France launches a challenge: social leasing for electric cars... for less than 100 euros a month!

Only a few days ago, the German government announced it was withdrawing subsidies for the purchase of electric cars. In other words, it will no longer contribute an amount to help the car industry sell those electric cars, which do not seem to be taking off as expected. The French government also took a step in that direction, but aimed at electric cars coming from China and giving priority to those manufactured in Europe.

But things have taken a considerable turn, because that same French government has just announced that it will launch an aid scheme to help people get an electric car through a social leasing scheme. This will come into force on 1 January 2024, so it has already generated a lot of interest among potential French users.

What the social leasing scheme consists of

This social leasing scheme can be used either under a leasing arrangement, that is, rental with a purchase option, or under a renting arrangement. In this second option, the vehicle is returned at the end of the rental contract. The conditions are quite demanding, but many French people are expected to be able to join this measure.

To access this leasing, you must prove a reference income of less than 15,400 euros per unit and year. This calculation does not refer to gross income, but rather to variables applied in that country. People who access this aid will have to drive at least 8,000 kilometres a year or live at least 15 kilometres from their workplace.

The cars that fall within this programme are electric vehicles priced below 47,000 euros and with the lowest battery and motor version in the range. For the time being, they are only available to beneficiaries for electric cars from Renault and Stellantis.

Other conditions for taking part in this programme

The minimum term to qualify for this social rental is three years. The vehicle must be delivered on the date set out in the contract. This will be the case even if the contract’s withdrawal period, which is set at 14 days, has passed. As for the price, the average will be 100 euros, although depending on make and model it may vary both upwards and downwards, but in no case will it reach 200 euros.

In addition, it will be a leasing or renting contract with no deposit. The state will take care of paying the first instalment, which usually includes that deposit. From then on, depending on each brand’s conditions, a total of between 12,000 and 15,000 kilometres may be included in the price. If more kilometres are driven, the price may increase slightly.

The items not included in the price of the social rental are compulsory vehicle insurance and maintenance. On the other hand, life, disability and job loss insurance is included. A wallbox for charging the car is also added, so the offer is quite attractive.