The fact check around the company bike
Find out everything you need to know about the top 5 myths about e-bicycle leasing and what's behind it. Check out Lease a Bike right now.
Perhaps this sounds familiar to you: You've been toying with the idea of leasing a modern e-bicycle for a while – to get more exercise, get regular fresh air, and get a smart new electric bicycle at a reasonable price. At the same time, you are also doing something for the environment and climate protection – it couldn't be better!
When you talk about the idea with a friend or colleague, however, he or she may raise concerns – and doubts will arise. Don’t worry: Many supposed arguments against e-bicycle leasing are voiced out of ignorance and do not stand up to closer scrutiny.
We've checked the facts so that you can make the right decision: Here are the most common myths about e-bicycle leasing!
1. Myth: E-bicycle leasing is complicated
Claim: “company bicycle leasing is definitely a nice idea - but all the paperwork and back and forth with accounting, no thanks!”
We most often hear concerns that leasing a company bicycle is complicated. Usually, they are voiced by people who have not even tried company bicycle leasing themselves. Nevertheless, there can at times be some truth to this myth: How straightforward or complicated the company bicycle programme is depends primarily on the specific provider.
Fact: Lease a Bike has made it its mission to make bicycle leasing as simple and straightforward as possible. Thanks to digitalised and automated processes, e-bicycle leasing with Lease a Bike is quick and convenient. All processes are handled centrally and transparently via an online platform. Create an account to receive a personal code by e-mail. Use this code to select your new dream bicycle at the cooperating e-bicycle dealer. It's that easy!
2. Myth: Too expensive for employers
Claim: “The boss won't go along with that - he'll probably think it's too expensive!”
This objection is also heard quite often – so it's no surprise that employees are hesitant to submit a proposal to their bosses. Yet these concerns are generally unnecessary, since many employees embrace new mobility ideas. The desire for a leased electric bicycle as an alternative to a salary increase is particularly often met with approval.
Fact: Employers do not have to pay a single cent for their employees to enjoy a company bicycle. The company bicycle is a deferred compensation scheme: The leasing instalments are offset against the employee's gross salary. Many bosses voluntarily decide to subsidise the company bicycle - after all, they can deduct these expenses from their taxes as business expenses. The employer also benefits from bicycle leasing: It has a positive effect on the employee health, work satisfaction, motivation and loyalty. The company bicycle is a popular benefit that is also attractive for new and well-qualified employees. The company now also benefits from a sustainable and modern image. With such good arguments, employers can usually be convinced quickly.
3. Myth: Buying an e-bicycle is cheaper
Claim: “Why lease? Buying your own electric bicycle is certainly much cheaper!”
Some people fear that the sum of the leasing instalments will exceed the purchase price of the bicycle at the end of the leasing period. So why not buy an e-bicycle directly instead of leasing it?
Fact: Bicycle leasing is a tax-saving model. This tax saving does not apply to the private purchase of an e-bicycle and ensures that a leased bicycle is actually cheaper than a privately purchased bicycle. Use our handy e-bicycle leasing calculator to see for yourself. In addition, the leasing instalment covers the unrestricted use of the modern e-bicycle, as well as all-round protection. Without such cover, it can quickly become expensive – e.g., if the electric bicycle is stolen or damaged by vandals or if the motor breaks down. Bicycle leasing is therefore not only cheaper, but also safer. Furthermore: At the end of the term, you can buy the leased bicycle at a particularly favourable leasing residual value of approx. 10 percent of the new value. Lease a Bike takes care of the taxation for you.
4. Myth: Can’t choose a bicycle of your choice
Claim: “E-bicycle leasing is certainly quite practical - but I'd rather be able to choose my dream bicycle myself!”
It's quite common for people to engage in this type of thinking when it comes to leased electric bicycles. Passionate bicyclers in particular often have a very specific model in mind and don't want a substandard bicycle – understandable!
Fact: Lease a Bike gives you the freedom to choose – find the exact bicycle you've always dreamed of from any dealer in our specialist dealer network. A chic city e-bicycle for relaxed cruising in the city, a practical folding e-bicycle for longer journeys by bus and train or a solid trekking e-bicycle for long excursions? You decide which bicycle to lease. The price advantage compared to private purchase is especially noticeable in the case of high-quality and more expensive e-bicycles.
5. Myth: Restricted use of the e-bicycle
Claim: “Riding an e-bicycle to work is all well and good - but I don't get anything out of it in my free time!”
Many people wish they could commute to work by e-bicycle. Moderate exercise, fresh air and passing traffic jams – how relaxing! Even further distances involving slopes can be mastered effortlessly thanks to the pedal assistance and powerful motors. But what about the use of the leased bicycle in your free time?
Fact: Company bicycle leasing allows employees to use their bicycle without restriction during their free time. You don't have to ask your boss for permission or keep a logbook. There is also no cumbersome paperwork: Thanks to the one per cent regulation, private use can be easily offset against the salary as a non-cash benefit – similar to a company car. Once the accounting department is aware of the situation, the billing process is completely automatic every month. Since 2020, only 0.25 per cent of the list price has to be taxed as a non-cash benefit.
Conclusion: Better verify claims about company bicycles
There are a few myths surrounding e-bicycle leasing: That it is more expensive than buying a bicycle privately, that you get a substandard bicycle, that the leasing bicycle is too expensive for employers, that the process is complicated, or that you can't use the bicycle in your free time. A closer look, however, shows that these myths don’t stand up to a fact check. The company bicycle has many benefits that employees would not want to miss out on. So take a critical look at claims about company bicycle leasing – they are often made out of ignorance. If you have any questions or would like some expert advice, get in touch – at Lease a Bike we are happy to help!