How long is the contract term for a company bike lease?
The contract term for company bike leasing with Lease a Bike is generally 36 months, or three years. This is also the industry standard for most providers. The fixed term is tied to the tax requirements outlined in the leasing regulation. Good to know: Early termination is possible with Lease a Bike in certain cases—such as a job change, parental leave, or retirement.
The most important information at a glance.
How long is the contract? Generally, a Dienstrad lease contract runs for 36 months (three years).
Are there shorter or longer terms? In line with market standards, Lease a Bike also offers only a 36-month lease term, so there are no shorter or longer terms available.
Do I have to cancel the contract? No, the contract ends automatically upon expiration.
Can I terminate the contract early? In certain cases, this is possible (e.g., if you change jobs, take parental leave, or retire).
What happens after 36 months? Your options are to purchase the bike or return it. You can also lease a new company bike afterward.
How much does it cost to purchase the bike? This is based on a personalized, “affordable” purchase offer, which we’ll provide upon request and as long as possible.
The 36-month contract term is no coincidence, but rather a result of tax regulations. In order for the company bike to be classified as a lease rather than a disguised installment purchase, the contracts must comply with the requirements of the so-called Leasing Decree. A 36-month term falls within the tax-recognized range and aligns with the lessors’ residual value calculations. If the contract were significantly shorter, the relationship between the useful life and depreciation would become unstable from a tax perspective.
There is also a practical benefit: Over three years, the costs are spread out over 36 manageable installments, and the salary conversion takes full effect. The shorter the term, the smaller the tax savings.
Can I shorten or extend the term?
No - 36 months is the standard term. An extension beyond 36 months is not possible. Once the term expires, you’ll need to decide whether to purchase the current bike or return it. Afterward, you can lease a new company bike with a new contract and your existing order code. Early termination within the 36-month period is possible in certain cases - please feel free to contact us directly to discuss this. Important: If you actively shorten the term, you’ll save correspondingly less in taxes because the deferred compensation period is shorter.
Do I have to actively cancel the contract?
No, you don’t need to cancel anything at the end of the term—the lease agreement ends automatically after 36 months. It’s even simpler than that: We’ll contact you in plenty of time to go over the next steps (purchase offer or return, plus the option of a new lease agreement). Active cancellation is only necessary if you want to terminate the agreement early. In that case, just contact us directly.
What happens with a company bike lease after 36 months?
Once the company bike lease agreement expires, you have several options: you can purchase the bike, return it, or sign a new lease. Here’s how it works:
Take over the company bike
Well in advance of the contract’s expiration, we’ll check whether a purchase offer is possible and send it to you by email no later than three months before the contract ends. You can choose from various payment methods, and after payment, you’ll receive an invoice that includes proof of ownership. At that point, ownership of the bike is transferred to you.
Return the company bike
We'll conveniently pick up the bike at your home or business.
Lease a new company bike
Use the existing order code to select a new model from a participating retailer.
What happens if the employment relationship ends prematurely - for example, due to termination?
In many cases, a safeguard mechanism kicks in, and there are several options—the bike isn’t automatically taken away. Since the lease agreement is between the employer and the leasing company, a follow-up solution is sought when the employee leaves. There are four options:
User switch
The employer transfers the company bicycle to another employee for the remainder of its useful life and regulates this internally (e.g., through a supplementary agreement or a handover).
Early termination by mutual agreement
The contract is terminated for good cause related to economic circumstances. You can take ownership of the used bike. Optionally, you can finance the purchase price through a popular payment provider.
Change of employer
Once the credit check is approved, the contract will be transferred to your new employer, and you will keep the bike for the remainder of the term.
Returns
If none of the options work, the bike is returned to the employer. We will handle the details on a case-by-case basis.
Lease Payment Protection: If your continued salary payments are suspended—for example, due to more than 42 days of sick leave with sick pay or during parental leave—our Lease Payment Protection will cover your lease payments for up to twelve months, provided the contract has been in effect for at least six months.
How much will the acquisition cost in the end?
The purchase offer is cost-effective, but we deliberately do not specify a fixed percentage in advance. This is because, for tax reasons, the purchase price cannot be contractually guaranteed. You will therefore only learn the binding price in the specific offer, which will be sent by email no later than three months before the expiration date. Also good to know: Lease a Bike Deutschland GmbH covers the taxation of the monetary benefit in accordance with Section 37b of the German Income Tax Act (EStG), so users do not incur any additional tax costs.
What are some potential pitfalls regarding the term?
Here are three practical points you should keep in mind before signing a contract:
An early exit means lost savings
Anyone who is expected to retire in less than three years, or who is planning an extended parental leave or a sabbatical, may not be able to take full advantage of the 36 months—and thus the full tax savings.
The acquisition price will not be determined until the end
For tax reasons, this cannot be guaranteed in advance. Therefore, do not plan the acquisition based on a fixed figure; instead, wait for the specific purchase offer. As a rule, the acquisition will be financially attractive for you.
The pension is slightly lower
Salary deferral slightly reduces pension benefits (approx. €2 per month for a €3,000 bike). Over the term of the agreement, this is manageable, but it adds up over multiple subsequent contracts.
Checklist: Is a 36-month term right for me?
Do I expect to stay with the company for the next 36 months?
Am I planning to retire, take parental leave, or take a sabbatical in the next three years?
Is my employment status eligible for the lease? (Minijobs are usually not eligible)
Which of the follow-up options would be available to me if I leave the company?
Do I understand that the missed payment protection only takes effect after a six-month term and is valid for a maximum of twelve months?
Do I want to buy the bike at the end of the lease? If so, plan on the fact that the price won’t be finalized until shortly before the end of the lease.