While the classic company car was considered a status symbol until recently, the sporty and sustainable alternative of "company bike leasing" is becoming increasingly popular. Due to growing environmental awareness, increasing traffic in German city centres and the greater importance of promoting employee health, the two-wheeler used for business purposes is gaining in popularity. According to the latest Mobility Observatory fleet barometer - a representative study by mobility service provider Arval - half of the German companies surveyed already offer bike sharing/leasing or are planning to introduce it in the next three years. Company bikes are becoming particularly interesting for employees in densely populated areas such as city centres. The two-wheeler offers a relaxed form of mobility, free from the stress of time-consuming rush-hour traffic jams and long searches for a parking space. Comprehensive all-round protection, which includes services such as maintenance contracts and theft insurance in the leasing instalment, and unlimited private use are also among the key reasons for choosing a company bike.
How does company bike leasing work?
Whether a trekking bike, sports bike or e-bike - the first step is for the employee to choose the bike of their choice, with individual features to be negotiated with the employer. Just like a company car, the company bike is made available to the employee for use over a certain period of time, whereby the company bike can be used for both business and private purposes. The difference to a company car: companies can offer each of their employees a company bike. The term is 36 months. In principle, the type of bike and the use of the bike depend primarily on the employer's contractual agreements.
"The favourable salary conversion and comprehensive all-round protection make the concept of company bikes in the form of e-bike and bicycle leasing interesting for every employee. Company bike leasing is one of the healthiest and most environmentally friendly mobility options. In this way, companies promote satisfaction and enhance their image at the same time," explains Eva Rothe from mobility service provider Arval.
Why company bike leasing is worthwhile
Company bike leasing is particularly attractive due to the favourable salary conversion. The leasing instalment is deducted directly from the employee's gross salary. In this way, the employee can save up to 40 per cent compared to direct purchase. The prerequisite for this, however, is that this is permitted under labour law. The leasing costs depend on the value of the selected bike and other costs for additional services such as insurance, repairs, maintenance or other services. This results in a certain instalment contribution, which is automatically deducted from the employee's gross salary each month and ranges from around 30 to 100 euros - although it can be significantly higher depending on the model.
TIP: The purchase option for the employee should always be excluded in the leasing contract. The reason for this is that the tax office may otherwise consider the employee to be the economic lessee instead of the employer, which could result in additional tax and social security contributions being paid. Nevertheless, the user can purchase the bike at a favourable price at the end of the leasing period - they just have no contractual claim to the takeover option.
Taxes and private use
The company bike remains tax and social security exempt, provided the employer grants the bike in addition to the agreed salary and covers the costs in full. The offer of a company bike is therefore a very good alternative to a salary increase. Since 2012, the company bike has been considered an equivalent alternative to a company car for tax purposes. If the employee also wants to use the company bike privately, the 1 per cent rule has applied since January 2020. This means that one per cent of the list price is taxable as a non-cash benefit. However, there is an exception for bicycles and e-bikes that travel faster than 25 km/h and were purchased between 2019 and 2021: these two-wheelers are only taxable at 0.25 per cent of the list price. The full commuter allowance can also be claimed for a company bike. Employees can deduct 30 cents per kilometre of distance in their tax return.
All-round carefree cycling thanks to comprehensive service packages
Theft, accident, maintenance - these are all issues that employees don't have to worry about. When locked, the company bike is insured 24 hours a day at replacement value for the entire leasing period. In most cases, the damage cover even includes additional cover such as theft and total loss, operating errors or simple negligence, accidents or vandalism as well as damage to the motor or battery. It is also possible to have the bike used for business purposes serviced at regular intervals. The amount of the insured maintenance costs must be determined and added according to individual requirements.
Your dream service bike in just a few steps
In most cases, the ordering process is very straightforward. In the first step, employees usually register for company bike leasing via a link or the respective company website. Once their employer has checked their eligibility, employees receive an order code that they can use to select their personalised bike from one of over 2,000 specialist dealers. A leasing contract must then be signed as a supplementary agreement to the employment contract before the employee can collect their company bike from the dealer. As a rule, the leasing contract has already been approved in advance by the authorisation check; alternatively, the leasing contract can also be approved separately after the transfer contract has been signed.
Company bike leasing: the sustainable and healthy alternative to a company car
In general, every employer has the option of offering their employees a company bike. More and more companies have already recognised the advantages of this alternative mobility solution. If your own employer does not yet offer a company bike, it is worth enquiring, as many are very open to company bikes. On the employee side, the extended mobility offer contributes to an improved image and a healthier workforce. Thanks to the favourable salary conversion, the company bike is often a cost-effective way for employees to acquire a high-quality bike. What's more, the company bike can also be used for private purposes without restriction.
The most important company bike leasing providers and their services
JOBRAD, www.jobrad.org
Minimum bicycle value: 749 euros
Maximum value: 11,900 euros or determined by the employer
Specialist dealer: over 6,000
EURORAD, www.eurorad.de
Minimum bicycle value: none
Maximum value: 12,000 euros or determined by the employer
Specialist dealers: over 4,000, of which over 1,000 are ZEG partners
MY SERVICE BIKE, www.mein-dienstrad.de
Minimum bike value: 595 euros
Maximum value: none (special insurance premiums from 10,000 euros)
Specialist dealer: approx. 4,500
LEASE A BIKE, www.lease-a-bike.de
Minimum bicycle value: 499 euros
Maximum value: none or determined by employer
Specialist dealer: over 5,000
BIKELEASING, bikeleasing.com
Minimum bike value: 649 euros incl. lock and fixed accessories
Maximum value: 15,000 euros
Specialist dealer: over 5,000
BUSINESSBIKE, businessbike.com
Minimum bike value: 499 euros
Maximum value: 15,000 euros
Specialist dealer: over 5,000
Important to know:
- The providers have different Retailerwith whom they work. This can influence the choice of bike.
- The monthly Leasing instalments of the providers are generally not far apart.
- There are sometimes considerable differences in the Insurance and services. A comparison is worthwhile here! Above all, you should pay attention to capping and deductibles in the conditions.
- The services included in the package for a Mobility guarantee there are noticeable differences.
- When selecting their leasing partner, employers should look for offers including UVV inspection/maintenance (accident prevention regulations).
