What's changing for LOA leases — towards consumer credit law

By Vincent Clarenc, Founder of Compar'Car

In seven weeks, on 20 November 2026, a discreet but consequential reform comes into force: car LOA leases (lease with purchase option) will move under the legal framework of consumer credit. Until now treated as a simple rental, they will be regulated as a loan — with the protections that implies for the buyer.

What actually changes

According to Meilleurtaux and Empruntis, four changes take effect on 20 November 2026. First, the APR (TAEG) becomes mandatory on every LOA offer, with a displayed comparison between the total cost of the lease and the vehicle's base price — until now, only the monthly payment was systematically highlighted. Second, a 14-day withdrawal period applies, as for any consumer credit. Early buyout of the vehicle becomes a right that can be exercised at any time, rather than an option left to the lessor's discretion. Finally, a dedicated usury rate for LOA will be set, capping the maximum cost a financing body can charge.

Why now: a European directive to transpose

This reform stems from the EU's second Consumer Credit Directive (CCD2), transposed into French law through a series of 2025 ordinances and an implementing decree published in 2026. The underlying idea, according to consumer group Leo Lagrange, is to close a legal gap: by classifying it as a simple rental, some financing bodies could offer LOA without the protections normally attached to credit, even though the client's financial commitment closely resembles a standard loan in practice.

A topic affecting a majority of buyers, not a niche

This is not a marginal technical adjustment. According to Journal de l'Automobile, car leasing — LOA and LLD combined — now accounts for 63% of new car registrations in France, versus 37% for direct purchase (a standard loan or cash). Another notable shift: LLD (long-term rental, without a purchase option) is growing fast and reached about 30% of new registrations in early 2026, almost level with LOA itself. The topic therefore concerns a majority of future new-car buyers, not just a niche.

What it actually changes for you

The main expected benefit is comparability: with a displayed APR and a total cost set against the vehicle's price, it becomes possible to objectively compare an LOA offer with a standard loan or a cash purchase — something that previously required reconstructing the calculation yourself from the monthly payment, the deposit and the buyout value. The right to buy out the vehicle early at any time also offers more flexibility for anyone wanting to exit the contract sooner than planned, for instance after a change in circumstances.

What the reform does not change

This framework does not turn LOA into ownership: unless you exercise the purchase option, you remain a tenant of the vehicle until the end of the contract, with the usual limits (contractual mileage, wear-and-tear excess). The precise implementing details — notably the level of the dedicated LOA usury rate — are still to be specified by regulatory texts in the coming weeks; we will update this article if official clarifications change what is described here.

What Compar'Car takes from this

This reform reinforces exactly the argument we have made from the start: the right instinct is never to compare an isolated monthly payment, but a total cost over the term, whatever financing method is chosen. That is why Compar'Car's profile asks for your intended financing method (LOA, LLD, loan or cash) alongside your budget, and weighs every vehicle in your selection accordingly.