France enables EV access for low-income drivers with €40/month electric car lease

19 December 2023

In a move to make electric vehicles accessible to all, France introduces a "social leasing" program, offering low-income drivers the chance to lease electric cars for as low as $43 per month. President Emmanuel Macron's initiative aims to democratize EV access, making it an affordable reality for those with limited financial means.

Amidst the drive towards sustainability, this innovative program not only encourages the adoption of EVs but also challenges traditional notions of vehicle affordability. The initial proposed target lease payment of $107 per month for low-income drivers has been surpassed, with automakers successfully reducing the cost further, bringing it within reach for many.

Eligible drivers, whose annual income must not exceed $16,500, will be pleased to discover that the government-subsidized lease comes with no down payment, making the prospect of EV ownership even more enticing. The program, set to commence on January 1, is part of Macron's larger goal of producing 1 million electric vehicles by 2027.

The social leasing initiative encourages the use of electric models produced in France and Europe, with a preference for smaller vehicles. Renault Twingo E-Tech, a highly anticipated addition, can be leased at a jaw-dropping $43 per month, covering maintenance, assistance, and free recharging for the initial six months. Other notable models include the Fiat 500e at $96, Peugeot E-208 at $106, and Opel Corsa-e at $101. Citroen e-C3 is also part of the lineup, available for lease at a modest $58 per month.

To qualify for this groundbreaking program, French residents must meet specific criteria, including an annual income cap, minimum annual travel distance, and distance from the workplace. The three-year lease contract, inclusive of insurance and provisions for unforeseen circumstances, offers eligible participants the option to purchase the vehicle at the end of the term.

Despite its potential impact, the initiative faces criticism for its stringent criteria, limiting access to families earning $5,400 below the minimum wage. However, the government asserts that between 4 and 5 million people in France meet the eligibility requirements, emphasizing the program's significant reach. The slow start, with 20,000 leases set for 2024, is expected to ramp up in subsequent years.

But it's not just electric cars - as part of France's broader strategy to reduce greenhouse gas emissions, President Macron allocated a $751 million package to enhance commuter trains, hoping to discourage car usage, electric or otherwise.

Via