all about the zero rate loan

A decree of 24 April 2022 complements state aid for the purchase of an electric vehicle. A way to make the transition to greener energies a little more accessible.

As the ecological bonus, this new device is not open to everyone. It’s quite the opposite. The conditions to be fulfilled to benefit from this additional impulse are numerous and limiting. We take stock of the matter.

Which vehicle is eligible for the zero rate loan?

Not all vehicles are eligible for the zero rate loan. In order to benefit from it, you must resort to a passenger car or van weighing less than 2.6 tonnes.

Above all, the vehicle must not emit more than 50 g/km of CO2. In practice, this limits the device to hybrid and electric vehicles.

As with the eco bonus, more expensive vehicles are not eligible. To access the zero rate loan, you must select a car for less than 45,000 euros or a commercial vehicle of less than 60,000 euros before deducting the ecological bonus. Roughly speaking, this corresponds to city cars and base models.

In summary, the affected vehicles are:

  • hybrid and electric vehicles
  • private cars below 45,000 euros (before eco bonus)
  • utility vehicles under 2.6 tonnes less than 60,000 euros (before eco bonus)

Who can take advantage of the zero rate loan?

The conditions for accessing the zero-rate loan also depend on who wants to take advantage of it. Companies cannot access it as this device is reserved for natural or legal persons under the status of micro-enterprise.

There is also a geographic limitation. To qualify for PTZ you must live or work in one of the 10 cities that have implemented a Low Emission Zone : Paris and the metropolis of Greater Paris, Toulouse, Strasbourg, Rouen-Normandy, Aix-Marseille-Provence, Nice-Côte d’Azur, Montpellier-Méditerranée, Toulon-Porvence-Méditerranée, Métropole de Lyon, Grenoble-Alpes-Métropole.

Finally, as it is aimed at the most modest families, the zero-rate loan is also affordable. on income conditions. Thus, the reference taxable profit must be less than or equal to 14,000 euros for year n-1.

In summary, people eligible for PTZ are:

  • individuals and legal entities in micro-enterprises
  • living in one of the 10 metropolises of the ZFE
  • with a reference tax income of less than or equal to 14,000 euros

What are the conditions for getting the zero-rate loan on an electric vehicle?

In addition to the framework explained above, there are also other conditions for obtaining a zero-rate loan.

If the vehicle price limit for individuals is 45,000 euros, the loan can only finance the purchase up to 30,000 euros. And we insist on the act of purchase.

Because if you opt for an LOA (lease with option to buy) or an LLD (long-term lease), the loan is limited to 10,000 euros and you must subscribe to a lease for a minimum period of two years.

The loan repayment period cannot exceed 84 months (7 years). And in the case of LOA or LLD, the assignment or termination of the lease agreement implies full reimbursement of the remaining principal due.

In summary, the loan conditions are as follows:

  • the loan is limited to 30,000 euros for purchase and 10,000 for rent
  • the lease must be for a minimum period of 2 years
  • loan duration cannot exceed 7 years
  • in the event of termination of the lease or assignment, the loan must be repaid in full immediately

When will the zero rate loan be implemented?

Although the decree was enacted on April 24, 2022, the implementation of the system will not be immediate. The decree indicates that the loan rate zero for electric/hybrid vehicles will be set up as of January 1, 2023 as an experiment for a limited period of 2 years.

In the meantime, other measures must be implemented. Emmanuel Macron, for example, promised during his campaign that he would work with industry players to offer an electric vehicle for less than €100 a month.

At the same time, other devices are subject to change. The ecological bonus, for example, will be reviewed from July 2022, and goes against this democratization trend.

Indeed, from that date, the ecological bonus amount will be reduced. Private individuals, for example, will see this bonus drop to €5,000 when buying a new electric vehicle worth less than €45,000, compared to €6,000 previously.

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