Monday to Friday
9am - 12.30pm - 2pm - 7pm
Discover our new must-have guide :
What are the most important points when leasing an electric car?
Leasing is a financial option that allows you to rent an electric car for a specified period, often from 2 to 5 years. It offers a number of benefits, such as a stable monthly payment, a guarantee and the opportunity to renew your vehicle frequently. However, it's crucial to find out about the key elements before committing yourself.
Types of electric car leasing
To begin with, it is important to know that there are two types of electric car leasing: :
- LLD (Long-term rental): this is a fixed-term lease with no purchase option at the end of the contract. Monthly payments are often lower than with a LOA, and at the end of the contract the vehicle is returned to the lender.
- LOA (Hire with Purchase Option): this allows you to hire an electric car with the option of buying the vehicle back from the hire company at the end of the hire contract. It includes an advance payment followed by monthly payments at the end of the contract.
Also read → Should you lease or long-term lease your electric car?
Comprehensive motor insurance
On average, the French pay around €822 per year for their comprehensive motor insurance. As a general rule, lessees are required to take out comprehensive insurance. Alternatively, some leasing providers offer what is known as a "comprehensive" policy. full leasing "Insurance is already included.
However, the monthly rate is considerably higher. This insurance covers all damage, including damages caused to third parties, the flight, the firethe natural disasters and assistance. In the absence of comprehensive insurance, the hirer will be liable for all damage caused, including damage to third parties.
In addition to comprehensive insurance, tenants can also take out other cover, such as financial loss guaranteeThese coverages may be optional, but they can be useful in protecting the hirer in the event of a claim. These guarantees may be optional, but they can be useful in protecting the hirer in the event of a claim.
Also read → Electric car insurance: everything you need to know
What costs should I expect when leasing an electric car?
Electric car leasing companies always advertise low monthly rates. However, they often do not directly explain all the additional costs that arise when leasing an electric vehicle. Different amounts can be added to the monthly charges.
Disposal costs
Disposal costs are charges imposed by the lender at the end of a leasing contract. They only apply if the lessee decides to return the vehicle. They include administrative and processing costs (preparation of the vehicle for resale, vehicle inspection, reconditioning) and other administrative costs. They can vary enormously from one service provider to another.
Transfer fees
If the vehicle is not collected from the manufacturer's factory, there are often additional charges for transferring the vehicle. These costs can vary between €50 and €500, depending on the lessor. In addition, there may be the cost of reissuing the vehicle. vehicle registration documentwhich cost on average the price of a tax horse (approximately €50) depending on the département.
The deposit
The biggest additional cost when hiring an electric car is the deposit. In France, you can take advantage of the environmental bonus if the minimum term of the contract is 24 months. Depending on the amount of the deposit, this government incentive may cover it in full. The amount of the environmental bonus depends on the type of vehicle and its level of CO2 emissions.
Top-up charges
The lessee bears the cost of recharging the electric car, which is of course linked to the current price of electricity. However, there is generally no indication of which charging points can be used.
Is leasing an electric car the right plan?
Given that the average purchase costs of electric cars are higher than those of internal combustion vehicles, leasing seems to be a good option for many companies.
The added value of leasing an electric car
Electric car leasing is also an attractive option for companies wishing to own an electric car. vehicle fleet new, because leased models can easily be exchanged for new ones at the end of the contract period.
Electric car leasing offers only concern generally only new cars or models with only a few kilometres, wear-and-tear repairs are unlikely during a two- to four-year lease period, which generally keeps running costs lower than for older combustion vehicles.
Although the deposit is a substantial sum, it can now be reimbursed in full thanks to the conversion premium. As a general rule, it takes between 4 and 8 weeks to process an application.
Another advantage of electro-mobility is that electric cars improve very quickly. So it makes sense to change your vehicle after just a few years. The latest models offer more and moreautonomyThe result is more energy, better charging times and more power. Even electric cars that are only a few years old are already well behind the latest models.
What's more, lessees don't have to worry about the residual value of the car as long as a mileage leasing contract is in place.
The pitfalls of electric car leasing
The main disadvantages of leasing electric cars are the costly and comprehensive insurance that is generally required. Some leasing contracts may restrict the choice of repair workshop. This may be the case, for example, if the leasing contract includes a manufacturer's warranty.
In addition, the hirer is told the maximum number of kilometres he or she is allowed to drive per year. In addition, the hirer may incur additional hidden costs in the form of disposal charges.
Electric cars are particularly economical to run, and in many towns and cities they even benefit from discounted or free parking spaces. They also benefit from attractive tax breaks.
Also read → Tax benefits for electric cars in 2023
Summary of advantages and disadvantages
Finally, here is a summary of the opportunities and limitations of Leasing with an Option to Buy (LOA) and Long-Term Leasing (LLD):
| Avantages | Inconvénients |
|---|---|
Possibility of benefiting from the ecological bonus and the conversion premium | The vehicle is owned by the leasing company |
Monthly payments instead of a high purchase price | Mileage limit |
Being able to change vehicles regularly | Inability to terminate the contract early |
Maintenance and repair costs included | Restoration costs at the end of the contract can be high |
Conclusion
Leasing an electric car is therefore a good way of being flexible and always driving new models, allowing you to experiment with electric mobility. This is possible at a much lower cost than buying a car.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
Read our article about :
