It was a campaign promise from Emmanuel Macron. Among the novelties of the 2023 budget, presented next Monday, will be car leasing at 100 euros per month for an electric car.
After the ecological bonus and the conversion bonus, French people who want – or need to go electric with the rise of low-emission zones (nearly 50% of motorists will have to change cars by January 1, 2025 ) – will soon be able to turn to a new formula: leasing at 100 euros per month.
From next year, French people with low incomes (young people, medico-social sector, households under conditions of resources or far from public transport) will be able to start driving in electric for a hundred euros monthly. Maintenance would be included. The contribution should be limited to the maximum after the delivery of the ecological bonus and the conversion bonus.
A leasing to drive in electric city cars
At this price, the models offered will above all be city cars, such as the Dacia Spring, Renault Twingo, Peugeot e-208 or Fiat 500e. Manufacturers are already offering competitive offers on these models, around 150 euros per month.
And the banks are also embarking on the leasing of green cars, with current formulas over 7, 8 or 10 years, to lower the amount of the monthly payments as much as possible.
What envelope for the device?
It now remains for the State to finance the device: Emmanuel Macron’s entourage mentioned during the campaign a budget of 50 million euros to subsidize 100,000 vehicles per year. An envelope deemed “a bit fair” by the sector.
As a reminder, the State spent last year 293 million euros for 115,000 conversion bonuses and 1 billion euros for 264,000 ecological bonuses.
“Prime the Pump”
The government specifies that the envelope devoted to leasing in 2023 is a first budget to “prime the pump” and launch the device. Credits will increase from 2024.
There is also the question of financing for the most modest households. And who happen to be the first to be affected by the traffic restrictions to come. Stakeholders refer to a State guarantee with banks to make these households solvent and eligible for the scheme.
The problem of made in France
The executive will finally have to solve the problem of production because these electric city cars are today most often manufactured in China, in Eastern Europe but not in France. The government fears to offer the market to foreign manufacturers and in particular to Chinese competition which is preparing to market many electric city cars in the coming months.
France is waiting for Renault’s R5, which will leave the Douai factory in 2024, the next electric models produced by Stellantis in France and the future 4L, unveiled at the next Paris Motor Show. A World Cup which should see the arrival of Emmanuel Macron, expected on October 18. The Head of State could give on this occasion all the details of his electric leasing offer.