Low emission zones: An interest-free loan for the purchase of a low-emission hybrid or electric vehicle

Like pension reform, this measure can be highly combustible. The establishment of low emission zones (ZFEs) in several major cities in France will no longer allow certain vehicles to drive in 43 cities with at least 150,000 inhabitants by 2025.

The government’s idea is to ban the most polluting vehicles and see them gradually disappear. In the region, the Nice and Toulon agglomerations are affected by these ZFEs.

To encourage individuals and small businesses to shift to less polluting mobility, the government has created an interest-free loan to help finance a hybrid or electric vehicle.

Whose help?

For now, this is an experiment. Since January 1, this interest-free loan has been implemented for the purchase of an electric or hybrid vehicle in low-emissions areas for mobility and will be tested for two years.

This device is intended for residents and small enterprises residing or working in low-emission areas or in an inter-municipal community on its borders, refers to the decree of April 22, 2022.

At the moment, the cities in question are Paris, Greater Paris, Lyon, Grenoble, Aix-Marseille and Montpellier, NiceRouen, Strasbourg, Toulon and Toulouse.

This interest-free loan is open to people whose tax income does not exceed €14,000 per year. The same for small enterprises with less than 10 employees and whose total turnover or balance sheet does not exceed 2 million euros.

What is the price?

The procedure concerns the purchase of a car for a maximum of €45,000, or €60,000 for a van. The loan can be up to 30 thousand euros, to be repaid in 7 years.

Note that this interest-free loan will be offered by banks that have signed an agreement with the country, and beware that it will concern vehicles with CO2 emissions of less than 50 grams per kilometer. Only electric cars, or some plug-in hybrid vehicles, meet this limit, points out service-public.fr

Also valid in ‘rental’ and ‘retrofitting’ condition

In the case of renting, the loan amount will be up to €10,000 and will be used to finance the first planned rental. The loan repayment period is the lease term.

For people who want to “modify” their car, that is, convert their heat car into an electric car, zero-rate assistance will be possible.

However, for Retrofit, this pertains to a few vehicles, according to players in the sector. They think it will affect about 500 modified vehicles. “The implementation of ZFE-m, which shares the largest number of its objectives, requires the multiplication of cleaner mobility solutions for all. In this sense, retrofitting provides a suitable solution from an environmental point of view.”MP Jean-Luc Vouget (Ennahda) justified the amendment of the 2023 Finance Law at the origin of this measure, which was adopted last October.

Where are the Export Processing Zones located?

ZFEs already concern 11 French cities, the first being Lyon, Grenoble and Paris. Currently, 12 ZFEs have been established, including one in the Nice Côte d’Azur region and in Toulon.

The fact remains that in Nice, if ZFE really existed, there would be no control and in Toulon its implementation was postponed. It will enter into force next April.

It must be submitted in 43 communities with a population of more than 150,000 residents before December 31, 2024.

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