Cheap EVs for everyone: France launches ‘social leasing’ at €40/month

France aims to democratize access to electric vehicles with a freshly launched “social leasing” program that allows low-income drivers to lease electric cars for as low as €40, about $43. That includes no down payment and free charging, in some cases, for six months.

President Emmanuel Macron announced the program back on October 22, with a target of lease payments of €100 ($109) per month for low-income drivers, but automakers have managed to bring that price down even further. Eligible drivers don’t have to pay a down payment, which is subsidized by the government. 

Similar to the vehicles that are eligible for green tax incentives, the program also favors electric models produced in France and Europe – and the smaller, the better. Renault’s much-anticipated new Twingo E-Tech will be on offer at €40 a month, including maintenance, assistance, and even recharging for the first six months. The Fiat 500e will be on offer from €89 a month. Peugeot has announced its E-208 at €99 per month, and Open will lease its Corsa-e at 94 euros. Citroën’s ë-C3 will be available to lease for €54 a month.

To qualify for the social leasing program, French residents must have an annual income of no more than €15,400 ($16,815), travel more than 8,000 km (4,971 miles) per year, and live at least 15 km (9 miles) away from their workplace. If you are eligible, you can enjoy a three-year lease contract with the option to purchase at the end, and the contract covers insurance costs and cancellation in the event of death, disability, or unemployment.

Macron has said that by 2027, France will have produced at least 1 million electric vehicles and opened four battery plants in the country. 

Electrek’s Take

The criteria are extremely restricted to families falling €5,000 below the minimum wage, which is €20,966 in France. Still, it’s a start, and the government stated that between 4 and 5 million people in France are currently eligible for social leasing. The program, too, will get off to a slow start, starting January 1, with some 20,000 leases set for 2024 before ramping up. 

As part of Macron’s package to reduce greenhouse gas emissions, France has a €700 million package to boost commuter trains to hopefully get fewer people to use their cars, electric or otherwise, altogether.