A “clean vehicle” microcredit launched by the government

After the launch of the conversion bonus and the Ecological Bonus, the Government is offering new assistance for low-income households: microcredit. This article will help you understand what this new assistance consists of and the terms and conditions for benefiting from it. Enjoy reading!

What is this microcredit?

Launched on March 17, 2021, microcredit is aimed at low-income households wishing to acquire a clean vehicle. The objective is to offer households that usually have difficulty accessing so-called "classic" bank loans a new solution to acquire a less polluting vehicle that is less expensive in terms of maintenance costs. The amount varies depending on your income and can reach 5,000 euros, a great boost to acquire a low-polluting vehicle. Similarly, its repayment can be spread over a maximum period of 5 years, which is also very interesting. The amount subscribed is 50% guaranteed by the State. Read also: Business: learning English is essential in the business world

What are the terms and conditions for benefiting from it?

• Buy, rent on a long-term lease (LLD) or rent on a lease with option to purchase (LOA) a new or used low-polluting vehicle. If you opt for LLD, various companies will be able to offer you suitable solutions such as Les Formules, the long-term rental specialist or Loc Eco (short-term vehicle and LLD rental company)
• Be able to repay without being able to access the credits distributed by the so-called "classic" banking networks or be in a fragile professional situation
• Have a reference tax income per share of less than 6,300 euros

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These conditions will be assessed by the support service that will help you prepare your file.

How to prepare the “clean vehicles” microcredit file?

Contact a social support service such as the Federation of Rural Families, Catholic Relief, the Red Cross, Restaurants du Coeur, Unaf (National Union of Family Associations) or Cresus (Regional Chambers of Overindebtedness Social) for example. These organizations will be able to help you with the various administrative procedures to prepare your file and present it to an approved bank. Other information, and not least, this aid can be combined with the Conversion Bonus of up to 5,000 euros, the Ecological Bonus of up to 7,000 euros and local aid (if applicable in your region). For example, in the Greater Paris metropolitan area, you can benefit from up to 19,000 euros in aid to which is added the 5,000 euros from the “clean vehicles” microcredit for the purchase of a plug-in hybrid or electric vehicle. .

To give you a concrete example, imagine the following situation.

Carole owns a 2005 Renault Clio that she is scrapping. She wants to purchase a second-hand Peugeot 208 with thermal engine (petrol) for 8,500 euros. His situation allows him to benefit from the Conversion Bonus in the amount of 3,000 euros (i.e. 35% of the total cost of acquisition of the new vehicle). Carole can also benefit from a microcredit amounting to 5,000 euros (i.e. 59% of the total cost of acquiring the new vehicle). She will therefore have to pay only 500 euros to acquire her new vehicle and repay her loan over a predefined period. Read also: What are the pillars of management in the company? Training is key

Which “clean vehicles” are concerned?

To benefit from microcredit, you are required to buy or rent a so-called “own” vehicle. There are several types:

• Vans or passenger cars with a Crit’Air 0. These vehicles can be both electric and plug-in hybrids
• Thermal vans or private cars with a Crit’Air 1. These vehicles are gasoline vehicles registered since January 1, 2011 with a CO2 emission rate of less than or equal to 132g/km1
• Vehicles with 2 or 3 wheels as well as quadricycles with electric motors

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Currently, electric and hybrid vehicles are all the rage! A brief overview of this trend which is growing more and more in France…

Electric and plug-in hybrid vehicles saw their sales exposed in 2020 (+180% between 2019 and 2020).

With more and more charging points present across the country, France has become the 2nd European country where the population buys 100% electric vehicle models. Likewise, France became, in 2020, the 3rd European country where the population purchases plug-in hybrid vehicle models. The most registered electric passenger vehicle models were the Renault Zoé, the Peugeot e-208 and the Tesla Model 3. Concerning plug-in hybrid vehicles, the most registered models were the Peugeot 3008, the Renault Captur and the DS 7 Crossback. It remains to be seen whether these models will still be the most popular in 2021. For sure, in 2021, the aid granted is maintained, which should reassure those undecided about investing or renting a “clean” vehicle. The Government plans to increase the market share of electric and rechargeable hybrid vehicles by 5.5 points for the year 2021. Likewise, the obstacles linked to charging points should decrease given an increase in the number of these terminals present on the market. territory (objective 100,000 charging stations by the end of 2021). Another trend: long-term rental (LLD). Complementary to the first trend observed due to interdependence due to the methods of access to Government aid, the LLD is a preferred solution. In 2020, LLD was able to conquer more individuals and professionals since it represents 26.9% of the overall market compared to 24.6% in 2019. With regard more particularly to the corporate market, LLD represents 59, 6% of the market (+1.2% compared to 2019). It is therefore the most popular solution among professionals. Read also: How to choose a company specializing in cleaning in France after the COVID 19 period?

Today, after the abandonment of the Cazeneuve circular prohibiting the practice of LLD by the public sectors, the market is opening up to new horizons.

Are you planning to change your vehicle for a “clean” vehicle? Find out about the aid to which you are entitled and embark on the adventure to pollute less!