Is it worth leasing a bike or e-bike through your employer?

What does bicycle leasing or e-bike leasing mean?

In recent years, the concept of bicycle leasing or e-bike leasing has established itself as a popular alternative to the classic purchase of bicycles. This payment option not only offers you financial advantages, but cycling also helps promote your health, general sustainability and mobility.
When leasing a bicycle, your employer concludes a framework agreement with a leasing provider. Your employer will then sign a rental agreement with you as an employee for the bicycle or e-bike, which also regulates the corresponding private use. The leasing rate is then deducted directly from your gross wages, which leads to a reduction in your taxable income. This salary conversion means that fewer taxes and social security contributions are paid, which is beneficial for both you and your employer.
The taxable monetary benefit is usually 0.25% of the list price of the bicycle or e-bike per month, which is extremely low compared to other monetary benefits such as a company car. This tax advantage makes bicycle leasing an attractive option for you as an employee.
The leasing term is usually three years and at the end you have the option of taking over the bicycle or e-bike with a final installment. During the entire leasing term, your leasing rate often includes inspection packages and insurance, which offers you additional comfort and security.
Overall, bicycle leasing or e-bike leasing is an attractive option for you to benefit from financial advantages while at the same time making a contribution to your own health and general sustainability and mobility.
Employers should therefore consider this option in order to offer their employees an attractive additional benefit and at the same time increase their own attractiveness as an employer.

Is leasing a bike worth it for you?

The decision for or against a bike leasing depends on various individual factors, including your income , your tax bracket , a potential employer subsidy and the price of the bike or e-bike . But in general, bicycle leasing offers attractive financial advantages and should therefore always be considered.
Thanks to salary conversion, your taxable income is reduced, which leads to a reduction in your tax and social security contributions. Individual tax rates and social security contributions can also be taken into account here.
It is also important to consider a potential employer subsidy, if offered. Some employers support their employees financially when purchasing a bicycle or e-bike through subsidies for the leasing contract.
The savings when leasing a bike can be up to 40% compared to buying it directly, although, as already mentioned, this depends on various individual factors. You can determine your potential savings, for example, on our Carver bicycle leasing page using the JobRad calculator.

Should you pay attention to anything when leasing a bicycle or e-bike?

There are some important aspects to consider when leasing a bicycle or e-bike, regardless of whether you are an employee or self-employed person. There are various bike leasing providers to choose from both online and offline, offering different conditions and models. Here are some important points you should consider when leasing a bicycle or e-bike:

1. Term and options: The term of the leasing contract is usually 3 years and often includes maintenance and insurance. There is often also the option of buying the bicycle or e-bike with a residual value at the end of the term.
2. Ownership: When leasing, the bicycle or e-bike belongs to your employer during the leasing term. However, this leaves it up to you to use. When the remaining installment is paid at the end of the term, ownership is transferred to you. The buyback value at the end of the term is often between 18-20% of the non-binding sales price (RRP).
3. lexibility : Pay attention to how flexible your leasing contract is. In the event of events such as parental leave, termination or a change of employer, there are often solutions to adapt the leasing contract or terminate it early.
4. 
   Bicycle leasing as a private person or self-employed person: Bicycle leasing is also possible for private individuals or self-employed people. However, there are no tax advantages like there are with employee leasing. So far there are relatively few providers and the insurance costs can be higher because only large providers have framework agreements with insurance companies, which makes them cheaper.
5. Tax deductibility as a self-employed person: Self-employed people can deduct the leasing installments from their taxes as a business expense. This makes it possible to deduct the high leasing rates completely and directly from taxes.

Carefully compare the offers from different providers to find the right bike leasing or e-bike leasing that best suits your needs and financial possibilities.

Can all bikes be leased?

In principle, almost all types of bicycles and e-bikes can be leased. This includes normal bicycles, e-bikes with different support levels and Pedelecs (Pedal Electric Cycles).
However, employers can exclude certain types of bicycles, such as S-Pedelecs, from leasing. S-Pedelecs differ from regular e-bikes in their higher motor support, which enables speeds of up to 45 km/h.
It is therefore important that you find out about the specific policies and conditions of your employer and the leasing provider to ensure that you choose the right type of bicycle or e-bike for your needs.

Bicycle leasing offers you these advantages

Bike leasing offers a variety of benefits that make it an attractive option for many people. Here are some of the benefits that bike leasing offers you:

Inspection costs often included: Inspection costs are often included in the lease, meaning you don't have to worry about additional maintenance costs. Typically the bike is inspected once a year to ensure it remains in perfect condition.

1. Automatic insurance: A leased bike is usually automatically insured, giving you extra peace of mind should something happen.
2. New leased bike in the event of damage: If the bike is damaged, a new leased bike is often provided, which means that you can be mobile again quickly without having to incur additional costs.
3. Payment in convenient installments: You pay for the bike in convenient monthly installments.
4. Savings: With tax advantages and the ability to reduce maintenance and insurance costs, you can often save money by leasing the bike instead of buying it outright.
5. Included accessories: Fixed accessories can often be included in the leasing contract, meaning you can customize your bike to your liking without having to incur additional costs.
6. Choosing to lease a bike over buying it outright: With the option of leasing the bike, many people are more likely to choose a high-quality bike that they might not be able to afford right away if they had to buy it outright.
7. Leasing multiple bikes: Some employers allow their employees to lease multiple bikes, which means you can also lease a bike for your partner if desired.
   

Overall, bike leasing offers a variety of benefits that make it an attractive option for those looking for a new bike or e-bike. From the financial benefits to the added security and flexibility, bike leasing is a practical and sensible way to be mobile without having to rely on a car.

Bicycle leasing offers you these disadvantages

Although bike leasing offers many advantages, there are also some disadvantages that should be taken into account. Here are some of the potential disadvantages:

1. No possibility of termination: As a rule, a leasing contract cannot be terminated early. This means that you are bound to the contract for the agreed leasing term, even if your circumstances change or you no longer need the bike.
2. No returns or exchanges if you don't like it: If your leased bike doesn't meet your expectations, you usually have no option to return it or exchange it for a different model. The leasing contract remains in effect until the end of the term.
3. Reduction of pension contribution: The salary conversion used when leasing a bicycle to pay the monthly leasing payments can lead to your gross income being reduced. Since the amount of pension contributions often depends on gross income, this can lead to a reduction in your pension contributions.

So it's important to consider these potential disadvantages and carefully consider whether leasing a bike is the right choice for you. If you want to remain flexible and have the option to sell the bike if necessary or upgrade to a newer model, buying outright might be a better option for you.

Bicycle leasing with JobRad at Carver: This is how you can easily get your Carver bike

1. The first step is to check whether your company works with JobRad as a leasing partner. Your HR department can tell you this. Also ask there whether you meet the JobRad conditions.
2. Browse through our Carver online shop to find your perfect bike. Please note that the total value must be at least €749.
3. Simply put the bike you want in the shopping cart and select JobRad for employees when checking out. After you have ordered the bike, we will hand your order over to JobRad and have it checked.
4. If everything is clear from JobRad and your employer, we will start sending you your new bike.
   If you would like to know more information about bike leasing with JobRad at Carver, take a look at the Carver Leasing page .

Bicycle leasing through an employer has become a popular alternative to classic bike purchasing in recent years. The bike leasing option not only has financial advantages, but also promotes health, sustainability and mobility. Whether this concept suits you depends on individual factors.