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Company bike leasing put to the test: Are the disadvantages really decisive?

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25 September 2024

Service leasing is sometimes associated with potential disadvantages, but a closer look reveals that many of these concerns can be easily refuted. If you look at the advantages, they often clearly outweigh the potential disadvantages. The most common points of criticism are used to show why company leasing is not only an economically sensible solution, but also a convenient and sustainable one for employees and employers.

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Pension reduction through deferred compensation: Minor and hardly noticeable

A frequent criticism of service leasing is that salary conversion reduces the pension entitlement, as less is paid into the pension insurance scheme. This cannot be completely denied, but the effects are very small in practice.


The savings from salary conversion are often much higher than the potential pension losses. Calculations show that the pension entitlement is reduced by only a few euros per month - an amount that is hardly significant in the long term. On the other hand, the employee benefits from tax savings and social security contributions, which are often significantly higher than the pension loss.


Advantage: The immediate financial advantage of lower tax and social security contributions outweighs the minimal disadvantage of a reduced pension amount.

Insurance risks: all-round protection

Concern about theft or damage to the bike is understandable, especially with high-value company bikes or e-bikes. However, Lease a Bike offers comprehensive insurance that covers almost all types of damage - from theft to vandalism. Even if bureaucratic steps are necessary in the event of a claim, the administrative effort is often minimal these days thanks to digital processes. Lease a Bike also offers support in handling claims, which makes the process even easier. 


With Lease a Bike's comprehensive all-round protection, for example, lessees can lease their company bike worry-free. The package includes theft and damage protection as well as a Europe-wide mobility guarantee that helps in the event of a breakdown. A service package is also included, which provides an annual budget for necessary wear and tear repairs and inspections so that the company bike always remains in perfect condition. This all-round protection package ensures carefree and safe use of the company bike. Find out more in the FAQs.


Advantage: Thanks to comprehensive insurance and simple claims processing, employees and employers can rest assured that unforeseen events do not pose any major financial risks.

Complexity when changing jobs: Flexible solutions

Another disadvantage that is often mentioned concerns possible problems in the event of a job change. What happens to the company bike when the employee leaves the company? Lease a Bike has created flexible options here. It is possible to transfer the bike to the new employer or terminate the contract early. 


The bureaucratic effort is also kept to a minimum thanks to digital processes. Many providers offer support when transferring the contract or returning the bike, which makes the process smoother.


Advantage: The employee remains flexible and can continue to use the bike even if they change jobs or easily adjust the contract.

Taking over the bike: clear rules and fair prices

Another disadvantage that is often mentioned concerns possible problems in the event of a job change. What happens to the company bike when the employee leaves the company? Lease a Bike has created flexible options here. It is possible to transfer the bike to the new employer or terminate the contract early. 


The bureaucratic effort is also kept to a minimum thanks to digital processes. Many providers offer support when transferring the contract or returning the bike, which makes the process smoother.


Advantage: The employee remains flexible and can continue to use the bike even if they change jobs or easily adjust the contract. Calculate your individual savings in our bike leasing calculator.

Young woman with yellow e-bike in front of high-rise buildings

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Condition of the bike on return: Normal wear and tear not a problem

It is often feared that the bike must be returned in almost new condition at the end of the leasing period in order to avoid additional costs. In practice, however, the return conditions are often very accommodating. Normal signs of use, such as small scratches or slight wear and tear, are usually not objected to. 


Modern bikes are also robust and durable, meaning that they are often still in very good condition after three years of leasing. Many lessees therefore decide to take over the bike at the end of the contract term, which means there is no need to return it.


Advantage: There are usually no unexpected costs when returning the bike.

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Tax complications: Clear regulations and attractive benefits

It is often feared that the bike must be returned in almost new condition at the end of the leasing period in order to avoid additional costs. In practice, however, the return conditions are often very accommodating. Normal signs of use, such as small scratches or slight wear and tear, are usually not objected to. 


Modern bikes are also robust and durable, meaning that they are often still in very good condition after three years of leasing. Many lessees therefore decide to take over the bike at the end of the contract term, which means there is no need to return it.


Advantage: There are usually no unexpected costs when returning the bike.

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Limited flexibility: predictable and manageable contract term

Critics argue that the fixed contract term of three years restricts the employee's flexibility. In reality, however, this fixed term offers planning security. The employee can be sure that they will be able to use the bike for the entire leasing period, both professionally and privately.


Lease a Bike also offers flexible options for terminating the contract early or changing the bike if life circumstances change.


Advantage: The fixed term offers security and predictability, and flexible contract solutions allow you to adapt to changing life circumstances.

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Advantages clearly outweigh disadvantages

Company leasing offers many advantages that far outweigh any potential disadvantages. The savings from tax and social security contributions, the comprehensive insurance and the flexible handling of job changes make company leasing attractive for many employees. Critical points, such as the impact on pensions or possible complications when changing jobs, are easily put into perspective by the many positive aspects.


All in all, company leasing offers a great opportunity to travel in a cost-effective, environmentally friendly and healthy way - with minimal risk.


Here you can find the advantages for employees and employers.