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Leasing an electric car: what is it?
The electric car leasing for professionals offers companies an exceptional opportunity to reduce their carbon footprint while optimizing their operating costs.
Long-term leasing (LLD) has become the preferred method of financing for companies. According to the Baromètre des Flottes et de la Mobilité 2023 (Fleet and Mobility Barometer 2023), long-term leasing is clearly the preferred method of financing for companies in France. More than 50% of companies used long-term leasing (LLD) in 2023making it the preferred method of financing in the business world.
Unlike buying a car, leasing enables companies to benefit from a fleet of state-of-the-art electric cars without tying up large amounts of capital. What's more, with rapid technological advances in the electric cars, lleasing offers the flexibility to update the fleet on a regular basis, ensuring that your company remains at the forefront of innovation.
By investing in electric car leasingyou're not only contributing to a more sustainable future, but also saving money in the long term, while offering your employees modern, environmentally-friendly cars.
Make the right choice for your company by opting for electric car leasing, a decision that combines efficiency, savings and environmental responsibility.
What is long-term leasing?
The long-term leasingor long-term leasing, in other words, is a financing solution that enables you to lease an electric car for a period of 1 to 5 years. The lessee pays a fixed rental fee that includes maintenance, assistance and other services. At the end of the contract, the lessee returns the vehicle to the the leasing company.
Advantages of leasing :
- Better budget management: fixed rents keep expenses under control.
- Flexibility: the possibility of changing vehicles on a regular basis.
- Adoption by professionals: long-term leasing is a solution that companies are familiar with.
And from an accounting point of view:
- Leasing allows you to deduct rental payments from your taxable income. Rentals paid to the lessor are considered as operating expenses, reducing the company's taxable income.
- It also means that no capital is tied up. The company doesn't have to invest in the purchase of a vehicle, which frees up cash.
There is also risk reduction, in which the company is not responsible for vehicle maintenance and repair, thereby reducing the risks associated with vehicle ownership..
What is a lease with option to purchase (LOA)?
The rental with purchase option or LOA, offers the possibility of leasing an electric car with the prospect of buying it at the end of the contract, making it an attractive financing solution.
The tenant pays a monthly rent for a specified period, which can range from 2 to 5 years. At the end of the contract, the tenant can :
- Buy the vehicle at the contract price.
- Return the vehicle to the rental company.
- Terminate contract early, for a fee.
Advantages of LOA
LOA offers a number of advantages, including
- The possibility of changing vehicles on a regular basis, depending on the needs of the company or individual.
- At the end of the contract, the lessee has the option of buying back the car at a predetermined price.
- The right to withdraw up to 14 days after signing the contract.
Advice
It's important to compare LOA offers before taking out a contract. You should also check that the vehicle is well maintained and meets the needs of the company or individual.
What is medium-term rental (MTL)?
As its name suggests, LMD (medium-term rental) is a solution for leasing electric vehicles for from 1 to 24 months.
For longer periods, we recommend long-term leasing (LLD)which runs from 24 to 60 months. For periods of less than 1 month, you should take out a short-term rental (LCD) CONTRACT.
Let's summarize what was said above:
| Criteria | LLD | LOA | LMD |
|---|---|---|---|
|
Duration
|
24 to 60 months |
24 to 72 months |
1 to 24 months |
|
Mileage |
Flat-rate or unlimited |
Flat-rate or unlimited |
Flat-rate or unlimited |
|
Price |
Cheaper than buying |
More expensive than LLD |
More expensive than LLD |
|
Benefits |
Flexibility, freedom of choice |
Flexibility, purchasing options |
Adaptability to specific needs |
Electric car leasing: utility car or electric passenger car?
An electric electric utility car is a vehicle designed for transporting goods. It generally has more cargo space than an electric passenger car. It's best suited to businesses that need a lot of cargo space.
For the electric passenger car, is a vehicle designed to carry people. It is generally smaller and more comfortable than an electric utility vehicle.
The following table summarizes the main differences between the two types of vehicle:
| Criteria | Electric utility car | Electric passenger car |
|---|---|---|
|
Purpose
|
Freight transport |
Transporting people |
|
Cargo space |
Important |
Less important |
|
Cost |
Higher |
Lower |
What kind of financial assistance is available for electric vehicles?
The use of vehicles is essential for businesses, offering significant advantages in terms of flexibility and mobility. Vehicle operating costs can represent a major financial challenge for many companies. This is where leasing comes in as an attractive financing solution.
As a financing method, leasing enables companies to benefit from a number of key financial incentives. These include the ecological bonusa financial incentive designed to encourage the acquisition of clean, environmentally-friendly vehicles.
This measure enables companies to benefit from financial aid while contributing to ecological initiatives. In addition, leasing can also offer financial assistance such as the conversion premiuma financial incentive designed to encourage the replacement of older vehicles with newer, more environmentally-friendly models..
Ecological bonus: who can benefit?
The ecological bonus is a financial aid offered by the French government to facilitate the purchase of low-emission vehicles. This incentive is aimed at private individuals and companies who purchase or lease electric, plug-in hybrid or hydrogen-powered vehicles.
The amount of this subsidy varies according to the type of vehicle and its CO2 emissions. Vehicles with the lowest emissions benefit from a higher premium.
To qualify for the ecological bonus in 2023, certain conditions must be met:
- The vehicle must be electric, hydrogen-powered or a combination of the two.
- The acquisition cost of the vehicle must not exceed €47,000.
- You must purchase or lease it for a minimum period of 2 years.
- The vehicle may not be resold in the year of purchase, and must have been driven at least 6,000 km.
- Vehicle weight must not exceed 2.4 tonnes, or 3.5 tonnes for category M2.
Example:
Let's take the example of a company looking to purchase a new electric car costing 40,000 euros. Thanks to the ecological bonus of 3,000 eurosthe acquisition cost of the car is reduced to 37,000 euros.
Conversion bonus: how to benefit?
The conversion premium is a major financial incentive for companies wishing to buy or lease a new or used electric car. It significantly reduces the cost of acquiring a clean car, which encourages its adoption.
The amount of the is set at 27% of the acquisition cost, including taxup to a maximum of 6,000 euros for individuals and 3,000 euros for professionals.
The list of vehicles eligible for the conversion premium, in exchange for scrapping :
For private customers:
Passenger car :
- New or used vehicle classified Crit'Air 1
- Range under 50 km
- CO2 emissions less than or equal to 127 g/km (137 g/km if the vehicle is more than 6 months old)
- Price less than or equal to €50,000
| Type of vehicle | Criteria | Very low-income households and "heavy-duty" households | Very low-income households (reference tax income per unit less than or equal to €13,489) | Other households |
|---|---|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used |
|||
|
|
Range over 50 km |
5,000 (up to 80% of acquisition cost) |
2500 € |
2500 € |
|
|
Price less than or equal to €60,000 |
|
|
|
|
Private car |
|
|
|
|
|
|
New or used vehicle classified Crit'Air 1 |
|
|
|
|
|
Range under 50 km |
3,000 (up to 80% of acquisition cost) |
1500 € |
0 |
|
|
CO2 emissions less than or equal to 127 g/km if the vehicle is more than 6 months old) |
|
|
|
|
|
Price less than or equal to €50,000 |
|
|
|
Light commercial vehicles :
- New or used vehicle classified Crit'Air 1
- Range under 50 km
- CO2 emissions less than or equal to 127 g/km (137 g/km if the vehicle is more than 6 months old)
- Price less than or equal to €50,000
| Type of vehicle | Criteria | Very low-income households and "heavy-duty" households | Very low-income households (reference tax income per unit less than or equal to €13,489) | Other households | ||
|---|---|---|---|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used |
40% of the acquisition cost, up to a maximum of :
|
||||
|
|
Range over 50 km |
5,000 for class 1 vehicles (reference mass less than or equal to 1,305 kg). |
||||
|
|
Price less than or equal to €60,000 |
7,000 for class 2 vehicles (between 1,306 and 1,760 kg) |
|
|
||
|
Light commercial vehicle |
|
9,000 for class 3 vehicles (over 1,760 kg) |
|
|
|
|
|
|
New or used vehicle classified Crit'Air 1 |
|
|
|
||
|
|
Range under 50 km |
3,000 (up to 80% of acquisition cost) |
1500 € |
0 |
||
|
|
CO2 emissions less than or equal to 127 g/km if the vehicle is more than 6 months old) |
|
|
|
||
|
|
Price less than or equal to €50,000 |
|
|
|
For professionals :
Passenger car :
- New or used electric or plug-in hybrid vehicle
- Range over 50 km
- Price less than or equal to €60,000
| Type of vehicle | Criteria | Amount of assistance |
|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used
|
|
|
Private car |
Range over 50 km |
2500 € |
|
|
Price less than or equal to €60,000 |
Light commercial vehicles :
- New or used electric or plug-in hybrid vehicle
- Range over 50 km
| Type of vehicle | Criteria | Amount of assistance |
|---|---|---|
|
|
Passenger car
or rechargeable hybrid
new or used
|
40% of the acquisition cost, up to a maximum of : |
|
Light commercial vehicle |
|
5,000 for class 1 vehicles (reference mass less than or equal to 1,305 kg) |
|
|
|
7,000 for class 2 vehicles (between 1,306 and 1,760 kg) |
|
|
Range over 50 km |
9,000 for class 3 vehicles (over 1,760 kg) |
Electric vehicles must have a CO2 content ≤ 20 g/km, and plug-in hybrids a CO2 content ≤ 50 g/km.
For example, a a company buying a new electric van worth €60,000 could benefit from an ecological bonus of €3,000. If the company has a diesel commercial vehicle over 10 years old, it can also benefit from a conversion bonus of €7,000.
In total, the company can therefore benefit from financial assistance of €10,000, reducing the vehicle purchase cost to €50,000.
Reasons to lease an electric car
The long-term savings with electric car leasing are mainly due to the lower cost of electricity compared with fuel. According to a study carried out by UFC-Que Choisir in June 2021, a new electric car could save up to €1,750 over 4 yearscompared with a gasoline-powered car.
What's more, electric vehicles benefit from a number of tax advantages, such as exemption from TVS. These advantages can also help reduce the overall cost of leasing.
No maintenance costs when leasing an electric car
Electric cars offer a significant economic advantage in terms of maintenance costs. The longer the vehicle is owned, the greater the cost difference.
To take advantage of these savings, it's important to choose a leasing contract that includes maintenance. Most electric car leasing contracts include servicing and maintenance for the duration of the contract.
It's also important to compare leasing offers from several dealers to find the most advantageous contract.
Find out more : Electric vehicle leasing, advantages for small and medium-sized businesses
Leasing an electric car: no breakdown charges
In terms of breakdown costselectric cars generally have fewer moving parts than traditional gasoline-powered cars, which reduces the risk of breakdown.
| Car type | Number of moving parts |
|---|---|
|
Electric car |
20 |
|
Traditional gasoline-powered car |
More than 2000 |
Source: Difference between the number of parts in electric and traditional gasoline-powered cars
Electric cars have no internal combustion engine, which is a frequent source of breakdowns.
Electric cars are also equipped with an on-board diagnostic system to detect potential problems before they turn into breakdowns.
Electric car can be changed regularly
One of the major advantages of leasing an electric car is the possibility of possibility of changing cars regularly at the end of each leasing contract. Unlike buying, where you own the car and have to worry about resale or exchange, leasing gives you considerable flexibility.
We offer you a car model Hyundai IONIQ 6, professional leasing our best choice. By leasing a Hyundai IONIQ 6 for 25 months without any contribution in kind for 10,000 km, you can change your electric car at any time. At Beev, Hyundai Ioniq 6 is available for professionals at 641 / month.
The benefits of renting a charging station at your fingertips
To facilitate the transition to electric vehicles, investment in a charging station often requires substantial financial resources.
However, Beev offers a practical alternative: the rental of charging stations. This offer includes two rental options: LOA (Location avec Option d'Achat) and LLD (Location à Longue Durée).
Whether you're an owner looking to implement an electrification strategy, or a lessee without the funds for an initial investment, you can opt to rent a charging station.
In both cases, you rent the terminal and pay monthly installments over a defined period, usually 36, 48 or 60 months.
Electric charging stations for professionals: a sustainable solution
From a financial point of view, opting for leasing allows you to stabilize your budget and enjoy greater financial freedom. With leasing, you pay fixed monthly instalments, giving you peace of mind when it comes to managing your budget.
In the case of long-term leasing (LLD), there are also advantages in not owning the vehicle initially. In addition to using the charging station, you benefit from assistance and maintenance services, which saves you from unexpected expenses. This differs from a Lease with Option to Buy (LOA), where you are responsible for repairs and breakdowns, resulting in additional costs.
What's more, if you don't want to tie up cash, you can book the rent as an expense on your balance sheet. By increasing your expenses, you reduce your net income before tax, which can be advantageous from a tax point of view.
Conclusion
To conclude, the electric car leasing is an attractive solution for companies looking to cut costs and reduce their environmental impact.
Beev, France's leading 100% electric car leasing company, offers solutions tailored to the needs of companies of all sizes.
To find out more, contact us today, our Beev experts will help you.
