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.
Reminder: what is electric car leasing?
Government initiatives, such as the LOA (lease with option to buy) offer from electric cars 100 per month for low-income households, have helped to popularise electric car leasing. According to figures published by the French Ministry for Ecological Transition, more than 50,000 French people have used the "social leasing" scheme, more than twice the initial quota of 20,000 vehicles. The aid was suspended on 14 February 2024 and will probably be renewed in 2025.
But contrary to popular belief, leasing is not just for private individuals. Companies can use it to optimise their transition to sustainable mobilityregardless of the number of vehicles in their fleet.
For professionals, leasing is advantageous on a number of levels, not least because the rent is included in current expenses, in the same way as an office lease.
On paper, the principle of electric leasing is simple: it's a contract that allows you to use an electric vehicle without having to buy it, in return for the payment of a monthly lease... The subscriber can choose between two options: the long-term leasing (long-term leasing) or LOA (Lease with Purchase Option). In practice, the contract contains a number of conditions, including the following early return (returning a leased car before the end of the contract), the return report or exceeding the mileage limit.
How does long-term leasing work?
Long-term leasing allows a company to build up a fleet of company vehicles or to make one or more company cars available to its employees, without becoming the owner.
The contract is concluded for a fixed period (between 3 and 5 years). Once this period has expired, the vehicle must be returned to the leasing company in accordance with the terms and conditions laid down.
The advantages and disadvantages
The main advantage of long-term leasing for companies is that it offers them a better control over their cash flow. It is no longer necessary to invest large sums to acquire a new electric car, the value of which will be subject to a discount. Monthly payments cover the use of the vehicle and related costs for the duration of the contract, freeing professionals from constraints and unforeseen events (maintenance, repairs, assistance).
From a tax point of view, leasing costs can be deducted from sales subject to SRI. Leasing an electric vehicle allows you to avoid paying TVS (Taxe sur les Véhicules des Sociétés - Company Vehicle Tax) and the ecologic malusThese amounts will increase significantly in 2024 for internal combustion vehicles.
On the other hand, with a long-term lease, the contract holder does not have the option of purchasing the vehicle. On the other hand, they have to pay close attention to the annual mileage limitabove which additional charges will apply.
How does Hire Purchase Option (HOP) work?
Leasing in LOA (Lease with Purchase Option) at first glance resembles the LLDThe difference is that the company has the option of buying the vehicle at the end of the contract by paying a residual value (trade-in value) determined in advance.
The purchase option is optional: in other words, the policyholder is free to return the vehicle at the end of the contract.
The advantages and disadvantages
The LOA contract also sets a maximum annual mileage. However, the terms and conditions can be relaxed if the limit is exceeded. For example, the ceiling can be adjusted during the term of the contract to reflect actual needs. Maintenance and repair costs are not systematically included in the rent under a LOA contract. It's important to check all the clauses to avoid unpleasant surprises.
Finally, the overall cost of acquisition must be taken into account. If the subscriber decides to buy the vehicle at the end of the contract, he or she will have to pay the residual value, which will be added to the lease payments already made. In this context, leasing can be more expensive than cash purchase.
The LOA contract also sets a maximum annual mileage. However, the terms and conditions can be relaxed if the limit is exceeded. For example, the ceiling can be adjusted during the term of the contract to reflect actual needs. Maintenance and repair costs are not systematically included in the rent under a LOA contract. It's important to check all the clauses to avoid unpleasant surprises.
Finally, the overall cost of acquisition must be taken into account. If the subscriber decides to buy the vehicle at the end of the contract, he or she will have to pay the residual value, which will be added to the lease payments already made. In this context, leasing can be more expensive than cash purchase.
What is the procedure for returning a leased electric car?
You're wondering what to do at the end of the leaseWhat happens if you have to return the vehicle as the end of your contract approaches? If you have taken out a long-term leasing contract, you must return the vehicle to the leasing company. As we saw earlier, returning the vehicle is also an option under a LOA leasing contract.
This involves more than just returning the leased car on time. It requires a thorough inspection of the vehicle, both visually (general appearance) and mechanically. This must be carried out by an independent expert commissioned by the leasing company. The purpose of this "examination" is to determine whether the vehicle returned has suffered any abnormal damage that goes beyond legitimate wear and tear, and to invoice you for any repairs.
There are three main stages to the vehicle inspection on return: inventory, mileage check and service book check.
The state of play
The inspection consists of checking that the vehicle returned at the end of the leasing contract is in good general condition. It is based on a visual examination to detect any damage that does not correspond to normal use. To carry out this inspection, the expert will refer to various control points which include the bodywork (impacts, scratches), bumpers and mouldings (trim strips), wheels and tyres, windows and mirrors (any broken glass) and the passenger compartment.
Any damage detected will be assessed according to its seriousness and will be subject to additional charges, payable by the tenant.
Damage that is considered to be minor (minor scratches, for example) is normal wear and tear and will not incur any additional costs.
Checking mileage
Mileage must correspond to the annual ceilings set out in the leasing contract. As a result, any excess may give rise to variable charges (usually a few euro cents per kilometre driven). But the bill can quickly mount up if you're not careful. For example, for an excess of 5,000 km billed at 20 euro cents per km, you will have to pay a charge of 1,000 euros.
Refer to the rental contract to check the financial penalties incurred if the contract is exceeded.
Verification of interviews
The final part of the inspection concerns the mechanics. You'll need to hand over a number of documents to the specialist appointed by the lessor, such as the maintenance booklet, the vehicle's history and the vehicle's history. technical inspection reports and invoices for repairs carried out during the rental period.
Special case: how do I return a leased car before the end of the contract?
You can return a leased vehicle before the end of the contract period. To do this, you must notify the lessor (by registered post) and obtain his agreement. Premature termination of the lease generally entails additional costs for the lessee, who must pay compensation to the leasing company.
Another (less expensive) solution is to transfer the leasing contract to another lessee. Taking over a leased vehicle allows the original contract holder to withdraw from the contract without having to pay any penalties.
How to prepare for the handover of a leased vehicle: our 5 tips
According to the JSL, the cost of refurbishment under a leasing agreement amounts to almost 800 euros on average (2019 figures). Good preparation upstream of the return of a leased vehicle is essential to avoid having to pay a hefty bill at the end of the contract.
Beev gives you 5 tips for returning your car with peace of mind and at no extra cost.
Be vigilant about exceeding the mileage limit
Exceeding mileage limits can lead to substantial penalties, which are avoidable. It is essential to pay close attention to the annual ceilings set throughout the contract. It can be difficult to gauge the distance you will have to travel, particularly if you have to make business trips that are difficult to plan.
However, some leasing companies are a little more flexible and allow you to adjust the ceilings during the term of the contract.
Respect the return date of the electric vehicle
It may seem obvious, but the first thing to do to ensure a smooth handover is to respect the expiry date of the contract. This requires a certain amount of planning, because you need to organise both the inventory of fixtures and the transition, to guarantee continuity in terms of mobility and cover the needs of your employees. In this context, the tenant should make the appointment a few weeks before the end of the contract.
Please note that the landlord does not necessarily send a reminder before the due date.
Return the vehicle in good condition to avoid repair costs
Before moving out and handing over the keys to your landlord, you should certainly take the time to clean the flat you are about to leave. In the same way, you should clean your electric rental car before handing it in. Ideally, this should be done by a professional to ensure impeccable results.
The aim is both to make a good impression and to facilitate visual inspection of the vehicle. Take the opportunity to polish the bodywork, remove minor scratches and reinflate the tyres.
Carry out maintenance and repairs as required
If it's been several months since your leased vehicle's last roadworthiness test, it may be a good idea to take it to the garage to check that it complies with the inspection checkpoints. These are listed on the feedback sheet attached to the rental contract. In particular, they cover the presence of the equipment supplied with the electric vehicle (spare wheel, anti-theft nut, inflation kit, luggage cover, recharging cable, SD card, etc.) and the operation of the main mechanical components (gearbox, etc.), batteryclutch, handbrake, etc.).
A professional garage will be able to carry out minor repairs (changing the windscreen, replacing rims, etc.), which will save you the (often higher) costs charged by leasing agencies.
Don't forget to hand in your administrative documents
La checking the maintenance log and documents relating to vehicle maintenance are all part of the return procedure. Make sure you have all the necessary documents ready to hand over to the expert on the day. Failure to do so will delay the final handover of the vehicle. Don't forget your insurance documents and repair bills in the event of a claim during the rental period.
What happens next?
At the end of the inspection, the hirer will be issued with a statement of return (procès-verbal de restitution) and, if applicable, an invoice summarising any charges to be paid.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
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Whether you are a company or an individual, Beev offers you electric car leasing and made-to-measure support. When you lease with Beev, you benefit from :
- negotiated prices thanks to winning partnerships,
- a transparent offer, with no increased first rent or deposit,
- maintenance and support included for all contracts.
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