Bike Leasing: Simply lease your dream bike through your employer

With bike leasing, your employer provides you with a bicycle or e-bike for both professional and private use. Instead of paying the full purchase price at once, the company bike is provided through a leasing agreement. The monthly costs are usually deducted from your gross salary through a salary sacrifice arrangement. This can lower your financial burden compared to a direct private purchase.

You can use your company bike for commuting, shopping, sports tours, and vacations. The distance between your home and workplace determines neither the choice of bike nor the permitted private use. Depending on the employer and leasing partner, city bikes, mountain bikes, gravel bikes, road bikes, and e-bikes are all options. Certain accessories can also be included in the contract.

The employer remains the contractual partner of the leasing company for the duration of the term. You receive the right of use and pay the agreed rate via your salary. Many contracts run for 36 months. For individual leasing models, other terms are also possible.

Liquid-Life works with various leasing companies and, as a specialist dealer, handles the order, handover, or delivery of your dream bike.

A prerequisite for bicycle leasing is that your employer offers a company bike program. For this, they conclude a framework agreement with a leasing provider and determine which employees are eligible to participate. Price limits, permitted bicycle types, service packages, and the number of possible company bikes can also be regulated by the company.

The path to your own leased bike generally consists of the following steps:

1. Ask your human resources department, your supervisor, or the relevant benefits contact person whether your company offers bike leasing. Clarify which leasing partner is used and whether there is an upper limit for the bicycle price.
2. Get authorized for the company bike portal. Depending on the provider, you will receive an order code, a personal user ID, or access to the online portal.
3. Select your bicycle or e-bike at Liquid-Life. Check the frame size, equipment, and intended use. Lease-eligible accessories should be determined at the time of ordering, as they often cannot be added to the contract subsequently.
4. Submit your leasing request via the form for your desired bicycle. This requires your contact details, the desired bike, the accessories, and the information regarding the leasing partner.
5. Liquid-Life prepares the quote and submits it to the respective leasing partner. The quote includes the bicycle price and all approved additional parts.
6. Your employer reviews and approves the order. Subsequently, they conclude the individual leasing contract. A handover agreement or an amendment to your employment contract is additionally concluded between you and your employer.
7. After approval, Liquid-Life prepares the bicycle. You pick it up at the agreed store or have it delivered, provided the chosen leasing contract and bicycle model allow for shipping.
8. Legally, the employer, not the employee, is the lessee. The salary conversion must be stipulated in the employment contract and apply to the future. In doing so, you forgo a portion of your cash salary and, in return, receive the right to use the company bicycle.

The following information can usually clarify quickly whether and under what conditions you can order a company bike:

• Name of the leasing partner used by the company
• Access to the company bike portal or personal order code
• Permitted minimum and maximum price for the bike
• Policy for employees in their probationary period or with a fixed-term contract
• Possible employer subsidy for the leasing rate
• Requirements for insurance, maintenance, and inspection
• Policies regarding termination, parental leave, and long-term incapacity to work
• Contact person in the HR department for approval

You usually do not need extensive personal documents for the initial request. The necessary data will be requested in the portal or during the subsequent approval process. What matters is that your employer confirms your participation and approves the specific offer.

Naturally, we also offer our bike leasing services to the self-employed, business owners, and freelancers. As an innovative and sustainable alternative to a traditional car fleet, bike leasing provides the opportunity to build a fleet of high-quality vehicles without significant capital investment. The model preserves liquidity while offering great recreational value.

Your advantages at a glance

• Building a fleet: Since the leasing model requires no large down payments or investments, it allows you to build a fleet of high-quality bicycles and e-bikes.
• Liquidity-friendly: The model moves you forward while preserving your liquidity.
• Smart: The monthly net leasing rate can be deducted as a business expense.
• Planning security: Operating costs are fixed, making them easy to plan and manage.
• Pioneering role: You create a professional, innovative, and sustainable image for yourself and your company.
• Free choice: You are not restricted when choosing the brand or manufacturer for your leasing bike.
• Leisure activities: Private use is also possible in a tax-efficient way through the company.

The amount of your actual savings depends on your gross salary, tax class, the price of the bike, and social security contributions. Insurance, service packages, and any potential employer subsidy also play a role. Statements such as "up to 40 percent cheaper" therefore describe an ideal scenario and not guaranteed savings.

If your income exceeds certain social security contribution ceilings, the benefit from social security contributions may be lower. Church tax, child tax credits, and the type of health insurance also affect the result. Therefore, please use a leasing calculator with your personal data before placing an order.

The conversion reduces your gross salary subject to social security contributions, provided your income is not already above the respective contribution assessment ceiling. As a result, you pay slightly less into the statutory pension insurance scheme during the term. This may slightly reduce your future pension entitlement.

The effect is usually limited with standard company bicycle rates, but it does exist. Income-dependent benefits such as sickness benefit, unemployment benefit, or parental allowance can also be affected. If you are close to retirement, planning a longer period of parental leave, or expect an interruption in your employment, you should clarify these points with the HR department before the start of the contract.

The net burden does not correspond to the leasing rate. For example, if a gross amount of 100 euros is converted, the net salary usually decreases by less than 100 euros because less tax and social security contributions apply to the converted amount. In addition, there is a small taxable non-cash benefit for private use.

A flat monthly rate cannot be reliably stated without personal salary data. The following values serve as a guide for a term of 36 months. They assume full salary conversion, an average income subject to social security contributions, and a standard insurance and service package. An employer subsidy can further reduce the burden.

These ranges are not contractual offers. Insurance premiums, service packages, calculation interest rates, and employer terms can significantly alter the monthly rate. Furthermore, a discount on the bicycle does not affect all components of the calculation in the same way. The non-cash benefit is generally based on the manufacturer's suggested retail price at the time of initial commissioning and not necessarily on a reduced sales price.

If you would like to lease a gravel bike for 1,500 euros and have an average income, you should roughly expect a net cost in the lower double-digit range. For an e-bike costing 3,000 euros, this is usually significantly higher, but often remains below a private financing installment for the same purchase price. A short term, comprehensive service packages, or expensive insurance increase the monthly cost.

You are generally allowed to use your company bike for private purposes without restriction. This includes weekend rides, sporting tours, and vacations. Whether your partner, children, or other people are also allowed to ride it depends on the lease agreement and the terms and conditions of the leasing partner.

Some contracts allow use by family members or other persons in the same household. Other employers limit the right of use to the employee leasing the bike. Authorized riders are usually only fully covered by theft and damage protection if their use is contractually permitted. Therefore, check which group of people is specified before passing the bike on to someone else.

This applies in particular to e-bikes, high-quality mountain bikes, and bicycles that are regularly used by several people. An authorized rider must also comply with the insurance conditions. This can include requirements for the bicycle lock, the storage location, or security on a rear rack.

Private use abroad is possible with many leasing and insurance models. The geographical scope is stated in the insurance terms and conditions. Before taking longer trips, check whether theft, accidents, roadside assistance, and return transport are covered in the destination country.

After the contract ends, the bicycle does not automatically belong to you. A lease agreement does not normally contain a guaranteed right to purchase the company bike at a price set at the start of the contract. In practice, many leasing companies submit a purchase offer shortly before the contract ends.

• You accept the purchase offer and buy the bicycle at the offered price.
• You decline the offer and return the bicycle in accordance with the terms of the contract.
• You start a new bicycle lease after returning the bike, provided your employer allows this.

A purchase price of approximately 18 percent of the original recommended retail price is known as a benchmark for various models, but it is not legally mandated. The actual amount may differ. Furthermore, the purchase price alone is not the decisive factor for tax valuation purposes. After 36 months, the tax authorities accept 40 percent of the rounded original recommended retail price as a simplified customary final price. If the purchase offer is lower than this, a taxable benefit generally arises. The lessor often covers the flat-rate taxation of this benefit.

The bicycle should be returned complete, roadworthy, and in a condition consistent with normal use over the contract period. Normal signs of wear and tear are to be distinguished from severe damage or missing parts. The exact criteria can be found in the leasing partner's contract.

Missing parts or unreported damage may result in additional costs. Therefore, keep the handover documents and a list of the leased accessories for the duration of the term.

• For an e-bike, return the charger and all issued battery keys.
• Include any existing keys for the frame lock, battery lock, and accessories.
• Remove any private attachments, provided they are not part of the lease agreement.
• Return all accessories included in the contract in full.
• Report any accident damage or technical defects before returning the item.
• Clean the bicycle and check the tires, brakes, lighting, and drivetrain.