Buy or Lease an Electric Car: How to Make the Right Choice in 2025?

Electric cars account for 18.2% of new vehicle sales in France. Electric vehicles are now a staple in the automotive landscape. But one question keeps coming up: is it better to buy or lease an electric car? Between outright purchase, financing, LOA (Lease with Purchase Option), and LLD (Long-Term Lease), there are multiple options. With monthly payments starting at €95 through social leasing and subsidies of up to €10,000, here is our guide to help you decide.

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Quick Answer Based on Your Profile

Buy if: you drive more than 20,000 km/year, keep your cars for more than 5 years, and have cash or a good credit rate. Purchasing becomes cost-effective from the 4th year onward.

Choose LOA if: you want to become an owner with lower monthly payments, drive less than 15,000 km/year, and want to test electric before making a long-term commitment.

Opt for LLD if: you change vehicles every 3-4 years, prefer a fixed all-inclusive monthly budget, and want to avoid resale hassles.

This decision will impact your budget for several years.

Understanding the Three Financing Options

Purchase: Owning Your Electric Vehicle

Purchasing remains the traditional solution, either with cash if you have the funds or through financing. Current rates for electric cars range between 1.5% and 2.5% APR, depending on your profile and the term (48 to 84 months).

Advantages of Purchasing

Purchasing offers complete freedom of use with unlimited mileage, which is particularly appealing for high-mileage drivers. You build equity with a resale value, even if it decreases over time. Maximum eligibility for government subsidies, including the CEE bonus of up to €4,240 and the conversion bonus of up to €6,000, can significantly reduce your initial investment. Over the long term, the total cost remains the lowest after 5 years of use. Finally, you have the freedom to choose your insurance and adjust your coverage according to your needs and budget.

Disadvantages of Purchasing

The initial investment remains substantial, ranging from €20,000 to €50,000 depending on the vehicle. Depreciation is significant, especially in the first year, with a loss of 30 to 40% of the value, which can deter some buyers. Maintenance is entirely your responsibility after the manufacturer's warranty period. This option also ties up a significant amount of capital or commits you to debt for several years. There is also the risk of technological obsolescence, as new models regularly offer greater range and more advanced technology.

LOA: Lease with Purchase Option

LOA allows you to lease a vehicle with the option to purchase it at the end of the contract. The purchase option, set from the start, typically represents 10 to 30% of the initial price.

Advantages of LOA

This option is appealing due to its lower monthly payments, generally 20 to 30% less than a traditional loan. The final purchase price is guaranteed from the outset, protecting you against inflation or fluctuations in the used car market. The ability to transfer the contract mid-term offers some flexibility if your situation changes. The manufacturer's warranty covers the entire duration of the contract, eliminating unexpected mechanical issues. For professionals, lease payments are tax-deductible, optimizing the company's cash flow.

Disadvantages of LOA

The limited mileage requires strict discipline, with penalties of €0.08 to €0.15 per additional kilometer, which can add up quickly. Mandatory comprehensive insurance increases the monthly budget by €20 to €30 compared to a third-party policy. Early termination is particularly expensive if your situation changes. If you return the vehicle, reconditioning fees can be unpleasant surprises for even minor scratches. The final purchase option often exceeds the vehicle's actual market value.

LLD: Long-Term Lease Without Purchase Option

LLD is a straightforward lease, with the vehicle systematically returned at the end of the contract.

Advantages of LLD

Monthly payments are the lowest on the market, generally 15 to 20% lower than LOA. The budget is fully controlled, with maintenance usually included in the contract, eliminating surprises. There is no risk of depreciation or resale concerns, which significantly simplifies management. Renewing every 2 to 4 years allows you to always benefit from the latest technological innovations. Access without a significant initial down payment makes it easier to switch to electric for tight budgets.

Disadvantages of LLD

This option does not allow you to build equity, as monthly payments are lost in the long run. Mileage is strictly controlled, with significant penalties for exceeding the limit. The vehicle's condition is thoroughly checked upon return, with any abnormal wear and tear being charged. Early termination can cost up to 80% of the remaining lease payments, making any change in situation problematic. Comprehensive insurance is mandatory without the possibility of negotiation, increasing the overall monthly cost.

Comparison Table: Key Figures

The following figures are based on the Renault Mégane E-Tech priced at €39,500 and driven 12,000 km/year.

Criteria	Purchase	LOA	LLD
Initial Down Payment	0 to 20%	0 to 15%	0 to 10%
Typical Monthly Payment*	€650/60 months	€450/48 months	€380/48 months
Annual Mileage	Unlimited	10-15,000 km	10-15,000 km
Commitment Duration	None	24-72 months	24-60 months
Ownership	Immediate	Final Option	Never
Maintenance	Your Responsibility	Variable	Included
Insurance	Free Choice	Comprehensive	Comprehensive
Final Value	Market Value	10-30% of Price	None
Total Cost Over 4 Years	€31,200	€25,600 + option	€18,240
Tax Deduction for Professionals	Depreciation	Lease Payments	Lease Payments
Excess Mileage	Not Applicable	€0.08-0.15/km	€0.08-0.15/km

*Simulation based on Renault Mégane E-Tech €39,500, 12,000 km/year

Criteria to Guide Your Decision

Your Annual Mileage Determines Everything

The number of kilometers driven each year is THE fundamental criterion. Below 10,000 km/year, LLD is the natural choice: standard packages fully cover your needs. Between 10,000 and 20,000 km, LOA becomes relevant with adjustable packages and the security of being able to purchase the vehicle. Beyond 20,000 km, purchasing becomes essential: excess mileage penalties would make leasing prohibitively expensive.

Your Vehicle Retention Period

For less than 3 years, LLD offers the best cost/simplicity ratio. Between 3 and 5 years, LOA and LLD are equivalent depending on your desire for ownership. Beyond 5 years, purchasing becomes systematically more economical, with potential savings of several thousand euros. The break-even point generally occurs in the 4th year of ownership.

Your Financial and Tax Situation

With available cash, outright purchase remains the most economical in the long term. You save on interest and negotiate better with the dealer. Tight monthly budget? LLD perfectly smooths out expenses with predictable monthly payments including maintenance. A good credit rate (less than 3%) can make financed purchasing more attractive than leasing over 5 years.

2025 Subsidies That Change the Equation

CEE Bonus: Up to €4,240 in Immediate Reduction

Since July 2025, Energy Savings Certificates have replaced the ecological bonus:

€4,240 for low-income households (RFR < €16,300/part)
€4,240 for deciles 6-8 depending on household composition
€3,100 for other households
Direct application at the dealership
Compatible with purchase and LOA (not LLD)

Available from September 30, 2025, for low-income households:

Fiat Grande Panda: €95/month
Citroën ë-C3: €100/month
Dacia Spring: €100/month
Renault 5 E-Tech: €120/month

Conversion Bonus: Up to €6,000 in Additional Subsidies

For scrapping an old polluting vehicle. Can be combined with the CEE bonus for purchase or LOA. Conditions depend on your tax situation and the vehicle being replaced.

Our Recommendation: Which Solution to Choose Based on Your Situation?

Eligible for social leasing? It's the best offer on the market. Go for it.
High-mileage driver (>20,000 km/year)? Purchasing is essential, ideally with 48-60 month financing.
Love new cars? LLD guarantees a recent vehicle every 3 years without hassle.
Undecided about electric? A 36-month LOA allows you to test before making a long-term commitment.
Cash available? Outright purchase remains the most economical over 5 years (saving €3,000 to €5,000 vs leasing).
Tight budget? LLD offers the lowest monthly payments with a fully controlled budget.

The most important thing is not the chosen option but making the switch to electric. With an average of €1,200/year in fuel savings and 30% less maintenance, your electric vehicle will be cost-effective regardless of the option chosen. The positive environmental impact remains the same, whether you own or lease your zero-emission vehicle.

Simplified Charging with Electra

Whether you own or lease your electric vehicle, access to a reliable fast-charging station network remains essential. At Electra, our 400 ultra-fast stations in France allow you to recover 80% of your range in 20 minutes.

Our transparent rates start at €0.29/kWh in France with a subscription. Check out our station map and detailed rates to optimize your charging budget, whatever your financing option.