EU Social Leasing Scheme: Socialists push for a legislative initiative

During discussions, Eurofinas DG Richard Knubben highlighted the importance of ensuring that any future scheme takes into account the existing regulatory framework, including CCDII, and the key role of the second-hand market in supporting affordability, consumer choice, and the sustainable transition towards electric mobility. The Federation will continue engaging with policymakers by developing a practical framework for how social leasing could operate effectively at EU level.  

The potential implementation of an EU Social Leasing Scheme is increasingly gaining attention, as political discussions intensify around how access to affordable zero-emission mobility could be facilitated for low-income households.   

On 21 April, the Socialists and Democrats (S&D) Group in the European Parliament organised an event on social leasing, to present their strategy for a EU-wide scheme. The S&D proposal aims to finance 10 million vehicles through Social Leasing between 2027 and 2032, targeting low-income families, particularly those living in rural areas. Social leasing in this context is defined as providing small European BEVs to vehicles to low(er) income using a variety of a B2C financing solutions, covering the full range from to transfer of ownership to option to purchase.   

During the event, several stakeholders contributed to the discussion, including Richard Knubben on behalf of Eurofinas and Leaseurope . Building on previous exchanges, he reiterated the importance of ensuring that any future social leasing scheme considers the existing regulatory framework governing consumer finance solutions including but not limited to the revised Consumer Credit Directive (EU) 2023/2225 (CCD2), which strengthens requirements related to creditworthiness assessments, transparency, and the prevention of over-indebtedness. These obligations apply regardless of whether leasing activities are supported through public schemes.

He also underlined the importance of considering the role of the second-hand vehicle market in any future social leasing framework. Expanding access to used vehicles, including in the electric vehicle segment, would be essential to ensure affordability, consumer choice, and the overall scalability of such schemes. Restricting social leasing exclusively to new vehicles could limit accessibility and increase costs, while a well-functioning second-hand market can help manage residual value risks and support a more gradual and sustainable transition towards zero-emission mobility.

Looking ahead, Eurofinas and Leaseurope will proactively contribute to the policy debate by developing a practical proposal outlining how social leasing could function effectively at EU level. This proposal will provide a basis for future discussions with policymakers and stakeholders as consideration of a potential European Social Leasing framework progresses.