Why might my electric vehicle financing application be rejected as an individual?
Unsurprisingly, putting together a leasing application so that it is accepted by a car leasing finance company is not always easy. This is because a number of conditions must be met for your application to be approved. It also works the other way round, as there are a number of items that must not be ticked to stand a chance of having your application approved by the financing organization. We've listed them below:
Depending on your professional status :
- I am an autoentrepreneur
- my income is not high enough
- my income varies from month to month
- my income is not sustainable over time
- I'm a temporary worker
- my income is not stable enough
- my income is not sustainable enough
- I have a fixed-term contract
- my income is not sufficiently sustainable
- I have a permanent contract
- my income is not high enough
- trial period still in effect
Depending on your personal situation :
- the financing organization may consider that you spend too much in relation to your income / you suffer from a poor image
- you are expiating a banking incident, you are listed by the banks as having too much debt
- if you are not French and your residence permit expires before the end of the rental contract
- if you've had payment problems with the financing organization: you're on the credit register.
- if you are under 18 or over 75 by the end of the contract
- You are above the maximum debt limit in France, which is 33%.
- You have too little to live on
Now that we've listed the things that can deny you the option of financing your vehicle, let's take a look at what you can do about it.
How can we resolve the issues that are blocking the file?
To solve your "short-term" problems, which will be resolved within a certain period of time, we recommend that you be patient. Wait until you have fully satisfied the conditions that will enable you to access the financing method. If you think this is a mistake and you are solvent, provide official documents to prove your solvency.
For the more long-term, binding elements of your file, it will be more difficult to override them. But it's not impossible! To get around these "long-term" obstacles, you'll need to find yourself a guarantor, or apply with a flatmate who meets all the conditions, in order to reassure the financing organization. This roommate must be a close relative:
- husband/wife, civil union or married
- parents: father and mother
Why might my application for electric vehicle financing be rejected as a professional?
As far as professionals are concerned, there are even more obstacles to the realization of your electric car financing project.
Your electric vehicle leasing project may be turned down if :
- your business is too new
- your company is in poor financial health
- you generate more financial expenses than profits
- you are not domiciled in France
- if your company is under reorganization
- if the State / Banque de France has lent you money
- if your activity is contrary to the customary use of the vehicle (you may not sublet your vehicle or transport people with it).
- if the president of the company has a less than reassuring financial background (former company bankruptcy, unpaid bank loan, etc.).
- in the event that the company's main decision-maker is not based in France
- when your company is located in a market that is failing or unpromising
Granted, that's a lot of obstacles to avoid, but it's best to be aware of them so you can dodge them as best you can! That's our next point, and we'll be giving you the tips you need to get around these obstacles if they concern you.
How can I get rid of the obstacles blocking my financing application?
There are a number of ways you can get around the elements of your file that could be prejudicial to you. Just like private individuals, you'll need to prove your solvency. Show that you are able to pay all your monthly installments.
To do this, you'll need to bring along a host of official documents to prove your current and long-term financial health.
For companies considered too young :
- It may be useful to provide a provisional or interim balance sheet, validated and verified by an accountant.
If your company has recently received government assistance, you have several options:
- prove that you are solvent by means of any document attesting that you have recurring cash flow,
- wait 6 months to send a provisional/intermediate report,
- wait 1 year and send a new assessment,
It's all about proving that you can invest.
If your decision-maker is not on French territory, you can simply make a power of attorney on behalf of the decision-maker, in the name of another person located in France.
What documents do I need to send when applying to a financing organization for an electric car lease?
Depending on the type of applicant, your file will have to include certain additional or additional elements. However, they will remain broadly similar, with a few exceptions. Here's a detailed breakdown of each file according to your situation.
Documents to be sent by private individuals
Here is the list of documents you need to send to complete your application as an individual:
- RIB
- copy of residence permit if non-EU nationality
- copy of identity card or driver's license
- copy of latest tax assessment
- copy of last pay slip
- copy of proof of address
- copy of cheque
- mileage allowance certificate
Documents to be sent for a sole proprietorship (liberal profession, commercial agent, own-account business)
Here is the list of documents required at the time of your financing application if you are a sole proprietorship:
- RIB
- copy of residence permit if non-EU nationality
- copy of identity card or driver's license
- copy of latest tax assessment
- 2035 declaration or 2042 for self-employed professionals
- copy of cheque
- simplified balance sheet for sole proprietorships
- trades register
Documents to be sent for a legal entity (company, sole proprietorship, administration, association)
Here is the list of documents required at the time of your financing application for a legal entity:
- RIB
- copy of manager's residence permit if non-EU nationality
- latest published financial statements (Cerfa file: assets, liabilities, income statements, appendices 8 and 11)
- K Bis or trade directory for companies
- articles of association for associations
What are the prerequisites for my application if my company has only recently been created?
Since you're a young company, financing organizations see a potential risk in granting you a leasing contract. So you'll need to meet a number of prerequisites to reassure the organization and prove that you're solvent.
You'll need a minimum of €10,000 in fully paid-up share capital (you'll need to provide a bank certificate of deposit). You will be required to pay a security deposit (or an increased first rent, depending on the financing organization you choose) of 15% of the investment value.
You'll need to open a line once the deposit has been cashed (except for cashier's checks). The average investment value is €20,000 for up to three vehicles. Per unit, the maximum investment value is €40,000.
Information about security deposits
DGs (Guarantee Deposits) are to be paid only by bank transfer or cheque to the financing organization (conventional cheques are not accepted), before the order is placed.
DGs must be paid exclusively by the applicant, and not by the contributor, any broker or third party. The transfer of the DG is not recommended in the event of renewal, as it does not cover the same risk and will not be accepted even in exceptional cases.
What are the prerequisites for my application if my average investment value is high?
Additional prerequisites apply:
- You are subject to a veracity check. You will receive a call from the CDC (Caisse des Dépôts) after it has retrieved your details by its own means to verify the veracity of the order. This is to prevent identity theft.
- You will need to provide a certificate from a chartered accountant, stamped by the firm of chartered accountants and signed by the chartered accountant, who will have to give an opinion on the authenticity of the accounts.
- For all requests with an investment value of over 100 k, a meeting between a member of staff and the customer is required at the place of business.
What are the prerequisites for a loan for individuals?
Once again, certain minimum conditions must be met in order to qualify for financing:
- The applicant must be at least 18 years old at the start of the contract and under 75 at the end.
- Your trial period must be over and you must have a permanent contract.
You must have stable accommodation, which must be in your own name, and you must not be staying with a third party. - If the value of the investment, in this case the vehicle, is over €20,000, then your net income must be over €2,000. For a household, net income must be over €3,000.
- For an investment value of less than €20,000 (which would be the case if you wanted to buy a Dacia Spring, for example), the applicant's net income must exceed €1,600, or €2,400 for an entire household.
What is the tolerated debt ratio?
A tolerated debt ratio is often set according to the applicant's monthly income.
It will be different for everyone, but here is an order of magnitude to give you an idea:
- Applicant's monthly income is between €1,600 - €2,500 or household income is between €2,400 - €3,500
- the maximum authorized debt ratio is 33% of total income
- Monthly income of applicant between €2501 - €3800 or household between €3501 - €4800
- the maximum debt ratio is 40% of total income
- Applicant's monthly income is over €3,801 or household income is over €4,801
- the maximum debt ratio is 45% of total income
Now you know everything there is to know about putting together a financing package. If you have any questions on this subject, don't hesitate to send them to us in the comments section! Our experts will get back to you as soon as possible.
