Everything you need to know about electric car leasing for companies

Electric car leasing for companies is growing in popularity, as more and more businesses recognise its economic and environmental benefits. This type of leasing contract, known in France as a lease with purchase option (LOA), gives companies access to high-performing vehicles without bearing the initial investment. It also helps control the total cost of ownership (TCO), with lower maintenance costs and no fuel expenses.

In this article, we look at how leasing works, the conditions for taking out a lease, and why this solution is ideal for optimising the management of your electric fleet.

What is electric car leasing?

This system lets a company rent a vehicle for a set period, usually between 2 and 5 years, in return for fixed monthly payments. At the end of the contract, the company can choose to return the car, renew its fleet or, in some cases, buy the vehicle at its residual value. This option is ideal for companies that want to keep their fleet up to date, control their spending and avoid the risks of vehicle depreciation.

Leasing, or lease with purchase option (LOA), should be distinguished from long-term leasing (LLD). LLD is a flexible formula for renting a vehicle for a given period with no intention of buying it at the end of the contract.

LLD and LOA have points in common, but each also has its own specific features, which we detail in our guide to electric car long-term leasing for companies.

How does leasing work for companies?

The company signs a lease with a leasing company for a set duration and mileage. In return, it pays monthly instalments that cover not only the use of the vehicle but often also related services, such as maintenance, insurance and sometimes even the installation of charging stations.

This lets the company set a precise budget for its electric fleet, avoid unexpected maintenance costs and enjoy the benefits of sustainable mobility. At the end of the contract, it can choose to renew the vehicle to keep up with the latest technology, or return it.

What are the advantages of electric car leasing?

As well as improving cost management and offering greater flexibility, leasing lets many companies benefit from tax incentives, making this solution even more financially attractive. These tax advantages play a key role in companies' decision to lease rather than buy, as they significantly reduce operating costs.

Deductible VAT and other tax advantages for companies

One of the main tax advantages of leasing concerns VAT deductibility. Unlike the purchase of passenger cars, where VAT is generally not recoverable, leasing lets companies deduct VAT on lease payments for electric utility vehicles. This is particularly advantageous for companies that use these vehicles for their business activities.

In addition, lease payments can be recorded as expenses, which reduces the company's taxable base. Spreading the cost through monthly payments over a set period also eases the tax burden, making leasing more attractive than an outright purchase, which ties up the company's capital.

What subsidies and support are available for leasing electric cars for companies?

On top of the VAT-related tax advantages, many companies can benefit from subsidies and financial support for their transition to electric mobility.

In France, schemes such as the Advenir programme provide support for installing charging stations, which is crucial for companies with leased fleets. Some regions and local authorities also offer specific subsidies to encourage the use of electric vehicles in companies, further reducing the overall cost of leasing. Check directly with your region to find out what you are entitled to.

These subsidies can cover up to 50% of the cost of installing charging infrastructure and help reduce the initial investment needed to deploy an electric fleet. By choosing leasing, companies can not only ease their cash flow but also take advantage of the many forms of support available for this energy transition.

How do you integrate leased electric cars into your company fleet?

Integrating leased electric cars into a company fleet is a strategic process that requires careful planning. Leasing makes this transition more accessible by removing the financial constraints of buying, while offering operational flexibility.

However, several elements need to be taken into account to make this integration a success, including managing charging infrastructure, analysing the company's specific needs and training employees. Here are some key steps to ease the transition to an electric fleet.

Managing a leased electric vehicle fleet

Managing a fleet of leased electric vehicles is similar to managing combustion-engine vehicles, but with some adjustments. It is crucial to set up a system for tracking mileage and energy consumption to optimise operating costs and comply with the terms of the lease. Fleet management software can help monitor vehicle performance, remaining range and charging needs in real time.

It is also important to raise awareness and train drivers on how to use electric vehicles optimally. This includes practices such as eco-driving, which can extend vehicle range and reduce energy costs. Thanks to leasing, the company can regularly renew its fleet and benefit from the latest electric technology, while making sure the whole fleet is suited to daily needs.

Installing and managing charging stations for an electric fleet

One of the main challenges of integrating leased electric cars into a company fleet is installing and managing charging stations. To ensure optimal use of the vehicles, sufficient infrastructure is essential, suited to the size of the fleet and employees' travel habits.

Financial support is available for installing these charging stations. Centralised management of charging stations is essential to avoid queues and maximise their use. Home charging solutions can also be considered, giving employees more flexibility.

In short, electric car leasing is a flexible, advantageous solution that lets companies modernise their fleet while combining economic performance, respect for the environment and cost control.

Find out how the Chargemap Business team can help you electrify your vehicle fleet! 🚀