Weakening social leasing but renewed in 2025

The Social Leasing program returns for its second season, but it is almost certain that its budget will not be expanded.

France’s Minister Delegate for Transport, François Durovray, confirmed to our colleagues at AFP that the Social Leasing initiative will be renewed for 2025.

“It is a scheme that will be maintained, with its framework currently under discussion, confirmed the recently appointed minister. It needs to target the right audiences, particularly the most modest French households.”

The conditions remain to be clarified, but it is already certain that its scope will not be widened and may even be reduced. The government has decisively cut, and reduced the funding allocated to promoting electric mobility from 1.5 billion to 1 billion euros for 2025. To achieve this reduction, there is no doubt that the assistance for purchasing a new electric car will be decreased next year. Additionally, Social Leasing is likely to bear the brunt of this fiscal austerity.

Promised during Emmanuel Macron’s campaign, this scheme aimed at the most modest households is designed to give them access to electric mobility. It involves essentially a leasing with a buyout option (LOA) for less than 100 euros per month for small urban vehicles and 150 euros per month for family-sized cars. The government finances an initial contribution of 13,000 euros. Priority is given initially to individuals who can demonstrate a professional activity requiring regular use of a vehicle for at least 8,000 kilometers per year or a daily commute of at least 15 km to their workplace without a direct public transport alternative. In 2024, the taxpayer’s reference income per share should not exceed 15,400 euros to qualify for this scheme, which has enabled over 50,000 households to access an electric car for about 100 euros per month.

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