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The hidden costs of electric cars in LOA and LLD leasing

Hidden costs electric car leasing

More and more electric cars registered each year in France (44% increase from 2022 to 2023). They are very popular, even if the purchase price of these vehicles is on average higher than their combustion counterparts. Leasing an electric car offers an alternative to buying one, and more and more companies are turning to this option. Find out how much it costs to leasing an electric car and whether leasing is really worth it.

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What's important 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 warranty and the opportunity to renew your vehicle frequently. However, it's crucial to be informed 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, the : 


  • LLD (Location Longue Durée): 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 (Lease with Purchase Option): allows you to lease an electric car with the option of buying the vehicle back from the lessor at the end of the lease. It includes an advance payment, followed by monthly payments at the end of the contract.


Also read → Should you lease or leasing your electric car?

Comprehensive automobile insurance

On average, the French pay around €822 per year for comprehensive car insurance. As a general rule, lessees are required to take out comprehensive insurance. Alternatively, some leasing companies offer what is known as a "full full leasing "in which insurance is already included.

However, the monthly rate is considerably higher. This insurance covers all damage, including damage to third parties theft, firenatural natural disasters and assistance. In the absence of comprehensive insurance, the renter will be liable for all damage caused, including damage to third parties.

In addition to comprehensive insurance, tenants can also take out other types of cover, such as financial loss coveror glass breakage coverage. These coverages may be optional, but they can be useful in protecting the renter 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 don't 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 fees are charges imposed imposed by the lender at the end of a leasing contract.. They apply only 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 charges. They can vary enormously from one 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 can vary from 50 to 500 euros, depending on the lessor. In addition, there may be the cost of re-issuing the vehicle registration documentwhich cost on average the price of one fiscal horse (around €50), depending on the département.

Down payment

The biggest additional cost when renting an electric car is the deposit. In France, you can take advantage of the ecological bonus if the minimum contract period is 24 months. Depending on the amount of the down-payment, this government incentive can cover it in full. The amount of the ecological bonus depends on the type of vehicle and its level of CO2 emissions.

Refill 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 as to which charging points can be used.

Is electric car leasing 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 electric car leasing

Electric car leasing is also interesting for companies wishing to own a fleet of cars. car fleet fleet, as leased models can easily be exchanged for new ones at the end of the contract term.

Leasing offers for electric cars generally only concern new cars or models with only a few kilometers or models with only a few kilometers on the clock, wear-and-tear repairs are unlikely during a two- to four-year lease period, which generally keeps running costs lower than for older combustion-powered vehicles.

Although the deposit is a considerable sum, it can currently be reimbursed in full thanks to the conversion premium. As a general rule, processing takes between 4 and 8 weeks.

Another advantage of electro-mobility is that electric cars improve very quickly. So it makes sense to change vehicles after just a few years. The latest models offer more and morerangecharging 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 car's residual value as long as a mileage leasing contract is in place.

Black spots in electric car leasing

The main disadvantages of leasing electric cars are the costly and comprehensive insurance that is usually required. Some leasing contracts may limit the choice of repair shop. This may be the case, for example, if the leasing contract includes a manufacturer's warranty. 

In addition, the renter is told the maximum number of kilometers he or she is allowed to drive per year. Furthermore, the lessee 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. What's more, they benefit from attractive tax advantages. 


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 Lease to Own (LTO) and Long-Term Rental (LTL):

Benefits Disadvantages
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
Be 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


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 made possible at a much lower cost than buying one.

Adrien-Maxime MENSAH
Adrien-Maxime MENSAH

If you believe in the electrification of vehicles, you're already halfway towards your ecological transition. That's why I'm offering you some content on the electric vehicle environment.

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