MG, a subsidiary of Chinese giant SAIC, recently made a surprising breakthrough in the electric market in France with its MG4 model. In response to Emmanuel Macron’s promise to make the electric car accessible to everyone at 100 euros per month, MG has offered an even bolder offer: leasing at 99 euros per month for the MG4. With this bold move, the brand teased the President with a hard-hitting slogan: “Mr. President, we keep your promises”. Let’s take a closer look at this offer.
For years, the electric car has been presented as one of the key solutions to combat global warming. In France, Emmanuel Macron has promised to make electric mobility accessible to all with a bold proposal: social leasing allowing you to rent an electric car for only 100 euros per month. While the government is struggling to fulfill this promise, the car manufacturer MG, a subsidiary of the Chinese group SAIC, seems to have gotten ahead of it.
“Mr. President, we keep your promises”
The MG4, the manufacturer’s flagship electric model, is now available for leasing for 99 euros per month.
With a teasing slogan, “ Mr President, we keep your promises », MG affirms its ambition on the French electric market.
See the test
This offer concerns the Standard version of the MG4. It is equipped with a 170 hp engine and a 51 kWh battery offering a combined WLTP range of 350 km.
In terms of features, the car has a driving assistant with lane keeping, reversing radars, automatic air conditioning and a 10.25-inch screen compatible with CarPlay and Android Auto, and offers V2L (Vehicle-to-Load). On paper, this car therefore seems quite suitable for everyday needs.
The conditions to be respected
But as always, there are conditions to be met to take advantage of this tempting offer. The long-term rental contract (LLD) is valid for a period of 24 months and is limited to 20,000 km, or 10,000 km per year. After two years, the vehicle must be returned and restoration costs may be charged.
The monthly rent of 99 euros is accompanied by a first rent increased by 9,500 euros, supported by aid for purchase. To benefit from it, you must therefore be eligible for the ecological bonus of 7,000 euros and the conversion bonus of 2,500 euros. This aid is conditional on the reference tax income and the possession of an old vehicle to be scrapped (a diesel vehicle put into circulation before 2011 or petrol before 2006).
This offer from MG is shaking up the electric car market in France. It seems to materialize a government promise that had hitherto remained at the project stage, and shows that the financial accessibility of electric cars can become a reality. However, the strict eligibility conditions could limit its impact on the general public. But that’s not all.
The less rosy aspects
Of course, despite the apparent attractiveness of this offer, it is essential to mention some less glamorous aspects.
First, although the MG4 offers an interesting quality-price ratio, the choice of the LLD raises questions. Indeed, by opting for this formula, the user potentially “waste” his ecological bonus of 7,000 euros and the premium for the conversion of his old vehicle, because after two years, he has nothing left. In other words, these financial benefits are entirely absorbed by the LLD and do not directly benefit the user.
Moreover, this offer seems to particularly target low-income households, which are precisely those who most need to maximize the use of their vehicle to reduce their total cost of ownership (Total Cost of Ownership, TCO). However, by opting for an LLD, these households could not reduce their TCO as effectively as by buying a vehicle.
LLD or LOA: advantages, disadvantages and differences between these car rental systems
These points perfectly illustrate the dilemma faced by low-income drivers wishing to go electric: on the one hand, they are encouraged to do so by attractive financial incentives, on the other hand, they have to navigate a landscape complex of offers and constraints which can sometimes be unfavorable to them. This once again highlights the need for a more comprehensive and inclusive approach to the transition to electric mobility.