Renewal of social leasing in 2025: what you need to know
Social leasing for electric cars, the French government's flagship scheme, will be renewed in 2025. This measure, which gave more than 50,000 households access to an electric vehicle in 2024, aims to democratise sustainable mobility. Here are the key points to remember:
- The electric LOA (Location avec Option d'Achat) scheme will be maintained, with priority given to the most modest French citizens.
- Eligibility conditions could be adjusted, but reference tax income will remain a key criterion.
- Le electric car leasing will continue to offer attractive monthly payments of around €100 to €150, depending on the model.
- Manufacturers will be encouraged to lower their prices to compensate for the possible reduction in state aid.
With these adjustments, the renewal of social leasing for electric cars in 2025 demonstrates the government's ongoing commitment to the ecological transition in the automotive sector.
Objectives and adjustments to the new system
The renewal of social leasing for electric cars in 2025 builds on the success of 2024, while making some adjustments.
This LOA (Location avec Option d'Achat) scheme aims to make electric vehicles more accessible to low-income households, while supporting the ecological transition of the French car fleet.
The main objectives and adjustments of the new system are as follows:
- Expanding the offer: The government plans to double the number of beneficiaries, from 50,000 to 100,000 electric vehicles available for social leasing.
- Revision of eligibility criteria: The criteria could be refined to target the most modest households more precisely, in particular by focusing on the lowest income deciles.
- Budget optimisation: Given the unexpected success of the scheme, a reduction in the state contribution is envisaged to maintain the financial viability of the programme.
- Incentives for manufacturers: The government is encouraging carmakers to offer electric models at more competitive prices, thereby reducing the overall cost of social leasing.
- Improving accessibility: The aim is to maintain attractive rental rates, ideally around €100 per month, for electric vehicles offered on a leasing basis.
These adjustments are designed to ensure the long-term future of social leasing for electric cars, while maximising its social and environmental impact.
By adapting the terms of social leasing and working closely with manufacturers, the government is seeking to strike a balance between affordability and sustainability.
Eligibility criteria and application process
The LOA scheme for electric vehicles offers a unique opportunity for low-income households to access electric mobility.
To benefit from this advantageous scheme, it is essential to understand the eligibility criteria and the application process.
Eligibility criteria :
- Reference tax income per unit less than €15,400
- Residence in mainland France
- Be of legal age and hold a valid driving licence
- You make more than 8,000 kilometres per year by car as part of your professional activity.
There are several stages in the application process for a social leasing of an electric car:
- Check eligibility on the dedicated platform.
- Creation of a file with the necessary supporting documents
- Choice of electric car model
- Review of the application by the funding body
- Signature of the LOA (Lease with Purchase Option) contract
- Delivery of the vehicle and start of the rental period
It is important to note that social leasing conditions may vary slightly depending on the region and the participating manufacturers.
Make sure you find out all you can about the specifics of your situation before taking out an LOA under this scheme.
Impact on the electric vehicle market
The renewal of social leasing for electric cars should have a significant impact on the French electric vehicle market.
This measure, which aims to make electric cars more accessible to low-income households, could boost sales and accelerate the transition to cleaner mobility.
Social leasing, or LOA (Location avec Option d'Achat) at a preferential rate, enables eligible consumers to lease an electric car on advantageous terms. This scheme could help overcome one of the main obstacles to the adoption of electric vehicles: their high acquisition cost.
The extension of this programme to 2025 should have several positive effects on the market:
- Increased sales: Social leasing of electric cars could stimulate demand, particularly among households that might not previously have considered buying an electric vehicle.
- Diversification of supply: Car manufacturers could be encouraged to develop more affordable models to meet the criteria for social car leasing.
- Accelerating the energy transition: By making electric vehicles more accessible, electric leasing could help to reduce CO2 emissions from the French car fleet.
However, the success of this measure will largely depend on the conditions of social leasing and the ability of manufacturers to offer attractive models at competitive prices.
It will also be crucial to continue developing the infrastructure for recharge to support this potential growth in the electric vehicle fleet.
Summary table
| Aspect | Details |
|---|---|
| Main objective | Democratising access to electric vehicles for low-income households and supporting the ecological transition of the French car fleet. |
| Device | Location avec Option d'Achat (LOA) for electric cars. |
| Target beneficiaries | Low-income households, primarily in the top income deciles. |
| Number of beneficiaries targeted | Increase from 50,000 to 100,000 electric vehicles available for social leasing. |
| Conditions of eligibility |
|
| Monthly payments | Around €100 to €150 per month, with the aim of maintaining rents at around €100. |
| Planned adjustments |
|
| Impact on the market |
|
| Application process |
|
| Issues |
|
Conclusion
The renewal of social leasing for electric cars in 2025 marks an important step in the democratisation of electric mobility in France. Despite a reduction in the budget, the scheme will continue to target the most modest households, with attractive monthly payments of around 100 euros.
This initiative should stimulate sales of electric vehicles, encourage manufacturers to offer more affordable models and accelerate the ecological transition of the French car fleet.
Ultimately, social leasing for electric cars remains a key mechanism for reconciling affordability and environmental objectives in the automotive sector.