Overview: key benefits
Companies are not spared by the ever-increasing cost of living. Many are looking for ways to cut costs. Electric vans are one solution, as their running costs are relatively low. Compared with a light commercial vehicle, whose diesel fuel currently costs an average of 2 per liter, A model with an average fuel consumption of 9 liters can cover a distance of around 100 km..
What appeals to businesses is that electric van owners can recharge their van directly at the workplace. This saves time, especially as the cost of a charge cost of recharging varies from €1.5 to around €4 per 100 km depending on the electricity supplier and time slot. For a combustion-powered car, the cost is €6 to €9. As part of the energy transition law for green growth, the French government has set a target of 7 million charging stations installed by 2030. Companies have a duty to contribute to this global effort. They are legally obliged to equip part of their parking lots with electric charging stations accessible to their employees. To encourage the French to make the ecological transition, some cities in France are even offering free charging stations within their urban areas. A godsend for businesses.
Also read ⇒ How much does recharging an electric car cost?
What are the options available to VSEs, SMEs and craftsmen?
The purchase of an electric utility vehicle is a major decision for any company. If you're planning to buy several, you're looking at a price tag of several tens of thousands of euros. There are a number of ways in which companies can finance their project.
At Beev, our automotive experts will help you find the electric vehicle and charging solution best suited to your needs.
Classic credit
Applying for a loan from a bank to finance the purchase of electric vans is an option. It commits the company for long periods and can quickly become a source of debt. It can be a heavy burden for VSEs, SMEs or craftsmen who do not yet have ideal financial stability.
Credit also has a cost, with a number of additional charges (monthly repayments, insurance). It can be less attractive if interest rates are very high, for example. Another risk is that vehicles lose value on the second-hand market if the company wants to part with them. These are key factors to take into account when you consider that companies of this size have many expenses.
But taking out a loan allows her to retain financial resources. She can keep her investment capacity for other projects. Since she owns the electric utility vehicle, she is free to resell it at any time. A good way to renew her fleet, for example.
Subsidies and financial assistance
To encourage the French to go electric, the government has introduced a number of measures with the mobility law . Its aim is to make everyday transport easier, cheaper and cleaner. The aim is to reduce CO2 emissions by 37.5% by 2030. The Climate and Resilience Act introduced in 2021 commits the State to respecting the reduce greenhouse gas emissions by at least 55% by 2030.
In addition to these two regulations, public authorities offer subsidies and grants dedicated to professional electric vehicles: the conversion bonus and the ecological bonus. They offer numerous financial advantages to encourage the ecological transition. The government's energy transition website even lets you make a simulation to find out more about the grants and amounts to which you are entitled.
Ecological bonus
The ecological bonus for companies is a financial subsidy granted by the French government to companies that carry out projects that have a positive impact on the environment. The bonus can be granted in the form of a tax credit or subsidydepending on the project and financing arrangements chosen. The aim of this scheme is to support companies investing in clean technologies and environmentally-friendly practices, in order to contribute to France's ecological transition. Projects eligible for the Ecological Bonus for businesses are generally those aimed at reducing greenhouse gas emissions, saving energy or preserving biodiversity.
For companies wishing to change their vehicle fleet in 2023, the ecological bonus has been increased from 4 000 € à 3 000 € for private vehicles and to 4 000 € for light commercial vehicles (LCVs)from January 1, 2023. As mentioned above, you can combine these two grants for your company, but there are limits: for Class 1 electric commercial vehicles, the maximum is 10 000 €Class 2 commercial vehicles are capped at 12 000 € and class 3 commercial vehicles have a limit of 14 000 €.
| Type of vehicle | Criteria | Legal entities |
|---|---|---|
|
Utility vehicle |
Electric drive |
40% of acquisition cost up to €4,000 |
|
New passenger cars |
Electric drive |
27% of acquisition cost up to €3,000 |
Cash purchase
This is the easiest way to finance an electric utility vehicle. Buying an electric car with cash is less expensive in the long term than buying on credit, because you won't have to pay interest on a loan.
The administrative formalities are less complicated and time-consuming than with other financing options (credit application, creditworthiness study, guarantees, application fees). You can also take advantage of government grants and subsidies.
A cash purchase is expensive and represents a major investment for small businesses. For example, the Peugeot e-Partner costs 32 700 €This represents a significant investment, and it can be difficult to find the necessary funds.
Long-term rental
The long-term leasing (LLD) enables a company to lease one or more electrically-powered commercial vehicles for a fairly long period. The lessee pays a monthly rental fee to use the vehicle, and is responsible for any maintenance and repairs required during the lease period. For example, a lessee signs a leasing contract (usually from 12 to 60 months) for a Renault Van Kangoo E-Tech. He pays a monthly rental of 512/month including :
- vehicle rental
- maintenance
- Assistance
- Financial loss coverage
- electricity required for recharging
At the end of the contract, the customer has the choice of renewing the contract, returning the vehicle or buying it at a negotiated price.
Electric commercial vehicles are also available for leasing on Beev.
Find out more about long-term leasing
Long-term leasing is often used as an alternative to purchasing an electric vehicle, as it enables the lessee to enjoy the benefits of owning an electric vehicle without having to bear all the associated costs.
It's an excellent way for companies to make the transition to electric vehicles without the high acquisition costs. What's more, long-term leasing also offers a number of advantages in terms of flexibility and ease of use. Companies can choose from a range of EUV models and sizes to suit their specific needs, and they don't have to worry about maintenance or battery management, as these tasks are usually taken care of by the leasing company.
It's important to note that long term leasing of EUVs is not without risks, so it's important to be aware of the risks involved in leasing these vehicles, and to ensure that leasing contracts include appropriate hedging clauses. Companies can also check tax incentives for electric vehicles before making a decision to assess the additional financial benefits.
In summary, leasing electric commercial vehicles is an increasingly popular choice for businesses, due to the growing demand for cleaner, more sustainable means of transport, lower acquisition and operating costs, and the flexibility and ease of use it offers. It is important to check leasing risks and tax incentives to assess the additional financial benefits.
Leasing with purchase option
A Lease with Option to Buy(LOA) is a type of vehicle leasing contract that enables a company to lease an electric utility vehicle for a fixed period, generally from 12 to 60 months, and to have the option of buying the vehicle at the end of the lease period, which is the great advantage of this type of financing. The company pays a monthly instalment for the use of the electric vehicle, and at the end of the contract has the option of buying back the vehicle at a pre-determined, often very attractive, price.
LOA is an interesting option for SMEs, VSEs and craftsmen who don't want to make a commitment just yet. They can drive a brand-new vehicle without having to make an immediate purchase, but can do so at the end of the lease period. The LOA is even more attractive as it allows maintenance and repair costs to be spread over a longer period, and also includes taxes and insurance. This financing option also gives small businesses greater flexibility, enabling them to renew their vehicle fleets much more easily, without having to worry about reselling the electric commercial vehicles in their fleet.
If you opt for this type of financing, make sure you have the capacity to pay the monthly installments. Beev strongly recommends that you find out about the legal framework governing LOA. Remember, you are not the owner of the electric commercial vehicle! Last but not least, make sure you are properly insured:
- You'll have to pay for repairs or damage to other vehicles.
- If your vehicle is damaged or destroyed in an accident or other incident, repairs or replacement will be at your expense, unless you opt for financial loss insurance.
- In the event of a breakdown, any repair or replacement of the battery or other components of your vehicle will be at your expense unless you opt for vehicle maintenance and assistance.
Find out more about Leasing with a purchase option
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Conclusion
Purchasing a cash-electric vehicle requires a significant investment, and finding the necessary funds can be difficult. Assessing your company's financial situation and comparing different financing options before making a decision is fundamental.
It's important to weigh up the advantages and disadvantages of buying an electric vehicle on cash, credit, leasing or lease before making a decision. It may be useful to seek professional advice (banker, broker, etc.) or compare different financing options to find the solution best suited to your situation. At Beev, our experts are on hand to answer your questions and help you make the most of your project.
