Low-cost Leases Can Offset The High Cost Of Electric Vehicles

Electric vehicles are the way of the future. They are clean, entertaining to drive, and inexpensive to purchase. We will all be driving electric vehicles one day. And yet, it is undeniable that today EVs are unaffordable for many people, thus ‘normal people’ continue to drive vehicles that are polluting, expensive to refuel, and more stigmatized. This is not socially nor politically acceptable.

Electric cars accounted for 16% of French sales in February, helped by demand for models such as the Dacia Spring, which was the country’s No. 10-seller with a volume of 4,783 units.

Thanks to General Motors (GM), who established the notion of auto loans and consumer credit, that eliminated the high upfront car price, and thus the number of individuals who could afford vehicles was vastly increased.

The French and their social leasing plan is a step in that direction. Last year they first announced plans to subsidize EV leasing, which would make electric cars available for low-income households for as little as €100 per month.

This is not only feasible, but it would also be inexpensive. Models will be simple to guarantee cost. Car prices may be reduced by 20% to 30% by accounting for decreased advertising and distribution expenses for manufacturers, as well as less frills and performance costs.

The estimated €800 million annual cost to the government may be readily covered by progressively eliminating present subsidies that favor wealthy drivers.

When combined with inexpensive, clean power, a concerted effort to provide charging to low-income communities, and social housing, social leasing of electric vehicles has the potential to become the poster child for climate action done correctly.

Reference- Clean Technica, EV Reporter, Inside EVs, Electrek, Automotive News Europe, The Drive