Auto Finance Sponsored by Auto Finance News ACEA urges EU states to back social leasing of EVs Published: 30th April 2025 Share In a move aimed at accelerating Europe’s transition to clean transport, the European Automobile Manufacturers’ Association (ACEA) has released a new paper outlining seven key recommendations to guide the implementation of social leasing schemes for electric vehicles (EVs) across EU member states. Titled Recommendations on Social Leasing of Electric Vehicles, the paper argues that social leasing could be a transformative tool in making EVs more accessible to low-income households, vulnerable individuals, and microenterprises. The proposals come as the EU intensifies efforts to decarbonise road transport and ensure that climate action delivers social benefits. Expanding access while promoting equity Social leasing schemes work by reducing the monthly cost of EV use through public support, helping people who might not be able to afford high upfront vehicle prices. ACEA’s recommendations highlight how such schemes can foster both environmental progress and social equity, especially for financially vulnerable groups. Among the seven recommendations, ACEA calls on member states to: Prioritise support for vulnerable individuals, households, and microenterprises Include second-hand EVs in social leasing frameworks to widen access Support a portion of monthly lease costs, rather than imposing broad price caps Minimise administrative burdens to ensure easy and equitable participation Ensure sustainable, long-term funding, going beyond the EU’s Social Climate Fund ACEA also urges governments to incorporate social leasing into national social climate plans and broader EV deployment strategies. Support for small businesses and the second-hand market In a notable shift from traditional EV subsidy models, ACEA proposes extending social leasing schemes to small and medium-sized businesses, especially microenterprises. These entities often face financial hurdles in transitioning to cleaner vehicles, particularly for commercial fleets. Additionally, by integrating second-hand EVs into leasing offers, governments could significantly lower entry costs and help build a circular EV economy that benefits lower-income users. Funding beyond the Social Climate Fund While acknowledging the importance of the EU’s Social Climate Fund, ACEA stresses the need for diversified funding sources to ensure the long-term success of social leasing. Over-reliance on a single funding stream could limit the scalability of programmes or burden national budgets, the paper cautions. A tool for climate and social progress With transport poverty affecting millions across Europe, ACEA sees social leasing as a core policy instrument—not a peripheral measure. By ensuring broad access to EVs, these schemes can directly support climate targets while delivering tangible benefits to disadvantaged groups. “Social leasing is a positive tool to address transport poverty and should be a pillar of a broader strategy aimed at creating a robust market for zero-emission vehicles, ensuring that the benefits of clean mobility reach all members of society, particularly the most vulnerable,” the paper concludes. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsUK businesses shift to ‘usership’ model for fleet mobility, says Europcar Corporate Member NewsAutotrader tops 1m leads as Buying Signals platform evolves NewsAFIA pledges higher industry standards following ASIC motor finance review Auto Finance