Current regulations
In France, several laws and regulations, including the Civil Code and the Consumer Code strictly govern the termination of electric car leasing contracts.
Laws and rules to know when returning your leased electric car
According to article L. 211-14 of the French Consumer Codethe lessee must comply with certain conditions. On return, the electric vehicle must be in :
- good state of maintenance: carry out the servicing and maintenance operations specified in the rental contract (inspections, technical reviews, etc.),
- good state of repair: return the electric car with all damage repaired during the rental period,
- good general condition: a vehicle undergoes normal wear and tear during use, and damage of this kind (scratches, paintwork, dents) is not your responsibility.
In the event of non-compliance with these requirements, the owner has the right to claim compensation. So, as you can see, it's crucial to carry out regular maintenance, to clean the interior and exterior of your electric vehicle thoroughly, and to make sure that an inventory of fixtures is drawn up before you return it. Note that these regulations are also governed by Article 1722 and Article 1723 of the Civil Code.
What are the key dates and deadlines to remember?
To ensure that the return of your leased electric vehicle goes as smoothly as possible, there are several steps to take:
- respect the return date stipulated in your leasing contract. Your financial institution will usually notify you of this date by post,
- return? buy back? or lease a new model? - think in advance about the choice you'll make at the end of the contract,
- to make an appointment in advance, we recommend that you schedule a meeting with your landlord to agree on the details.
Further information → Vehicle rental: applicable regulations
What termination options are available?
End-of-contract options for electric car leasing include purchasing the vehicle, renewing the lease or returning the electric vehicle. Each of these options has its advantages and disadvantages, tailored to different financial situations.
Renewing your electric car lease: same vehicle or new model?
Renewing your lease with an electric car contract is one of the options available when your LOA (lease with purchase option) expires.
| Keep the same vehicle | Choosing a new model |
|---|---|
|
Benefits |
Benefits |
|
Knowledge of the vehicle, its condition and maintenance
|
Benefit from the latest innovations and technologies |
|
No acquisition costs |
Choose an electric vehicle better suited to your needs and expectations
|
|
Less financial commitment |
|
|
Disadvantages |
Disadvantages |
|
Obsolete technologies and innovations |
Requires a new financial commitment |
|
Less flexibility for changing needs
|
Potentially higher monthly payments
|
So there are no best solutions when it comes to end-of-lease options for electric cars, depending on both your expectations and your needs.
How do you know if buying back your car is a good idea?
Opting to buy back your electric vehicle depends on a number of factors. The satisfaction you get from your current electric vehicle, and the fact that you don't need a new model, make buying back more attractive.
A well-maintained electric car increases the likelihood of a buy-back value. Finally, it's a good idea to keep an eye on the market: buy-back offers vary according to model and supplier, so it's important to compare before deciding.
An electric vehicle buy-back allows you to become the owner of your vehicle and stop paying monthly lease payments. In return, you'll have to pay the buy-back price, and all maintenance and repair costs will be your responsibility.
In short, there's no firm answer to the question of buying back your electric vehicle. Just like the choice of keeping your electric vehicle or choosing a new model, the best decision is the one that matches your needs and expectations.
To help you make the right decision, we recommend that you :
- draw up an inventory of your vehicle needs and desires,
- carry out a full diagnostic to assess the vehicle's condition,
- weigh up buyback offers from various suppliers,
- inform you about the maintenance and repair costs associated with an electric vehicle.
Ask yourself the right questions:
- Am I satisfied with my current vehicle?
- Is my vehicle well preserved?
- Am I prepared to pay for maintenance and repairs?
End of electric car leasing contract: comparing options
Choosing the best option for ending electric car leasing is an important decision, as it can have a significant impact on your budget.
Which electric car leasing termination option is the most cost-effective?
Several criteria can influence the answer to this question. A well-maintained electric vehicle will have a higher trade-in value.
It will also depend on the vehicle's residual value (the amount representing the possible resale price of the car). Restoration costs are another factor to consider. If the vehicle is in poor condition, repair costs will be borne by the lessee.
Generally speaking, a trade-in by the lessor is the least advantageous option. The lessor tends to offer a lower trade-in value than the vehicle's residual value.
Selling the vehicle to an individual or a professional is the most lucrative option, but also the most perilous. The final sale price of the vehicle remains unpredictable.
Finally, buying an electric vehicle is an attractive alternative if it's in good condition and the lessee wants to keep it. He or she can then benefit from an attractive discount.
Here is a more concrete example to give you a better idea of the different end-of-leasing alternatives for a small car electric city carthe Renault Zoë e-Tech :
|
Residual value (after 4 years)
|
20 000 €
|
|
Restoration costs |
2 000 €
|
|
Lessor's takeover offer
|
15 000 € |
|
Selling price of the vehicle to a private individual |
25 000 € |
|
Vehicle purchase price |
18 000 € |
In this case, selling the vehicle to a private individual proves to be the most advantageous option. In this case, the lessee records a capital gain of €5,000.
What are the tax advantages for companies and individuals leasing electric cars?
Whether you're a private individual or a company, leasing electric cars offers attractive tax benefits. Eco-responsible vehicles such as electric cars benefit above all from exemptions and a reduction in TVS (Company Vehicle Tax) for a period of eight quarters.
Private individuals can obtain an ecological bonus when they buy or lease an electric car. It amounts to 27% of the purchase price, up to a maximum of €5,000, provided the price of the vehicle does not exceed €47,000 and the vehicle's weight does not exceed 2.4 tonnes. For households with incomes of €14,089 or less, the ecological bonus can be as much as €7,000.
Electric cars benefit from an exemption from the Taxe sur les Véhicules de Sociétés (TVS) for several years, and an exemption from registration tax in certain regions.
Modest households will be able to lease an electric car for €100 a month from the second half of 2023.
For their part, companies can reduce their taxes by implementing environmentally-friendly practices. They can be subsidized up to €6,000 for the purchase of an electric utility vehicle.
Also read → 2023 tax benefits for electric vehicles
Conclusion
The end of a leasing contract for electric cars presents a variety of possibilities. Whether you choose to purchase the vehicle, renew the lease or return the model, each alternative satisfies specific requirements. It's important to carefully consider your financial situation and needs, and weigh up the pros and cons before deciding.
Ready to take the plunge? Contact our experts Beev if you have any questions. We'll get back to you within the hour!
