What is social leasing?
Social leasing is a government initiative aimed at making electric mobility accessible to all, particularly low-income households.
The electric vehicle leasing scheme provides for a minimum commitment period of 3 years. Visit monthly payments are capped at €100with a limit raised to €150 for family configurations. And more, no initial contribution is required this contribution is paid in full financed by the State.
Worth noting This amount does not include insurance or the cost of recharging.
Read on for more information : How much does it cost to charge an electric car?
For more information, this social leasing scheme :
- includes new or used vehicles first registered less than 3 and a half years ago,
- offers a duration of leasing at least 3 years oldrenewable once, for one year. maximum of 6 years,
- offers a choice between long-term hire (LLD) and hire with an option to buy (LOA), enabling the vehicle to be purchased at the end of the contract.
To consult : Hire purchase or lease purchase: which formula should you choose? The essential guide
To go further, the content of the social leasing contract should include the following information:
- Duration For a minimum period of 3 years, renewable, with or without a purchase option.
To consult : Social leasing: renewal of the LOA for electric cars in 2025
- Mileage a minimum of 12,000 km/year at no extra cost.
- Estimated cost of rent With monthly payments generally set at €100/month or less, rising to €150/month for larger models, excluding options (servicing, car insurance, etc.).
- Provisional delivery date : specified in the contract.
- Free cancellation Cancellation: possible after a delay in delivery of more than 14 days, as long as the vehicle has not been delivered.
- Cancellation conditions Cancellation: possibility of cancelling free of charge (excluding any costs of reinstatement) in the event of death, disability or loss of employment.
Since its introduction in 2024, the social leasing has benefited over 50,000 householdsa A significant step towards the democratisation of electric vehicles in France. Formerly perceived as a luxury productthese vehicles are now accessible to low-income households.
By reducing rental costs, the State intends to encourage the transition from polluting internal combustion vehicles to electric modelsemissions, thereby playing an active part in reducing CO₂ emissions.
That said, the uncertainty surrounding the renewal of this scheme over the last few days has been resolved: the social leasing for electric vehicles will be extended to 2025. As mentioned in the preamble, this was announced by François Durovray in a statement sent to AFP.
This is a scheme that will be maintained, the details of which are currently under discussion. It needs to be aimed at the right targets, particularly the most modest members of the French population.
This initiative has contributed to boost sales of electric vehicles in Francebefore being suspended due to its huge success.
Read more : Social leasing: the government has already put an end to the 2024 scheme for electric cars
The French government's ambition to accelerate the decarbonisation of transport
Faced with the urgency of climate change, the French government is committing to a ambitious ecological transitionplacing the decarbonising transport at the heart of its priorities emissions by 2025. This sector, which is responsible for a significant proportion of greenhouse gas emissions, requires concrete and immediate action to meet the targets set by the Paris Agreementwith the aim of :
- from limit global warming,
- and fighting climate change.
Indeed, the development of electric mobility and clean vehicles in France responds to environmental, industrial and social challenges. Our priorities include
- improving air quality,
- reducing energy dependency,
- and reducing greenhouse gas emissions.
As previously stated, the transport sector, the main contributor to CO₂ emissions in France (31 % in 2019), is particularly targeted by initiatives such as the National Low Carbon Strategy (SNBC). This aims to achieve complete decarbonisation of land transport by 2050 and forecasts a 28 % reduction in sector emissions compared with 2015.
But that's not all: at European level, ambitious regulations are imposing drastic reductions in CO₂ emissions from new vehicles, with a sales of internal combustion engines are scheduled to cease by 2035. The aim of these measures is to accelerate technological innovation and meet the challenges of climate change while boosting industrial competitiveness.
As a result electric and plug-in hybrid vehicles play a key role in this transition. The uptake of these products has risen sharply, with market share of 26 % in 2023, compared with 3% in 2019.
In addition, thanks to public support, such as the grants of up to €15,000 for purchases in low-emission zones (ZFE)Electric vehicle registrations continue to grow, reinforcing our climate targets.
This is the which is why the return of social leasing to €100 per month is one of the key measures.This is an initiative aimed at democratising access to sustainable mobility solutions. At the same time, the Finance Bill provides for an increase in the ecologic malus on internal combustion vehiclesThis will further encourage consumers to opt for electric models.
What are the eligibility criteria for Social Leasing 2025?
To qualify for a €100 electric car lease, social leasing customers will need to have a modest income and be in employment in 2025. Normally, as in the previous year, the following conditions will have to be met:
- Be of age and provide proof of residence in France.
- The tax household must present a reference tax income (RFR) per part less than €15,400.
- A couples with one child can benefit if its taxable income remains below €39,600.
- Le place of residence must be more than 15 km from the workplaceand you must use your own vehicle for travel.
- If you are an employee, a certificate from your employer proving the distance is required.
- If you are not an employee, you will need to provide a certificate of honour accompanied by a proof of membership of a social security scheme for the current year.
- Drive more than 8,000 km a year in the course of their professional activity.
In addition to these criteria, other methods such as the ability to cover ancillary costs (insurance, maintenance) could be assessed.
Worth noting You have the option of check your eligibility for the programme social leasing at €100 per month using the simulator available on the Agence de Services et de Paiement website (ASP).
Leasing at €100 a month: challenges to overcome
This year, the ecological transition and the support for the electrification of vehicles are at the heart of the debateHowever, the budgetary adjustments reveal significant constraints.
Tabled in the National Assembly on 10 October 2024 and adopted by the Council of Ministers, the Finance Bill for 2025 aims to reduce the public deficit to 5 % of GDP by 2025 and below 3 % by 2029.
The bill, under pressure from deficit reduction targetsincludes cuts in support for the purchase of electric vehiclesThe aim is to rationalise public spending while adapting incentives to the growing maturity of the clean vehicle market. Green taxation is also becoming tougher.
Consolidation initiatives will mainly target public spendingwhich represent almost 57 % of GDP in Francecompared with less than 50 % on average for all European countries in 2024.
Worth noting The debates currently underway in the Assembly are leading to constant changes to the text, but certain major points are emerging in theawaiting a final vote by the end of the year.
As part of the 2025 Finance Act, a number of adjustments are planned for the electric vehicle sector in France. As a reminder, these changes aim to redirecting incentives and balance the budget while remaining part of a ecological transition logic.
However, it is important to remember that a A decree will be published by the end of the year on the distribution of the budget and therefore of the new subsidies allocated..
Decrease in the budget allocated to electric mobility
Against the backdrop of a slowdown in the automotive market, the sales of electric vehicles rose by 6 % in the first 9 months of 2024. However, this growth will be much less marked than in 2023, the year in which the registrations jumped by 45 1TP3Q.
To consult : Slowdown or new start? Electric car sales
This is due in particular to a environmental bonus decreasing from year to year. This financial incentive is gradually being reduced and now only includes electric vehicles produced in Europe: set at €5,000 in 2023it is rising to €4,000 in 2024 for individuals and €7,000 for businesses. for the most modest householdsin crowding out professionals that same year to be eligible for this aid, who was initially entitled to €3,000.
Read more : Tax on Chinese electric cars: the impact on Europe
As a reminder, in 2024, the funds allocated to aid for the transition of the car fleet amounted to 1.5 billion euros. Gabriel Attal, who was still Prime Minister at the time, announced a reduction of 500 million euros for the following year, although the government assures us that the most modest households will remain the priority for social leasing. At the same time, the potential increase in ecologic malus is expected to generate additional revenue in order to partially offset this reduction in funding.
This dynamic reflects the government's intention to "rationalise and simplify support schemes for the purchase of clean vehicles"as suggested by Matignon.
However, there are a number of reasons for this, 650 million is the amount represented by social leasing in 2024 (including the ecological bonus) for 50,000 registered electric vehicles, as well as a €13,000 subsidy per household.
In fact, for the 2024 edition, this programme had to be suspended due to the scale of the requests, underlining the fact that it was not possible for the event to be held in 2024. efficiency and its popularitywhile revealing its budgetary constraints.
To illustrate this point, although the government had initially forecast between 20,000 and 25,000 beneficiaries for 2024, in the end the figure was 50,000 electric vehicles ordered under the social leasing scheme. This offer, which includes both electric city cars 100 per month than family cars at €150 per monthwas an unprecedented success.
To consult : Top 10 electric family cars for travel and holidays in 2024-2025
With over 90,000 applications registered in just 6 weeksThe scheme prompted the government to double the number of vehicles financed. However, high demand led to the suspension of the scheme from 15 February 2024 until the end of the year.
Financial impact on concessions
For 2024, car dealerships have borne the full brunt of the financial impact of the social leasing scheme.
Indeed, the latter found themselves in theobligation to advance the aid promised by the Stateup to up to €13,000 per caseas explained earlier.
With 50,000 files approvedor double the initial estimatesthese players have had to manage a substantial loss of earningsmainly due to delays in repayment. This critical situation has undermined the financial equilibrium of some concessions, which have been forced to seek exceptional bank loans to cover this temporary deficit.
According to Xavier Horent, Managing Director of Mobilians, theThe State has accumulated a debt of more than 320 million euros to concessionsincluding environmental bonus and subsidies linked to social leasing.
The government must take immediate action and assume its responsibilities under the strategic industry contract signed on 6 May. The gap between government announcements and reality is worrying.
The reimbursement platform was therefore reopened on 30 May 2024 in order to resolve the concessions' financial crisis.
Company fleets and the LOM law
Company fleets also represent a major strategic challenge in the decarbonisation of transport.
Today we're talking more about corporate fleets.
In fact, these are 50 % of new vehicle registrations and play a key role in fuelling the second-hand market. However, only a few large companies currently comply with the requirement to acquire 10 % low-emission vehicles.
Read more : Ecological transition: 60 % of the 3,447 French companies concerned do not comply with the LOM law
In short, the absence of significant support measures for social leasing could slow down the growth in sales of electric vehicles to both private individuals and businesses.
Social leasing 2025: electric vehicles available
As for 2024, this social leasing scheme could apply to electric cars with a maximum sale price of €47,000 and a mass not exceeding 2.4 tonnes. For new vehicles, a minimum environmental score will also be requiredThis is in line with the new criteria defined for the 2025 environmental bonus.
It is important to note thatno official announcement has been made regarding the conditions for obtaining social leasing.
Naturally, the list of models achieving a minimum environmental score highlighted city cars and electric cars produced in Europe, including :
- Fiat 500e,
- Citroën ë-C3,
- Opel Corsa-e,
- Opel Mokka-e,
- Peugeot e-2008,
- Renault Twingo E-Tech,
- Renault Megane E-Tech.
To consult : New Citroën ë-C3: the affordable electric city car available on social leasing!
| Brand | Model | Type of vehicle |
|---|---|---|
| Fiat | 500e | Electric city car |
| Citroën | ë-C3 | Electric city car |
| Opel | Corsa-e | Electric city car |
| Opel | Mokka-e | Electric SUV |
| Peugeot | e-2008 | Electric SUV |
| Renault | Twingo E-Tech | Electric city car |
| Renault | Megane E-Tech | Compact electric |
Conclusion
The French government has renewed the programme of long-term leasing of low-cost electric vehicles, known as social leasing, for 2025.
The full details of the 2025 programme are not yet known, as the decree has not yet been published, but it is expected that the eligibility conditions will remain relatively similar to those for 2024. However, it is important to point out that this social leasing scheme will not be extended until the second half of 2025.
In fact, the system not only demonstrates the the government's determination to speed up the ecological transitionbut also its commitment to reducing inequalities in access to clean technologies. However, its success will depend on the final terms and conditions, which will be unveiled shortly, and on the State's ability to ensure its long-term future.
In addition, at the inaugural press conference for the Paris Motor Show 2024Carlos Tavares, Chairman of Stellantis, said expressed its support for the idea of extending social leasing to second-hand vehicles.
Read more : End of Carlos Tavares' term at Stellantis: What legacy for electric cars?
To be continued...
