Long-term leasing (LLD) has become the preferred financing method for companies electrifying their fleet. It gives access to recent vehicles with no upfront investment, with a fixed monthly payment that generally covers maintenance and warranties. To make the switch to electric car long-term leasing a success, however, you need to think in terms of total cost, know the tax rules that apply in France in 2026 and organise employee charging from the start.
This guide covers the advantages of electric long-term leasing, its cost, its taxation and the support still available. For an overview of fleet electrification, see also our guide to electric company cars.
Key takeaways
- Long-term leasing lets you electrify a fleet without tying up capital, with predictable payments and simpler renewal.
- 100% electric cars are exempt from the annual company vehicle taxes and benefit from a €30,000 deduction ceiling.
- Since February 2025, the benefit in kind for an eco-scored electric vehicle qualifies for a 70% allowance.
- The ecological bonus is no longer available to companies: CEE bonuses have become the main purchase support.
- The total cost of electric long-term leasing also depends on charging: on-site charging stations, home charging and a charging card for travel.
Why long-term leasing suits an electric fleet
Long-term leasing gives companies a simple way to electrify their fleet without heavy purchase costs. For fleet managers, it is also a way to optimise TCO, limit resale risks and speed up the company's CSR goals.
Battery technology is evolving quickly: with long-term leasing, the risk of vehicle depreciation is borne by the leasing company, not by the company itself. This formula has several advantages:
- controlled budget: a fixed monthly payment, often including maintenance and warranties;
- no resale to manage: the vehicle is returned at the end of the contract;
- simpler renewal: recent vehicles for employees, with the latest battery technology;
- gradual electrification: the fleet adapts to needs, contract by contract;
- preserved cash flow: capital remains available for other investments;
- lighter management: less administrative work for fleet and HR teams.
Long-term leasing, lease with purchase option or purchase: which financing for an electric fleet?
The main difference between long-term leasing (LLD) and a lease with purchase option (LOA) lies in the end of the contract: with LLD, the vehicle is returned to the leasing company; with LOA, the company can buy it at a price set in advance. A purchase, on the other hand, adds the vehicle to the company's assets from the outset.
| Criterion | Long-term leasing | Lease with purchase option | Purchase |
|---|---|---|---|
| Initial investment | None (possible higher first payment) | None (possible higher first payment) | Vehicle price |
| Vehicle ownership | Leasing company | Leasing company, purchase option at the end of the contract | Company |
| Depreciation risk | Borne by the leasing company | Borne by the company if it exercises the option | Borne by the company |
| Maintenance and warranties | Often included | Depending on the contract | Paid by the company |
| End of contract | Return and renewal | Return or purchase | Resale to organise |
| Accounting treatment | Payments recorded as expenses | Payments recorded as expenses | Depreciation |
For an electric fleet, long-term leasing generally offers the best balance: vehicles can be renewed at each term without managing resale. A lease with purchase option may suit a company that wants to keep some vehicles in the long run; a purchase suits a company with available cash that keeps its vehicles for a long time.
What is the total cost of a leased electric car?
The monthly payment depends on the model, contract length, annual mileage and services included. But for a company, what matters most is the total cost of ownership (TCO) rather than the monthly payment.
| Item | What to take into account |
|---|---|
| Lease payment | Duration, mileage, services included (maintenance, assistance, tyres, insurance) |
| Energy | Charging on site, at home and at public charging stations: generally cheaper than fuel |
| Maintenance | Lower than for a combustion-engine vehicle (fewer wear parts), often included in the payment |
| Taxation | Exemption from annual taxes, deductibility of payments up to the ceiling, reduced benefit in kind |
| Charging infrastructure | Installation of charging stations on site and at home, monitoring subscription |
| Management | Tracking charging expenses and reimbursing employees |
The residual value of electric vehicles, which the leasing company factors into the payment, varies by model: comparing several offers remains essential. When all these items are included, the TCO of a leased electric car is often lower than that of an equivalent combustion-engine vehicle.
Taxation of electric car long-term leasing in France in 2026
Exemption from annual company vehicle taxes
Since 2022, the former company vehicle tax (TVS) has been replaced by two annual taxes on vehicles used for business purposes: one on CO2 emissions, the other on air pollutants. 100% electric cars are exempt from both.
Deduction of lease payments
Long-term lease payments are deductible from taxable profit, within a limit: the part of the payment corresponding to depreciation of the vehicle above a ceiling must be added back. For a vehicle emitting less than 20 g CO2/km, which is the case for an electric car, this ceiling is €30,000, compared with €9,900 to €18,300 for a combustion-engine vehicle depending on its emissions (€20,300 for a plug-in hybrid). The leasing company provides the information needed for the calculation.
VAT
For a passenger car, VAT on lease payments cannot be recovered, whatever the powertrain. However, VAT on the electricity used to charge a 100% electric car is deductible.
Employees' benefit in kind
When a company car is used privately, it is a benefit in kind. For an electric vehicle made available between 1 February 2025 and 31 December 2027 that meets the eco-score condition, the benefit in kind qualifies for a 70% allowance, up to €4,641.60 per year in 2026 under the flat-rate method (50% up to €2,026.30 under the actual-cost method). The cost of electricity for charging at company charging stations is not included in its calculation.
What support is available for electric car long-term leasing in 2026?
The ecological bonus and the conversion bonus are no longer available to companies. Bonuses linked to energy savings certificates (CEE) have become the main support for buying or leasing (24 months minimum) new electric vehicles; they generally have to be requested before signing the contract.
On the charging side, several Advenir programme categories reserved for companies ended on 31 December 2025. Details of the schemes still available are set out in our article on grants for installing charging stations at companies.
Organising charging for leased vehicles
The success of a leased electric fleet depends on charging. Companies need to take into account employees' usage, available infrastructure and cost tracking.
- On-site charging stations: assess the number of charging points needed, their power and their location. To find out more, see our complete guide to company charging stations.
- Home charging: equip employees with a charging station or a connected cable and set up reliable reimbursement of home charging.
- Charging on the road: provide a professional EV charging card to access public charging stations and centralise expenses.
- Tracking and monitoring: bring together charging data (on site, at home, public charging stations) to manage costs and detect anomalies, with a workplace charging solution.
Supporting employees
The success of an electric fleet also depends on employee adoption. A few actions make the switch easier:
- clarify usage: range, types of charging, best practices;
- simplify charging: business charging card, on-site charging stations, home solution;
- provide support: assistance in case of charging difficulties;
- harmonise the rules: shared usage policy and charging processes.
Electric long-term leasing, CSR and fleet obligations
Electric long-term leasing is part of the company's CSR approach: it reduces the fleet's carbon footprint and showcases the company's commitment to employees, customers and partners.
It also helps meet regulatory obligations. Since 2025, in France, companies with more than 100 light vehicles have been subject to an incentive tax when the share of low-emission vehicles among those added to the fleet over the past three years remains below the annual target (18% in 2026). Details are set out in our article on company charging station obligations.
Movivolt, the electric long-term leasing specialist
For companies that want to roll out a leased electric fleet quickly, Movivolt offers a range dedicated entirely to electric vehicles (cars and vans), covering all brands and all professional needs.
Charge your leased vehicles anywhere in France
With the Chargemap Business charging card, your employees charge at public charging stations and you centralise your fleet's expenses.
.webp)