Dealers told to repay rebates

A number of dealers have been told to pay back rebates issued to them under the clean car discount (CCD) when registering electric vehicles (EVs) after breaking the rules by then selling those cars within three months.

The New Zealand Transport Agency (NZTA) has identified almost 200 breaches of the scheme where motor-vehicle traders received EV subsidies of up to $7,000 per car, reports RNZ.

Under the CCD, which was axed by the government at the end of 2023, dealers had to sign a declaration at registration time saying they would use the vehicle as a company, courtesy or demonstration car for at least three months.

NZTA has not publicly identified the dealers who allegedly flouted this law because of the “integrity of its investigations” but says they have been told to repay the money to the agency.

“Where a breach has been identified, ie a vehicle has been sold before the three-month period, a repayment of the rebate is required,” it told RNZ.

More than 10,000 subsidies were paid out through the CCD in December, the final month of the scheme, with 1,906 of those going to dealers. 

Allegations of traders selling EVs after registering the cars in their names and securing rebates were raised with the NZTA earlier this year.

The agency subsequently found listings for about 300 cars that had recently received the CCD and it spoke to eight dealerships about the matter.