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DRIVING

How France’s €100-per-month electric car lease scheme works

Motorists in France can now take advantage of a new deal for leasing electric vehicles, aimed at boosting take-up by helping lower-income households with the costs - here's how it works and who is eligible.

Published: 14 December 2023 16:06 CET
Updated: 19 January 2024 13:17 CET
How France's €100-per-month electric car lease scheme works
A plugged electric vehicle. Some German subsidies for the vehicles are ending. (Photo by PHILIPPE HUGUEN / AFP)

The cost of running an electric car is considerably lower than running a petrol or diesel car, but they are more expensive to buy – meaning that for many lower income households, switching is not a possibility.

This is why the government is running the leasing scheme, which was announced by president Emmanuel Macron in December, and which handed over the keys to the first car in January.

For example, the Renault Megane E-Tech (an electric vehicle, available via the leasing scheme) cost about €34,104 online, while the petrol model was €31,300. 

Meanwhile, the electric Citroën C4 (available in the scheme) was listed at €35,740 online while the petrol version was €26,440.

The maximum cost per family-sized vehicle under the leasing scheme will be €150 monthly, excluding insurance and other optional services. There will be no additional administrative fees.

That being said, people must agree to a (potentially renewable) leasing contract of at least three years, and at the end of the period, they can choose to either return the vehicle or purchase it (based on its updated value).

Which types of cars?

Several different car models are covered under the scheme, depending on availability.

Participants will be allowed to choose the vehicle, as long as it meets eligibility criteria and is still available. For example, if leasing a new electric car, the purchase value must be less than or equal to €47,000.

Christophe Musy, the head of Stellantis – a market leader in electric vehicles in France – told Le Parisien that they will participate in the scheme.

“We will offer nine models in 2024, eight of which will be available as soon as the system opens” adding that the new Citroën ëC3 will go for €54 per month, while the electric Fiat 500 will be priced at €89 per month.

Vehicles available for lease, https://www.ecologie.gouv.fr/

Who gets to take part?

The scheme is means-tested, and it is only available to those over 18 who can prove they live in France – there is, however, no requirement to be a French citizen.

In order to qualify, your household must have a taxable income (revenu fiscal de référence) of €15,400 per person. If you are unsure whether you would qualify, you can find the listed amount on your most recent tax declaration.

This amount comes out to a monthly net income of about €3,300 per month for a couple with one child, according to calculations by Le Parisien.

According to Le Figaro, about 25,000 people will be eligible in 2024.

Initially, people who rely on their vehicles to get to and from their place of work will be favoured. These ‘heavy drivers’ (gros rouleurs) include people who drive more than 8,000km as part of their professional activity and/or live at least 15km from their place of work.

For employees (salariés), you will need to ask your employer for a statement or form proving the distance. 

The goal is that through 2024, the scheme will be extended to all people in France on low-incomes, but those who do the most driving will get first pick. 

You cannot take part if you have already benefitted from the leasing programme in the last three years.

You can test your eligibility and then begin the application process HERE.

How do I apply?

A victim of its own success, the French government announced in mid-February that it was suspending the scheme, one month after subsidising more than double the number of vehicles planned for 2024.

Due to the huge demand, the French government expects to relaunch it at the end of 2024 for 2025.

What about other EV schemes?

This is not the only programme intended to encourage motorists in France to shift toward electric vehicles.

Households can also benefit from the bonus écologique, which gives up to €7,000 in assistance when purchasing an electric vehicle costing less than €47,000. 

READ MORE: EXPLAINED: The financial aid available to buy an electric car in France

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DRIVING

EU countries to extend range of offences foreign drivers can be fined for

The EU has agreed to extend the number of driving offences for which motorists from other member states can be fined for and to make it easier for authorities to chase up the fines and make foreign drivers pay.

Published: 13 May 2024 17:28 CEST
EU countries to extend range of offences foreign drivers can be fined for

In the last voting session of this term, in April, the European Parliament passed new rules to ensure drivers who breach local traffic rules in another EU member state are found and fined.

The cross-border enforcement (CBE) directive was first adopted in 2015 after it was found that non-resident drivers were more likely to commit speeding offences. The European Commission estimated that in 2008, foreign drivers accounted for about 5 percent of road traffic in the EU but committed around 15 percent of speeding offences.

The directive partially improved the situation, but according to the Commission 40 percent of traffic violations committed in other EU countries are still unpunished “because the offender is not identified or because the fine is not enforced”.

In March 2023, the Commission therefore proposed updating existing measures.

New rules extend the type of offences that will trigger assistance from another member state and seek to improve collaboration among national authorities to identify and fine offenders.

The European Parliament and Council agreed in March on the final text of the directive, which is now being formally approved by the two institutions.

André Sobczak, Secretary-General at Eurocities, a group representing European cities in Brussels, said: “While the final outcome of the discussions is not ideal, we are pleased that EU policymakers have at least put the issue of the enforcement of local traffic rules on foreign vehicles on the table. As we approach an election year, I believe such a practical example can demonstrate why a European approach is necessary to address local issues.”

Which traffic offences are covered?

The previous directive covered eight driving misconducts that would require member states to cooperate: speeding, not wearing seat belts, failing to stop at a red traffic light, drink-driving, driving under the effect of drugs, not wearing a helmet (motorcycles / scooters), using a forbidden lane and using a mobile phone or other communication devices while driving.

The Commission proposed to add to the list not keeping a safe distance from the vehicle in front, dangerous overtaking, dangerous parking, crossing one or more solid white lines, driving the wrong way down a one way street, not respecting the rules on “emergency corridors” (a clear lane intended for priority vehicles), and using an overloaded vehicle.

The Parliament and Council agreed to these and added more offences: not giving way to emergency service vehicles, not respecting access restrictions or rules at a rail crossings, as well as hit-and-run offences.

Despite calls from European cities, the new directive does not cover offences related to foreign drivers avoiding congestion charges or low emission zones. In such cases, information about vehicle registration can only be shared among countries with bilateral agreements.

Karen Vancluysen, Secretary General at POLIS, a network of cities and regions working on urban transport, called on the next European Commission to take other local traffic offences, such as breaches of low emission zones, “fully at heart”.

Collaboration among national authorities

For the traffic violations covered by the directive, EU countries have to help each other to find the liable driver. The new directive further clarifies how.

Member states will have to use the European vehicle and driving licence information system (Eucaris) to get the data of the offender.

National authorities will have 11 months from the date of the violation to issue the fine to a vehicle from another EU member state. However, they will not have to resort to agencies or private entities to collect the fine. This was requested by the European Parliament to avoid scams or leaks of personal data.

Authorities in the country of the offender will have to reply to requests from another EU member state within two months.

When the amount of the fine is more than €70, and all options to have it paid have been exhausted, the member state where the violation occurred can ask the country of the offender to take over the collection.

The person concerned will be able to request follow-up documents in a different official EU language.

When will the new rules will be enforced?

Now that the EU Parliament has passed the law, the EU Council has to do the same, although there is no date set for when that will happen. Once the directive is adopted, EU countries will have 30 months to prepare for implementation.

Last year the Commission also proposed a new directive on driving licenses, but negotiations on the final text of this file will only take place after the European elections.

This article has been produced in collaboration with Europe Street news.

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