The Clean Car Discount

Data supplied for the Government Clean Car Discount is subject to confirmation by Te Manatū Waka – Ministry of Transport and could change without notice.

What does the Clean Car Discount mean for me?

If you are in the market for a new car, it may be a good idea to think about your budget, and what you will primarily use your car for. If you are mostly going to be running around town, or your life stage has changed from taxi-driving parent to empty nester, it could be sensible (and more cost-effective) for you to consider down-sizing your vehicle to a more fuel-efficient petrol vehicle or considering an EV or hybrid.

Buying a car is a big investment no matter what point you are at, and price is still a major factor for many of us. With a starting price of around $50,000 for a new PHEV or EV, it may be that you can’t afford one initially.

An equivalent 3 or 4 year old PHEV or EV could be a more affordable option, but be aware, demand may have increased since the programme started and current stock in the country could be limited. Another thing you may need to consider is the life of the batteries of a second hand EV or PHEV as replacement lithium ion batteries can be very expensive to purchase.

If your new car budget is around $20,000 to $40,000, then a low emission petrol or hybrid vehicle may be a more realistic option. Many of these types of vehicles qualify for a Clean Car Discount rebate or don’t incur a fee.

Efficient cars don’t have to be super small either, and in the case of Suzuki, they offer a range of SUVs and cars starting from 94g/km CO2 emissions. Read more about the pros and cons of petrol, hybrid and electric vehicles here.

With light weight platforms and the latest engine technologies such as BoosterJet, you can reduce your carbon footprint without breaking the bank. When you buy a new Suzuki, you will not incur any fees and depending on which vehicle you choose, you can receive a rebate of up to $3,370 (including GST).

To see how far you can go and how our models compare with other cars, try Suzuki’s easy-to-use Fuel Economy Calculator.

Fuel economy and CO₂ emission results are from official NEDC assessments.

How do I claim the Clean Car Rebate?

To claim the Clean Car Discount rebate, you will be able to apply online on the Waka Kotahi NZ Transport Agency website by uploading the following supporting information – the vehicle’s number plate, a copy of the vehicle sale agreement and your bank account details as the registered owner.

The rebate is paid directly to the registered owner after Waka Kotahi has verified the information provided is correct. If you are buying a car that has a Clean Car Discount fee, you will need to arrange for it to be paid at the time of registration. Get in touch with us and we can provide further guidance on the process.

What is the Clean Car Programme?

The Clean Car Discount is part of the Clean Car Programme, one of the Government’s initiatives to reduce climate change and CO₂ emissions to net zero by 2050. Around 47% of CO₂ emissions in New Zealand are produced by the transport sector, including privately owned cars, and it is this group that the Clean Car Programme is looking to influence.

The Clean Car Programme is made up of the:

• Clean Car Discount – encouraging customers to purchase lower emission new and used import vehicles.
• Clean Car Standard – encouraging vehicle importers and distributors to sell low or no emission vehicles.

The Clean Car Discount

On April 1 2022, the second stage of the Clean Car Discount will be introduced. Under the programme you will be able to buy a low or zero emission vehicle and be able to claim a rebate or partial refund.

Initially the Clean Car Discount programme only included EV and plug-in hybrid models. From April 2022 other petrol and hybrid vehicles, like non-plug-in hybrids (Swift Hybrid) and very economical petrol cars will now qualify for a rebate. Those with very high emissions, such as utes and large SUVs, will incur a fee and some vehicles in the mid-low emission range will have no fee or rebate.

The vehicle will need to be a new or a used import registered for the first time in New Zealand between 1 April 2021 and 31 December 2022 and have at least a three star safety rating (as published on the Rightcar website). The purchase price of the vehicle also needs to be under $80,000 including GST and on-road costs.

Designed to be self-funding, the fees collected from the Clean Car Discount Programme will cover the rebates given out.

The Clean Car Standard

The Clean Car Standard is a target set by the Government (subject to legislation being passed) aimed at regulating importers of vehicles and incentivising them to bring cleaner cars into New Zealand. The targets are based on vehicle weight so a small, light vehicle will have a much tougher CO₂ emission target to achieve than a heavier vehicle. Imported vehicles that exceed the target will incur a penalty and those with low or no emissions will receive a credit.

The Clean Car Standard targets have commenced from 2022 and will progressively become lower each year. Distributor penalties or credits will commence from 2023

How is the Clean Car Discount calculated?

From 1 April 2022, the Clean Car Discount will change from a flat fee to a sliding scale based on the CO₂ emissions of the vehicle.

For consistency, the Government has converted all of the car manufacturer’s fuel economy and CO₂ emission figures to the Worldwide Harmonised Light Vehicle Test Procedure (3P-WLTP) emissions testing regime. The Clean Car rebate or fee is then calculated using these figures.

The higher the CO₂ g/km rating the greater the fee you will have to pay – up to $5,175 for a new car or $2,875 for used import. The lower the CO₂ g/km rating the greater the rebate. You will be able to claim back up to $8,625 for new car or $3,450 for a used import. With a vehicle over 146 CO₂ g/km and under 192 CO₂ g/km, you will not have to pay the fee or receive a rebate.

Do I have to buy an EV or hybrid right now?

It’s important to know there is no pressure for you to buy an electric or hybrid vehicle straight away. There will still be petrol cars for sale, and petrol stations for refuelling, for a long time to come while infrastructure such as EV charging stations are introduced.

At the end of the day, the Clean Car Programme has been set up to encourage us to consider the car we drive. As the technology becomes more readily available, there will be more choice on what lower emitting vehicles are available in New Zealand.

Remember you can still considerably reduce your current carbon footprint by downsizing your vehicle or considering efficient petrol vehicles. You can not only save on running costs but also reduce your vehicle emissions.

When you are ready, get in touch with us and discuss how you will use your new car and what you would like it to do. We are happy to help and are here to get you moving in the direction you want to go.