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What is long-term leasing?
LLD (Location Longue Durée) is a leasing contract established over a period of 1 to 5 years. During this period, the lessee agrees to pay a fixed rental charge, and benefits from services such as maintenance, assistance and financial loss cover, all included in the price.
As soon as the contract comes to an end, the lessee returns the vehicle to the lessor. If the lessee wishes to keep the vehicle and purchase it, he/she must apply to the lessor 6 months before the return date. The purchase price will then be set by the lessor in line with market prices. In this way, the lessee becomes the owner of the vehicle.
Long-term leasing differs from lease with purchase option (LOA), where the final purchase price is set at the start of the lease.
This form of financing is suitable for all types of customer:
- companies, whatever their legal form,
- the liberal professions,
- individuals,
- associations,
- cabs.
To find out more : Should you buy your electric car under a leasing contract?
Why lease an electric car?
There are many reasons and advantages to choosing a leased electric car. Let's take a look at them.
The advantages of long-term leasing
There are many advantages to leasing an electric car:
- Control your budget.
Leasing gives you greater control over your budget, as the monthly rental payments are fixed and smoothed over the period of ownership. With this type of rental, services such as insurance, maintenance and assistance are included in the monthly rate. So there are no surprises when it comes to paying the rent.
- Leasing allows you to change vehicles frequently.
With a leasing contract, you can change electric vehicles frequently. By returning the vehicle to the owner at the end of the contract, you can choose a newer, more efficient one. What's more, at the end of your contract, if you're completely satisfied with the leased vehicle, there's nothing to stop you from requesting a buy-back.
- Test drive a leased car before making a purchase decision.
Leasing an electric vehicle also allows you to test the product before deciding whether or not to buy. By choosing the length of the lease (from 1 to 5 years), you can see if the car suits you, and decide whether or not to buy it at the end of the contract.
How much does a leased electric car cost?
As far as the cost of the leasing is concerned, the cost of the project depends on several factors:
- of the initial price of the electric car,
- the duration of the long-term leasing contract,
- of the chosen mileage,
- the car's residual value, which corresponds to the estimated value of the asset at the end of its useful life,
- services.
To find out the exact cost of your rental, we recommend that you contact our Beev experts. They'll be able to suggest solutions to your specific needs.
To find out more: What electric cars are available for less than 200 euros a month?
Our electric car leasing offers
With Beev, whether you're an individual or a professional, we'll help you find the offer that's right for you.
If you are a private individual, here are some offers for leasing offers that might interest you:
Our offers for for professionals :
How does the long-term leasing procedure work?
With Beev, the procedure for taking out a long-term leasing contract is very simple:
- On our websitechoose the electric vehicle for private or professional.
- Click on "Get my free offer".
- Fill in the form, click on "Send" and one of our Beev advisers will contact you and help you with all the formalities.
Beev takes care of everything, administratively, financially and logistically. During the procedure, you can request a follow-up of your file, and at the end, all you have to do is sign the contract and wait for the car to be delivered.
Can I cancel my lease?
It is possible to cancel an existing rental contract. However, there are penalties to be anticipated. There are several ways to avoid these penalties:
- Lease transfer This solution involves transferring your contract to another motorist. If you choose this solution, all you have to do is find someone willing to take over your contract and the current car. For the procedure, the third party must submit a leasing takeover file to the lessor, together with the necessary documents.
- Early return of the electric vehicle: If you wish to terminate the contract before the end of the lease period, you can return the vehicle early. To do this, you need to inform the leasing company by registered letter with acknowledgement of receipt. In this case, the lessee will have to pay the remaining rental payments, the residual value and additional taxes.
Whichever solution you choose, don't hesitate to let us know your decision. We'll help you get started.
How can I help finance my long-term leasing?
To encourage motorists to switch to zero-CO2 mobility, the French government has set up 2 schemes eligible for the purchase of electric vehicles under long-term leasing: the ecological bonus and the conversion premium. These national subsidies are intended for private individuals and companies.
The ecological bonus
You can take advantage of the ecological bonus offered by the French government for a long-term lease, but also for a LOA (Lease with Purchase Option) or a LMD (medium-term leasing), with no income requirements.
To benefit from the ecological bonus, here are the conditions:
- The vehicle must be new.
- Have purchased or leased the vehicle for at least 2 years.
- The vehicle must emit less than 50g of CO2/km (whether electric or plug-in hybrid).
- The vehicle must be registered in France.
The amount of the ecological bonus depends on the acquisition cost of the vehicle, which must not exceed €5,000.
Good to know: the ecological bonus scale has been increased to €5,000 since January 1, 2023.
Previously, to benefit from the ecological bonus, you had to keep your electric vehicle for 6 months and drive at least 6,000 km before reselling it.
Now, according to the official gazette decree n°2022-669the Energy Code states that motorists must keep their electric vehicles for 1 year. As for mileage, this remains unchanged at 6,000 km.
Good to know: this new decree also applies to vehicles that have been retrofitted.
Here are the amounts to be taken into account:
| Categories | From January 1, 2023 |
|---|---|
|
For an individual : Electric cars costing less than €45,000 (CO2 less than 20 g/km) |
27% of the amount up to €5,000 |
|
For a company : Electric cars under €45,000 (CO2 less than 20 g/km) |
27% of the amount up to €3,000 |
|
Electric vehicles between €45,000 and €60,000 (CO2 less than or equal to 20 g/km) |
1 000€ |
|
Electric vans or hydrogen-powered vehicles costing more than €60,000 (CO2 emissions greater than 20 g/km) |
1 000€ |
|
Plug-in hybrid vehicles at up to €50,000 with a range of 50 km |
0 € |
The conversion bonus
In addition to the ecological bonus, you can also take advantage of the conversion bonuswhich can be combined with the bonus. This aid, granted on a means-tested basis, is designed to help you buy or lease an electric vehicle by scrapping an old petrol or diesel vehicle.
Here are the conditions to meet in order to benefit from the conversion premium:
- If you have an old diesel vehicle, it must have been first registered before 2011.
- If you have an old petrol vehicle, the first registration must be prior to 2006.
- The owner must have owned the vehicle for at least one year.
- The vehicle must be registered in France.
- Have a Crit'Air 3,4,5 sticker or no classification.
- The car must be scrapped at an approved center 3 months before or 6 months after the purchase of a new vehicle.
The amount of the bonus depends on several factors:
- The category of vehicle purchased,
- The applicant's reference tax income per unit (the tax notice to be taken into account will be for the year preceding the purchase of the new vehicle),
- The distance travelled between home and work.
If you want to know the exact amount of your premium, you can do a simulation. simulation or consult the scale applicable from January 1, 2023. To apply for the bonus, go to primealaconversion.gouv.fr.
Conclusion
In conclusion, long-term leasing is one of the best ways to finance an electric vehicle. Your choice of financing will depend on your needs, your objectives and your financing capacity.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
Read our article about :
If you're interested in purchasing an electric vehicle for private or professional use, don't hesitate to contact our Beev advisors.
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