€25,000 bonus for giving up your car and handing in your driving licence

000 euros.

At first glance, it sounds like a mad publicity stunt: anyone who gives up their car for good and hands in their driving licence would be rewarded with a large sum of money. But behind it sits a genuine pilot scheme, designed to cut traffic congestion and shift people out of cars and into buses, trains and onto bicycles.

What lies behind the €25,000 bonus

The proposal is uncompromising: rather than steering motorists mainly through fines and driving bans, the programme relies on an incentive that feels almost absurd. Anyone who permanently surrenders their driving licence and commits to no longer using a privately owned car could receive up to €25,000, depending on how the support is structured.

In most of the models being discussed, the money would not arrive as a single cheque. Instead, it would usually be paid out over several years, to stop people giving up briefly and then slipping back into old habits.

"This concept turns things on their head: instead of a penalty for bad behaviour, you get money for giving up the car entirely."

From a political perspective, the expectation is that the spending would pay for itself over time - through fewer traffic jams, lower air pollution, fewer crashes, and reduced costs for road maintenance and the health system.

How the model is meant to work

At their core, the proposed schemes follow the same blueprint: the state pays if citizens voluntarily stop using their car and surrender their driving licence in a symbolic or legal sense. In return, they receive a mobility package.

• Long-term commitment to stop using a privately owned car
• Return or invalidation of the driving licence
• Cash bonus ranging from several thousand euros up to €25,000
• Vouchers for bus, rail, car sharing or a bicycle subscription
• In some cases, grants for e-bikes or cargo bikes

In certain versions, the licence would not be taken away for life, but for a very long period - for example, ten or fifteen years. Anyone who registers a car again during that time or retakes a driving test would either have to repay the money or lose the remaining instalments.

Who would even qualify for an offer like this?

These projects are primarily aimed at groups for whom switching away from the car seems realistic. Typical target audiences include people in large cities who are already well served by public transport.

Examples being floated include:

Group	Underlying idea
City residents	Good public transport links, plenty of alternatives to the car
Pensioners	Fewer work-related journeys, rising safety risk with age
Young adults	Quitting early can shape long-term behaviour
High-mileage drivers with a large CO₂ footprint	Big climate impact if they switch

In rural areas with poor bus or rail services, the model would be much harder to implement. There, the car often remains essential, no matter how generous the bonus might be.

Why a country would resort to such drastic measures

Pressure on transport policy is increasing. Climate targets, overcrowded cities, noise and high collision figures are forcing governments to act. Traditional tools such as 30 km/h zones, congestion charges or higher fuel taxes quickly run into opposition.

By offering a cash reward, policymakers want to test a different approach: people who opt out voluntarily are rewarded rather than punished. The psychology is different - and it fits an era in which many are reassessing how they get around.

"€25,000 is equivalent to several years of fixed costs linked to a car - from insurance and fuel through to maintenance."

Even today, the true cost of a mid-size car can easily come to €400 to €800 per month once you add up purchase costs, taxes, insurance, servicing and fuel. Over five to ten years, the totals can reach figures surprisingly close to the bonuses now being discussed.

Does it pay off for the state?

Supporters argue that it does. Every person who gives up owning a car for the long term reduces public costs over time. Less wear on roads, reduced need for parking, and lower noise and air pollution all translate into lower spending on infrastructure and healthcare.

At the same time, schemes like this create greater certainty for planning: if enough people commit to leaving the car behind, expanding rail, tram and bus routes becomes far more worthwhile.

Opportunities and risks for participants

Handing in your driving licence in exchange for money is a major life choice. The appeal of €25,000 should not distract from the practical consequences.

• No spontaneous weekend trip by car
• More planning for travel and day-to-day journeys
• Greater dependence on timetables and connections
• More organisation around children, shopping, and caring for relatives

On the other hand, the change can feel liberating. Without a car, there is no need to worry about the MOT, repairs, tyre changes or insurance. Many people only then realise how much money - and stress - a private car actually consumes.

The stronger the alternatives, the more attractive the bonus becomes. In cities with frequent public transport and a solid car-sharing network, going without a car looks far more realistic than it does in the countryside.

What a programme like this could do to society

Projects of this kind can trigger debates that go well beyond individual motorists. A country that so openly tries to lure citizens away from cars is effectively questioning its existing model of mobility.

New questions suddenly come to the fore: who does public space belong to? How much room do cars really need? And how fair is it if wealthy people can easily afford a car while others have to scrape by on buses and trains?

If the state pays large bonuses, this fairness issue shifts as well. People on lower incomes would suddenly have a strong incentive to give up the car and relieve pressure on their household finances.

What this could mean for motorists in Germany

In Germany, a bonus this large is currently more of a future prospect, but debate is likely to pick up. Some cities are already experimenting with smaller incentives: free public transport tickets for drivers, subsidies for commuter tickets, or discounts for switching to cycling.

Lessons can be drawn from other countries’ experience. A cash payment alone is not enough. Only a complete package - reliable public transport, appealing cycle routes, car sharing, and flexible working models - makes giving up the car feasible.

Anyone who wants to rely less on their car can already try out how far they can get without it: commuting by train, doing shopping by cargo bike, and taking a long-distance train for a weekend away instead of driving. It quickly becomes clear whether a hypothetical €25,000 bonus would be realistic in everyday life - or whether a driving licence simply remains indispensable.

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