Citroen plans to be the first automaker in Europe to offer a "pay-per-use" leasing scheme with the launch of the new C4 Cactus. The scheme mirrors 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," Citroen CEO Frederic Banzet said during a preview of the car last month. He declined to provide specific details, which will be revealed at the Geneva auto show on Tuesday.
Based on Banzet's description, though, the payment scheme would probably work like this: 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 the customer drives less than the set amount the pay-per-use rate decreases.
Either way, the monthly lease rate would remain the same.