SMEs / VSEs: what is a long-term lease?
As a reminder, a long-term lease (LLD) is a type of financing that enables a company to lease an electric vehicle for a period of 1 to 5 years. During this period, the lessee agrees to make fixed monthly payments, while benefiting from a range of services including maintenance, financial loss cover and assistance.
This means that once the contract has been signed, it cannot be terminated, unless there are exceptional circumstances, such as financial difficulties.
Who can benefit from long-term leasing?
Operational leasing is suitable for any size of company (SME, VSE, GE):
- cabs
- the liberal professions
- companies, in any legal form
For further information: Everything you need to know about long-term leasing for electric cars.
Good to know: not to be confused with LOA (Location avec Option d'achat)the purpose of which is to lease an electric car and buy it at the end of the lease, if the lessor is satisfied with the vehicle. If not, the lessor returns the vehicle to the owner.
Lease an electric car
Would you like to lease an electric car? Beev offers you 100% electric cars at negotiated prices, as well as recharging solutions.
What are the advantages of leasing an electric vehicle for SMEs and VSEs?
As we've just seen, leasing is not just for large companies. SMEs and VSEs can also choose to have an electric vehicle for their business.. But what are the advantages of this type of financing?
Taxation
Leasing an electric vehicle has a number of tax advantages, more specifically with regard to the Taxe sur les Véhicules des Sociétés (TVS).
As you know, every company owning one or more company vehicles is subject to the annual TVS. Since the beginning of 2023, 2 new taxes have come into force :
- annual tax on CO2 emissions: an amount will be given according to the CO2 emission rate (fiscal power), depending on the date of registration),
- annual tax on emissions of atmospheric pollutants: an amount will be determined according to fuel type and year of entry into service.
The good news is that electric and hybrid vehicles emitting less than 60 g/km of CO2 are not subject to the TVS.
In addition, leasing an electric vehicle increases your costs. Since the break-even point is high, there are savings on corporation tax (IS).
Read also:
Less restrictive financing
For a small or very small company, choosing to lease your electric car enables you to control your company's cash flow.
Since the leasing amount is fixed each month, expenses are better controlled and anticipated, giving greater budget visibility over the short, medium and long term. As a result, no additional costs are incurred from the beginning to the end of the contract.
What's more, the occupants of the electric vehicle can drive in complete peace of mind, knowing that the owners of the property take care (fully or in part) of the administrative procedures and several services, such as :
- the loan of a bridging vehicle,
- assistance,
- expenses certificate of registration :
- maintenance
- changing tires
- insurance
- regional and business tax
- CO2 tax
- management fee
- transmission fee
- vehicle depreciation.
For a company, long-term leasing is the safe choice, since this type of financing does not use up equity capital, and therefore enables better management of the debt ratio. On this last point, leasing an electric car is not considered as an investment, but as an expense..
In this way, the lease is deducted from the company's taxable income, and the company can better optimize its borrowings for more strategic financing.
In the end, all you have to pay for is the use of the vehicle. Which is a good thing for small and medium-sized businesses wishing to switch to electric mobility, while preserving their cash flow.
Added flexibility
Long-term leasing offers a flexible leasing contract. So, whatever the company's budget, project, needs or activity, vehicle offers are tailored to suit. What's more, these different elements are likely to evolve over time. In this way, the leasing contract can be readjusted as and when required, on a number of points, such as :
- mileage
- subscribed services
- the lease term
What's more, if the lessor has been satisfied with the leasing experience, he or she can reapply after the end of the 1st contract.
Good to know: if you want to encourage your employees to switch to electric mobility, you can offer them a vehicle for commuting or talk to them about social leasingone of the French President's promises for 2023. This social leasing scheme will enable the most modest households to opt for an electric vehicle for €100 a month.
A permanently new electric vehicle
Like any other vehicle, electric cars lose their efficiency over time. To keep on using electric cars, long-term leasing allows you to renew your vehicle. Drivers will benefit from good vehicle performance and lower breakdown risksalmost permanently. What's more, vehicle renewal strengthens the company's brand image, and boosts employee satisfaction and confidence.
Good to know: the relay vehicle is a service that is not necessarily automatic, i.e. it may or may not be included in the rental. This varies from one electric vehicle owner to another.
Financial assistance for the energy transition
Did you know that the French government has set up, and continues to set up, financial incentives for the purchase of electric vehicles?
On the list, you have national financial aids, such as :
- The ecological bonus : applicable since January 1, 2018, this aid will benefit purchasers or leasers of new cars, vans, 2 or 3-wheelers and electric quadricycles, with CO2 emissions between 0 and 20 g/km. The amount varies according to the vehicle chosen.
To find out more, we invite you to consult our article which contains everything you need to know about the ecological bonus.
- The conversion bonus The French government pays the purchaser or lessee of an electric vehicle a sum of money when he or she scraps a combustion-powered vehicle.
In addition to these, you have local aids that each metropolis has established itself.
This is the case of the Ile-de-France region to support SMEs and VSEs in their energy transition. For companies with fewer than 50 employees and annual sales not exceeding 10 million euros, the region is offering assistance for :
- 2 or 3-wheelers and electric quadricycles, up to €1,500,
- electric cars, vans and electric or hydrogen-powered vehicles, up to €6,000,
- trucks and tractors over 3.5 tons, up to €9,000.
Good to know: it is possible to combine this local subsidy with the national subsidy. This cumulation is capped at 50% of the purchase price of the vehicle, all taxes included.
To find out more about this subject, you can run a to find out what kind of assistance is available depending on where you live.
ADEME Green Loan for SMEs/TPEs
To provide SMEs and VSEs with the best possible support for their energy transition, a special aid scheme has been set up: the ADEME green loan. In collaboration with Bpifrance and Ademe, this loan has been set up as part of the Plan d'accélération de la transition écologique des entreprises.
The ADEME Green Loan is designed to help companies finance their energy transition project, by financing tangible or intangible investments with a low collateral value and the increase in WCR (Working Capital Requirement) to launch the project.
This aid has several objectives:
- invest in electric mobility for its employees and goods,
- renew its business by offering products and/or services that protect the environment and/or reduce energy consumption,
- reduce its environmental impact through circular economy* for example.
*Definition: thecircular economy is based on the principle of reusing second-hand goods, such as buying a used car instead of a new one. This not only reduces your environmental impact, but also saves you a lot of money.
What are the loan amounts?
Small or very small businesses can benefit from a loan of between €10,000 and €1,000,000, over a period of 2 to 10 yearswith capital repayment deferred for a maximum of 2 years. The loan is repaid in quarterly installments, with principal amortized on a straight-line basis.
What are the loan conditions?
To obtain this loan, certain conditions must be met:
- the amount of the loan must be less than or equal to the cumulative amount of financial assistance granted for the project,
- the borrower's own funds,
- the project must be associated with external financing, such as equity or crowdfunding, at least as costly,
- a security deposit of 5% of the total amount is required. This is returned once the loan has been fully repaid.
How much does it cost to benefit from this aid?
Please note that in order to benefit from the ADEME Green Loan, costs must be anticipated:
- the preferential fixed rate with ADEME assistance. Eligible companies must be eligible for de minimis aid,
- application fees
- death and PITIA insurance
Want to go electric?
Beev offers multi-brand 100% electric vehicles at the best prices, as well as recharging solutions.
Which electric car is right for a small business?
As an SME or VSE, you can obtain offers tailored to your needs and your project.
Electric cars
Renault Megane E-Tech EV60 220hp
Purchase price €38,000
(list price excluding bonus)
Leasing with no down payment for professionals from €505 / month
- Range (WLTP): 450 km
- Acceleration (0 to 100 km/h): 7.4 sec
- Fast charge (from 20% to 80%): 30 min.
Fiat 500 Sedan 24 kWh
Purchase price €30,400
(list price excluding bonus)
Low-cost leasing for professionals from €412 / month
- Range (WLTP): 190 km
- Acceleration (0 to 100 km/h): 9 sec.
- Fast charge (from 20% to 80%): 24 min.
Volkswagen iD.3 PRO
Purchase price €39,990
(list price excluding bonus)
Leasing with no deposit for professionals from € 546 / month
- Range (WLTP): 429 km
- Acceleration (0 to 100 km/h): 7.3 sec
- Fast charge (from 20% to 80%): 32 min.
MG MG4 Standard
Purchase price €29,990
(list price excluding bonus)
Low-cost leasing for professionals from €365 / month
- Range (WLTP): 350 km
- Acceleration (0 to 100 km/h): 7.7 sec
- Fast charge (from 20% to 80%): 34 min.
Electric vans
Renault Kangoo Van E-Tech EV45 11kw
Purchase price €0
(list price excluding bonus)
Low-cost leasing for professionals from €634 / month
- Range (WLTP): 300 km
Volkswagen ID.Buzz iD.Buzz
Purchase price €59,450
(list price excluding bonus)
- Range (WLTP): 423 km
- Acceleration (0 to 100 km/h): 10.2 sec
- Fast charge (from 20% to 80%): 30 min.
Opel Vivaro-e 200
Purchase price €0
(list price excluding bonus)
Leasing with no deposit for professionals from € 546 / month
- Range (WLTP): 230 km
- Acceleration (0 to 100 km/h): 12.1 sec
- Fast charge (from 20% to 80%): 26 min.
Fiat E-Ducato 47 kWh
Low-cost leasing for professionals from €699 / month
- Range (WLTP): 170 km
- Acceleration (0 to 100 km/h): 10 sec.
- Fast charge (from 20% to 80%): 30 min.
Make your energy transition today, with several new 100% electric vehicles available from Beev!
Bonus: other solutions to speed up your energy transition
Apart from leasing an electric vehicle for your company, which is already a good step, other solutions exist to accelerate your energy transition.
You can do this byinstalling charging stations in your company parking lot. In addition to electrifying the company, you'll be enabling your employees recharge their electric vehicles directly on site. This saves them a considerable amount of time.
At the same time, you can offer recharge cards to your employeesso they can recharge their vehicles at any charging station.
In fact, Beev offers these services with free personalized support. Our advisors will support you from start to finish. Don't hesitate to contact them.
Conclusion
With the above, it's possible for your small or very small business to lease an electric vehicle.
This method of financing will enable you to get around while reducing your carbon footprint and controlling your expenditure so that you can invest in your business.
If you're interested in this subject, we invite you to contact our experts to help you choose your next electric vehicle.
