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Citroën C4 Cactus to Inaugurate Pay-per-Use Leasing Scheme in Europe


Citroën wants to be the first automaker in Europe to offer a “pay-per-use” leasing scheme when the new C4 Cactus crossover is launched. The project is inspired by plans offered by mobile phone operators.

“The pay-per-use scheme will include a monthly lease rate plus an additional payment that will vary according to the kilometers driven in the month,” Citroën CEO Frederic Banzet was quoted as saying by AutoNews Europe.

Citroën hasn’t offered yet additional details for the C4 Cactus leasing scheme, but according to Banzet’s description, the customer would pay a monthly lease rate in the hundreds of euros, plus a monthly fee for a set number of kilometers driven.

If the customer drives more than the set amount, the monthly pay-per-use rate increases. If less kilometers than the set amount are driven, the pay-per-use rate decreases. The monthly lease rate would remain the same in either of the two scenarios.

This leasing project is not currently offered in Europe, with most plans charging customers for additional kilometers at the end of the lease term, which is usually three years. Depending on how many additional kilometers they covered, that payment can be in the thousands of euros. The advantage of the pay-per-use scheme is that the customer would avoid that large payment at the end of the leasing contract.

Besides this plan, Citroën also wants to offer leasing customers a monthly flat rate that is “all inclusive,” covering the car’s financing, insurance and maintenance. This type of program is already offered by some automakers in Europe. Citroën says both plans are aimed at helping customers avoid exceeding their budgets.

By Dan Mihalascu

PHOTO GALLERY

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Written by Lewis Shaw

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