Sell your old car.
Buy electric.
Why trading in at the dealer is almost always the worse deal, and how you can keep several thousand euros more in your pocket when switching to an EV.
10 min read
The problem with trade-ins
Most people switching from a combustion engine to an electric car take the obvious path: drive to the dealer, configure the new EV, and trade in the old car. Sounds convenient. It is. But convenient and financially smart are two different things.
The issue: a trade-in is not a fair valuation of your old car. It is a calculation where the dealer factors in their margin, risk, and storage costs. The offered trade-in value is typically 10 to 20 percent below actual market value. On a vehicle worth 15,000 euros, that is 1,500 to 3,000 euros left on the table.
The dealer profits twice: on the new car and on the undervalued trade-in. You only profit once, and less than you should.
The math: Trade-in vs. separate sale
Here is a real-world example we see regularly:
Trade-in value + new-car discount vs. independent purchase price + separate new-car discount. In many cases the second variant is equal or higher. Get a binding offer for both paths and compare net against net.
That money can go straight into the down payment for your electric car. Or into a home wallbox charger. Or simply stay in your account.
The optimal switching process
Step 1: Have your combustion car professionally valued. At mirkaafenaerenauto.lu, this is free and non-binding. You will know exactly what your car is worth, not what a dealer tells you.
Step 2: Sell the combustion car separately. Bring it to mirkaafenaerenauto.lu, receive your payment usually within 24 hours, and take the bus or a rental car home.
Step 3: Buy your electric car independently. Without a trade-in, you negotiate the new car price on equal footing.
Step 4: Apply for the Luxembourg EV subsidy. The premium is tied to the new purchase, not to a trade-in.
Luxembourg EV subsidies
Luxembourg subsidises the purchase of electric vehicles with a state premium. The amount depends on the model and purchase price. Important: you receive the subsidy regardless of where or how you sell your old car.
The premium is subject to a minimum holding period. Check Guichet.lu for current conditions.
Why 2026 is the right time
Diesel prices in Luxembourg are currently above 2 euros per litre. For commuters, that is a significant burden. At the same time, the residual value of older diesel vehicles is dropping faster than petrol or hybrid cars.
The EU combustion engine ban from 2035 sends a clear signal: the future is electric. The closer that date gets, the more pressure on combustion car values.
Meanwhile, affordable EVs are increasingly available. Models like the Dacia Spring, Citroen e-C3, or VW ID.2 make switching feasible for more people.
Getting the timing right
The ideal moment is when your combustion car still has solid residual value and your desired EV is available. Currently, delivery times for most electric models are much shorter than two years ago.
Our advice: start with the valuation. It costs nothing and gives you a number to plan with.
5 practical tips for switching
- Have your combustion car valued BEFORE buying the EV, not after. Know your equity first.
- Compare the dealer trade-in with an independent offer. The difference will surprise you.
- Check wallbox subsidies. Luxembourg and some energy providers offer grants for home charging stations.
- Calculate total cost of ownership: an EV is often 30 to 40 percent cheaper in running costs.
- Test drive the EV thoroughly. Winter range is significantly lower than summer. Make sure it fits your daily routine.
Expert tip
Sell your combustion car at mirkaafenaerenauto.lu and buy your EV within 30 days for maximum financial flexibility.
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