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What is an LOA?
Whether you are a private individual or a company, you can hire a electric vehicle LOA (Lease with Purchase Option). By choosing this option, you agree to pay a monthly instalment to the owner of the vehicle, for a fixed rental period of between 2 and 5 years. At the end of the contract, if you are satisfied with the vehicle, you can either buy it outright or return it to the owner.
Who can benefit from a leased electric car?
To subscribe to a LOAWhether you are a private individual or a professional, everyone can benefit. However, the terms and conditions will vary depending on the situation:
- If you are an individual :
To hire an electric vehicle as a private individual, you need to be over 18 and hold a driving licence. To avoid a contract that exceeds your budget, make sure you know your level of indebtedness, i.e. your ability to repay the amount you have borrowed without breaching your "living allowance".
To take things a step further, we have just the article you need to know more about understanding the debt ratio and calculate it.
- If you are a company :
As a business, leasing one or more vehicles is accessible to all companies, whatever their size, with a vehicle fleet (VSES, SMES).
How much does leasing cost?
As with LLD and LMDThe price varies according to a number of criteria:
- the price of the vehicle
- the length of the contract: you can choose the length of the lease, from 2 to 5 years.
- the mileage determined by the owner
- services, such as maintenance or assistance.
- the vehicle's residual value: this is a value given at the end of the electric car's useful life
Once all these factors have been taken into account, you will know the rent for your particular situation.
To find out more, consult our experts Beev. They'll help you work out your exact monthly repayments.
What documents do I need to take out an LOA?
When you apply for an LOA, you will be asked to provide certain documents. Why do you do this? Because these documents enable us to build up a secure file and for financial security reasons. This ensures that you will be able to pay the rent each month until the end of the contract.
Depending on your profile, the documents will be different:
- For individuals, you will need :
- Bank details
- The latest tax assessment
- Your valid identity document (a copy of both sides)
- Proof of address less than 3 months old
- Your 3 payslips
- Your driving licence
- For companies:
- Your bank details
- The identity and contact details of your company's chartered accountant
- An extract from your company's kbis less than 2 years old (this is the only document that justifies the legal existence of your company).
- A copy of the CEO's valid identity document
- A copy of your driving licence
How do I lease an electric car?
To hire an electric car, you can call on our Beev team to make your project a reality. To do so, visit our website Beev and start by choosing the vehicle you want. Once you've clicked on "Get my offer", all you have to do is fill in the form and send it off. An expert will then contact you to start your rental project.
Otherwise, don't hesitate to contact us directly on 01.76.40.35.38. Our experts will be with you every step of the way.
What are the advantages of leasing a car?
With a LOA, there are many advantages for both private individuals and professionals, including :
- As the LOA is a lease, you only pay for the use of the vehicle and not for its ownership, as would be the case if you bought the car outright.
- At the end of the lease, you can choose what to do with the car: either buy it outright and become its owner, or return it and choose another car.
- Talking of choosing another electric car, with a lease you also have the option of changing vehicles regularly. This means that you'll be offered the latest vehicles, with the latest technological advances.
- With a LOA, you no longer need to worry about reselling the vehicle. It's the owner who takes care of the resale.
- Hiring an electric vehicle over a given period is an opportunity for you to test drive an electric car, especially if it's your first time using one. So you can see whether or not it suits your needs.
Support for leasing an electric car
You'll no doubt be aware that when you buy an electric vehicle, you'll be entitled to financial aid are available to you. When you lease an electric car, you can also take advantage of government grants, particularly in the case of an LOA:
- the ecological bonus,
- the conversion premium
- the zero-rate loan, which will apply from 1 January 2023.
Ecological bonus
Le environmental bonus is a government subsidy that enables French people to buy or lease an electric car, whether they are private individuals or professionals looking to electrify their business. vehicle fleet.
While the ecological bonus is currently €6,000 at a rate of 27 %, this will be reduced by €1,000 from 1 July 2022, regardless of the value of the electric vehicle or van purchased or leased.
Conversion premium
In addition to the ecological bonus, you (private individual or professional) can have access to the conversion premium. The principle is simple: in exchange for your old thermal vehicleyou can buy or rent a clean vehicle. Your old vehicle can be a van or a car, weighing no more than 3.5 tonnes and registered before 2011 for a diesel vehicle and before 2006 for a petrol vehicle.
The amount of the premium depends on a number of factors:
- The category of vehicle purchased
- Your reference tax income per unit (this takes into account the tax notice for the year preceding the purchase of the new electric car).
- Mileage travelled from your home to your place of work
To find out the exact amount, you can use the conversion premium simulator or refer to the scales dating from January 2022.
Good to know: if you want to buy or lease an electric vehicle, you can combine the ecological bonus with the conversion premium.
Zero rate loan from 1 January 2023
According to the Official Journal published on 24 June 2022the zero-rate loan is a loan granted by the French government to help people finance the purchase of an electric or hybrid vehicle. The loan is aimed at residents and micro-businesses (with fewer than 10 employees) in ZFE-m (Low Emission Mobility Zones) with a maximum tax income of €14,000. Beneficiaries will only be able to take advantage of this loan from 1 January 2023, over a period of 2 years, when the Minister for the Economy and the Minister for Transport will assess whether or not the scheme is effective.
The scheme will be introduced to encourage the French to switch to electric mobility and to reduce CO2 emissions. The latter is one of the main causes of death in France, according to the European Commission. Santé publique France.
In terms of amount, the loan is €30,000 for a car costing up to €45,000, or €60,000 for a van. This loan is repayable over 7 years.
Is it possible to cancel an LOA lease?
If you have a LOA lease, you can cancel it. However, you will have to pay compensation, in particular the IRA (Indemnité de Restitution Anticipée). This indemnity is payable in a single instalment.
What's more, as soon as you sign the contract, you have 14 days to cancel it with the lending institution. To do this, you can use this model document for withdrawing from a contract.
To avoid paying this compensation, there are more advantageous alternatives available to you:
- Buy the vehicle before the contract expires: In this case, the option to purchase the car will be brought forward. In this way, you become the direct owner of the vehicle.
- Return the vehicle to the financing organisation: if you choose this alternative, you will have to pay the remainder of the monthly instalments. In this way, you pay the full rent without having used the vehicle for the entire duration of the contract.
- Putting the vehicle up for sale : With this alternative, you can exercise the purchase option, buy the vehicle outright and sell it to a second-hand professional or private individual.
- Transfer your lease : This solution is not yet known in France, but it offers a financial advantage, because the principle is to transfer the current leasing contract to a third party. The third party then becomes the lessee of the vehicle. This solution gives you peace of mind in the knowledge that you won't have to pay any monthly instalments until the end of the contract.
LOA, LMD or LLD: what should you choose?
The choice of lease will depend on your profile and your needs. Here are some tips to help you choose between the 3 leasing options:
- If you drive more than 10,000 km a year, it will be more advantageous for you to lease an electric car by LLD (long-term leasing), because maintenance is included in the rent.
- If you usually make short journeys, leasing with a purchase option would be the most suitable option. Also, a car that has been driven little will be much easier to resell.
- If you need a back-up solution in the short or medium term, you can use LMD (Medium-term rental).
In fact, with Beev, you can apply for a LMD to hire an electric vehicle. The contract is renewable for between 1 and 24 months, with no commitment. What's more, we offer a range of services to help reduce your costs:
- Maintenance
- Assistance
- Pneumatic service
- Comprehensive multi-driver insurance
- Damage department: €1,000
- Ice-breaker service: €100
In conclusion
In conclusion, buying a vehicle means taking responsibility for all the costs associated with it, such as maintenance and depreciation. So you own your electric car.
On the other hand, leasing could be a good solution if you want to try out an electric vehicle, while taking advantage of the financial benefits and reducing your costs. What's more, by leasing a vehicle over a period of time, you'll be able to change vehicles regularly, while benefiting from the latest technological advances, with a plan to buy at the end of the contract.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
Read our article about :
If you'd like to take advantage of this offer, or if you're not sure which leasing option to choose, don't hesitate to contact us to tell us about your project. Our advisers will help you from A to Z.
