Is it more economical to buy or lease the electric Renault 5?

Cash purchases are becoming less popular in favor of long-term rentals and leasing options. But is it worthwhile for the new Renault 5?

Renault offers a financing deal to get its new 100% electric Renault 5 E-Tech on the right track. At 200 euros per month, it sounds particularly appealing, but as usual, you need to read the fine print at the end of the offer and patiently follow the asterisks to know exactly what you will be paying.

Here we have a long-term rental, known as Leasing Longue Durée (LLD). You pay a monthly rent for a specified number of months and at the end of the term, you must return the car. Under a Lease with Purchase Option (LOA), you have the option to buy the car at the end of the set duration, but we don’t think this is the most attractive option. Indeed, after 3 or 4 years, the car is outdated, and you often want to switch to a new model. So, there is a good point for this LLD offer, but you must pay for standard restoration costs and additional kilometers at the end of the contract.

Renault pulls the stunt of the outrageous first rental payment again

The duration is set at 37 months and allows for a maximum of 30,000 km. 10,000 km per year is ample for a city-oriented car, so no problem there. But it gets complicated with the amount of the first rent of… 10,000 euros! Oh yes, that’s a far cry from the 200 euros advertised. We dislike these excessive upfront payments relative to the rents, but what can you do—it’s a fairly standard tactic. Other manufacturers like MG offer deals without upfront payments, but the French don’t have this good habit. Renault reassures us by indicating that this 10,000 euro payment is reduced to 4,500 euros after deducting a 4,000 euro ecological bonus and a 1,500 euro conversion premium. But for that, you must have an old rolling wreck worth less than 1,500 euros to trade in! Mission: Impossible.

If you don’t have such a wreck at hand, you will have to pay 6,000 euros even before taking the wheel of your sleek Renault 5. Sorry, but that’s much too high for a “low-cost” car. Thus, the offer is not as attractive as promised, and for our part, we will pass on it.

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