.
Prices on the showroom floor often exceed the ministry’s cap, but manufacturers offer government discounts for promotional purposes, helping sales stay within the stated limits, Bild found.
It is important to note that the price cap does not apply to armored or heavily fortified limousines used to transport the chancellor or other highly protected officials. Those special vehicles are acquired through a centralized process by the Federal Criminal Police Office and assigned to individuals entitled to protection.
Examples of current service vehicles include the following: Justice Minister Marco Buschmann uses an Audi Q8 with electric drive and an Audi A8 hybrid; Labor Minister Hubertus Heil drives a Mercedes S-Class hybrid; Agriculture Minister Cem Özdemir uses an Audi e-tron with electric drive; Family Minister Lisa Paus drives a BMW i4 eDrive40; Environment Minister Steffi Lemke drives an Audi e-tron with electric drive; Housing Minister Klara Geywitz uses a BMW 7 Series.
Used ministerial cars
For security reasons, details about the official car of Defense Minister Boris Pistorius and the vehicle of Health Minister Karl Lauterbach were not disclosed. Lauterbach has faced threats during the recent health crisis, including death threats.
Luxury limousines are typically used for a year or two before being sold, often at or above the purchase price. Used ministerial cars can be found on the federal government’s portal, vebeg.de.
According to a report from the Ministry of Finance, ministries and related institutions sold company cars for 32.5 million euros in 2022. The realized revenue exceeded the original budget by about 2.2 million euros, as reported by Bild.
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Source: wPolityce