Cloppenburg/Braunschweig. Bike Mobility Services (BMS) enters the leasing and financing of bicycles business with Volkswagen Financial Services. BMS is a wholly owned subsidiary of Pon Bike, a top five player in the global bicycle market with international brands such as Cervélo, Kalkhoff, Santa Cruz, Focus, Raleigh and Royal Dutch Gazelle.
The leasing offer is aimed at companies and their employees, and the financing offer is aimed at private customers.
“We have seen ourselves as a full-service provider for mobility for many years,” says Lars-Henner Santelmann, Chairman of the Board of Management of Volkswagen Financial Services AG: “The rapid development of e-bicycles allows us to reach many customers through financing and leasing offers that promote sales.” There are clear parallels to the automotive industry here. The expansion of the business model on the part of Volkswagen Financial Services takes place through the investments of Volkswagen Financial Services AG in Digital Mobility Leasing GmbH (26 percent) and Volkswagen Bank GmbH in the Austrian fintech Credi2 GmbH (20 percent). Through the additional sales cooperation with Bike Mobility Services GmbH, customers throughout Germany can now choose their desired bicycle at the dealer and conclude the contract on site.
In addition to leasing, both partners offer private customers a new financing option via the “Finance a Bike” brand. The prerequisite is a previous registration of the bike dealer with Finance a Bike. Benefits: With just one visit to the dealer, private individuals can choose the bicycle of their dreams, obtain financing and take the bike with them directly. They can apply for a loan of between 500 euros and 10,000 euros in less than ten minutes via the one hundred percent digitalised online application – quickly, easily and securely. In addition to bicycles, this amount can also be spent on accessories such as bicycle locks, helmets and additional batteries. An individual term of between 6 and 60 months as well as a possible early repayment offer flexibility for customers.
The new process is beneficial for bike dealers also as the use of Finance a bicycle is completely free of charge for them and they tap into additional sales potential. Moreover, the fully digitalised process is completed independently by the customer, which means that the sellers can use their time for personal advice. This improves service performance and strengthens customer loyalty. A shopping cart is specifically created for the customer in the merchant portal. The customer receives a confirmation SMS, enters his personal data and selects the term and instalment amount. He then confirms his identity in a video call (with passport or identity card). The credit score is checked automatically via online banking. For dealers, there is no risk in processing and one hundred percent payment security with receipt of payment within 24 hours. Dealers also receive a commission on the financing. During the introduction of the system, dealers are supported by the sales force. Currently, around 450 bicycle dealers in Germany offer the new financing model. More will be added this year.
Company bike leasing is also offered, for which BMS also cooperates with Volkswagen Financial Services. Here, the cooperation partner approaches customers to present company bicycle leasing as a supplement to company car leasing. This has clear advantages for dealers. The reason for this is that a new customer option is emerging. In the case of company bike leasing, vehicles leased by the employer are used by the employees within the framework of a transfer and the private use is regulated by the 1% taxation. This is usually done in the course of the employee's deferred compensation. Benefits for the employee: A savings of up to 35 percent compared to buying a bicycle outright. Additional services such as all-round protection can also be added.
Over 3,000 bicycle dealers are already listed in Germany today. The offer applies to all branded bicycles carried by the dealer from 499 euros and up to 15,000 euros. The bicycles don’t have to be used exclusively for commuting to work, but can also be ridden in everyday life, during holidays or for sports.