HELSINKI, Nov. 28, 2025 — The Finnish government has approved a fixed-term act establishing a car scrappage premium program for 2026–2027, aimed at accelerating the renewal of the national vehicle fleet and enhancing road safety.
The act, which takes effect Jan. 1, 2026, allows private citizens to receive financial support when trading in a passenger car registered in 2015 or earlier for a new model. The scheme is budgeted with a total of $20 million and will run until the end of 2027 or until funds are exhausted.
“The purpose of the premium is to improve road safety by renewing the vehicle fleet,” said Minister of Transport and Communications Lulu Ranne. “The vision for road safety is that no-one is killed or seriously injured in traffic. This requires a wide range of measures, including the scrapping premium.”
The premium offers increased incentives for low- and zero-emission vehicles. A $2,500 premium is available for the purchase of a new zero-emission car powered by electricity or hydrogen. Buyers of a new car powered by other fuel types may receive $2,000, provided the vehicle’s carbon dioxide emissions do not exceed 140 grams per kilometer.
Ranne noted the dual benefits of the program, stating it “boosts new car sales and increases the number of low-emission vehicles.” The higher incentive for zero-emission models supports the goal of increasing the percentage of environmentally friendly vehicles on the roads, aligning with the long-term transport safety goals of the country’s Transport 12 Plan.
Finland’s average vehicle age is relatively high compared to most other European Union countries, making fleet renewal a priority for improving overall traffic safety.
To qualify, the vehicle being scrapped must have been first registered in 2015 or earlier, owned by the applicant for at least a year, and in uninterrupted use on the road for a minimum of 10 months during the year preceding the scrapping. The new car must be purchased for the applicant’s own use, must not have been previously registered, and must be first-registered in Finland.
Applications for the premium will be managed by the Transport and Communications Agency Traficom, starting Jan. 1, 2026. Required documents include the new car order contract and the registration number of the old car. Both the order contract and the scrapping certificate for the old car must be dated between Oct. 1, 2025, and Dec. 31, 2027.
The President of the Republic is expected to formally adopt the act on Nov. 28, 2025.
