What is an LOA?
Whether you are a private individual or a company, you can rent an electric vehicle with a LOA (Lease with Purchase Option). By choosing this option, you agree to pay a monthly installment 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're 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 take out a LOAis available to everyone, whether you're a private individual or a professional. However, depending on your situation, the terms and conditions will differ:
- If you are an individual :
To lease an electric vehicle as a private individual, you must be over 18 years of age and hold a valid driving license. To avoid a contract that exceeds your budget, make sure you know your debt ratio, i.e. your ability to repay the amount you've borrowed without breaching your "reste à vivre".
To take things a step further, we have just the article to help you better understand the debt ratio and how to calculate it.
- If you are a company :
As a company, LOA leasing of one or more vehicles is available for any size of company with a vehicle fleet (VSE, SME).
How much does LOA leasing cost?
As with LLD and LMDthe price varies according to several criteria:
- the price of the vehicle
- the duration of the contract: you can choose the rental period, from 2 to 5 years.
- mileage determined by the owner
- services, such as maintenance and 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'll know the rent you'll have to pay.
To find out more, consult our experts Beev. They'll help you determine your exact monthly payments.
What documents do I need to take out an LOA?
When you apply for an LOA, you'll be asked to provide certain documents. Why? Because these documents will help you build up a secure file, and for reasons of financial security. This ensures that you'll be able to pay the rent every month, right up to the end of the contract.
Depending on your profile, the documents will be different:
- For individuals, you will need :
- Bank details
- Last tax assessment
- Your valid ID (a copy of both sides)
- Proof of address less than 3 months old
- Your 3 pay slips
- 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 driver's license
How do I lease an electric car?
If you want to rent 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 at 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, you benefit from a number of advantages for both private individuals and professionals, including :
- Because LOA is a lease, you only pay for the use of the vehicle, not for its ownership, as you might 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 own it, or return it and choose another car.
- Speaking of choosing another electric car, with a LOA you also have the option of changing vehicles regularly. This means you'll be offered the latest vehicles, with the latest technological advances.
- With a LOA, you don't have to worry about reselling the vehicle. The owner takes care of the resale.
- Renting 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. This way, you can see whether or not it suits your needs.
Grants for leasing electric cars under the LOA scheme
You no doubt know that financial assistance is available for the purchase of an electric vehicle. For an electric car lease, you can also benefit from state aid, in the case of a LOA:
- the ecological bonus,
- conversion bonus
- the zero-rate loan, which will come into effect on January 1, 2023.
Ecological bonus
The bonus écologique is one of the government's subsidies enabling French people to buy or lease an electric car, both for private individuals and for businesses wishing to electrify their fleet.
While the ecological bonus is currently €6,000 at a rate of 27%, this will be reduced by €1,000 from July 1, 2022, regardless of the value of the electric vehicle or van purchased or leased.
Conversion bonus
In addition to the ecological bonus, you (private individual or professional) can have access to the conversion bonus. The principle is simple: in exchange for your old combustion-powered vehicle, you can buy or lease 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 bonus depends on several factors:
- The category of vehicle purchased
- Your reference tax income per unit (based on the tax assessment for the year preceding the purchase of the new electric car).
- Mileage traveled 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 January 2022 scales.
Good to know: if you want to buy or lease an electric vehicle, you can combine the ecological bonus with the conversion premium.
Zero interest loans from January 1, 2023
According to the Official Journal published on June 24, 2022the zero-rate loan is a loan granted by The State to help the French finance the purchase of an electric or hybrid vehicle. This loan is aimed at residents and micro-businesses (with fewer than 10 employees) in ZFE-m (Zones à Faibles Émissions mobilité) areas with a maximum tax income of €14,000. Beneficiaries will only be able to take advantage of this loan from January 1, 2023, over a 2-year period, when the Minister of the Economy and the Minister of Transport will assess the effectiveness or otherwise of this scheme.
The scheme is designed to encourage the French to switch to electric mobility, and also to reduce CO2 emissions. The latter is one of the main causes of death in France, according to the Santé publique France.
The loan is €30,000 for a car costing up to €45,000, or €60,000 for a van. The loan is repayable over 7 years.
Can I cancel an LOA lease?
If you have a LOA leasing contract, you can cancel it. However, you will have to take into account certain indemnities, in particular the IRA (Indemnité de Restitution Anticipée). This indemnity is payable in one lump sum.
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 the contract.
To avoid paying these indemnities, there are more advantageous alternatives available to you:
- Buy the vehicle before the contract expires: In this case, the option to purchase the car is brought forward. In this way, you become the direct owner of the vehicle.
- Return the vehicle to the financing company: If you choose this option, you'll have to pay the remaining monthly installments. In this way, you pay the full amount of the lease without having used the vehicle during the entire term 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.
- Transferring your lease: This solution is not yet well known in France, but it offers a financial advantage, since 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 make any monthly payments until the end of the contract.
LOA, LMD or LLD: which to choose?
The choice of leasing depends 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 per year, it will be more advantageous for you to lease an electric car under a LLD (long-term leasing), because maintenance is included in the rental price.
- If you usually make short journeys, the most suitable leasing option would be a lease with purchase option. Also, a car that has been driven little will be much easier to resell.
- If you need a back-up solution for the short or medium term, you can use LMD (medium-term rental).
In fact, with Beev, you can apply for a LMD to lease an electric vehicle. From 1 to 24 months, the contract is renewable and without commitment. What's more, we offer a range of services to reduce your costs, such as :
- Maintenance
- Assistance
- Pneumatic service
- Comprehensive multi-driver insurance
- Damage department: €1,000
- Icebreaker service: €100
In conclusion
To conclude, we can say that the purchase of a vehicle implies the assumption of all vehicle-related costs, such as maintenance and depreciation. You'll be the owner of your electric car.
On the other hand, a LOA lease could be a good solution if you want to test drive 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.
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 with your project. Our advisors will help you from A to Z.
