A recent car 150 euros per month: BNP Paribas presented on Wednesday a rental offer with option to buy with low monthly payments over 10 years, designed mainly for low-income households who have to change cars to access low-emission zones (ZFE).
The dealers will offer, in partnership with the bank, new cars or recent second-hand cars, eligible for the Crit’Air 1 or 0 sticker, with a low monthly payment but over a very long period. Maintenance is included, but not insurance.
According to the principle of rental with option to purchase (LOA), which already represents one in five consumer loans in France, the car belongs to the bank for the duration of the contract, at the end of which the customer can buy it back.
285euros per month for a Zo
Without initial contribution, a 2019 Renault Clio gasoline is accessible from 135 euros over 120 months, for example, and a Renault Zo (electric) 285 euros per month. At the end of the contract, the buyback option will represent only 1% of the price of the vehicle, assures the BNP.
The implementation of the ZFE will affect 50% of French households, who will have to change cars, and besides more and more expensive, underlined Christophe Michali, head of the auto mobility department at BNP Paribas personal finance. The idea is to encourage low-income households to buy a car they don’t think they can afford, said Christophe Michali. A ten-year offer makes it possible to meet household budget constraints and support them in the energy transition.
The conversion bonus and the generous purchase bonuses help the bank lower the initial price of the vehicle. For the bank, as for the concessionaire, it is an additional business, specified Christophe Michali. Today, these households buy their car on Leboncoin, finance it with a microcredit. Credit institutions have increased their offers for the purchase of less polluting vehicles, such as the Banque Populaire, which offers a seven-year loan.
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The government is also preparing an electric vehicle offer at 100 euros per month, which should instead go through leasing with a contribution guaranteed by the State, and would be reserved for the most modest households. Manufacturers such as Renault, Hyundai, Fiat or the Chinese MG have recently launched long-term rental offers that could fit into this measure.
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