FAQ business bike leasing

Here we have summarized the answers to the most frequently asked questions about the business bike leasing.

Can not find an answer to your question? Write us an e-mail to leasing@e-bikes4you.com. We are happy to answer your questions.


FAQ´s

What is leasing?

Leasing is a form of financing. The leased object (in this case a bicycle) is acquired by the leasing company and made available to the lessee. The employer leaves these to be used by his employees. This process can be implemented with the help of modern technology and our support today very easily and promptly.

How do I calculate my personal savings?

With one of the calculation tools on our website. Here you will find access to some leasing calculators and you can also create comparisons to find the right leasing company.

What does the "1% regulation" mean?

The "company car privilege" refers to the application of § 8 (2) sentence 2 EStG. The employer provides an employee with a company car or a company bicycle. This company bike can be used for business purposes, but may also be used privately. For this private use the employee receives a pecuniary benefit. To compensate for this, the employee has to pay one percent of the gross list price monthly as a pecuniary advantage.

Since 2012, the company car privilege can also be applied to bicycles, pedelecs and e-bikes. (Application of § 8 (2) sentence 2 EStG./ enactment of the tax authorities of the states of 23 November 2012)

In one respect, the company bike are even more advantageous than the company car: the route between the place of residence of the employee and the workplace does not need to be taxed (elimination of 0.03% tax per distance kilometer).

May I also use my company bike privately?

Yes! Your business bike is available to you for private use without restriction due to the 1% tax. All persons living in the household may also use the service wheel. However, the employer may impose certain restrictions.

May also family members ride the business bike?

From an insurance perspective, this is possible with most leasing companies. Here, however, the employer may make specifications or specify restrictions.

Which bikes can be leased?

There are no legal restrictions here. The framework is limited only by the specifications of the leasing companies for which the cost of a leasing contract only pays off a certain purchase price. This starts, depending on the provider, at about € 650, - and ends at € 15,000, -. In addition, the employer can set a price limit. Within these limits, almost any bike can be leased from city bike, cruiser, e-bike, mountain bike, e-MTB, trekking bike, road bike, cargo bike. All the bikes in our online shop at e-bikes4you.com can be leased.

So-called S-pedelecs (support up to 45km / h) are treated as motor vehicles and are subject to some regulations, so that many employers exclude these models from the outset.

Which accessories can be bundled?

Here there are differences depending on the leasing companies. In most cases, any accessories can be leased, which is permanently installed on the bike. Clothing and helmets are excluded. In any case, a secure brand lock must be bundled.

Why is leasing so much cheaper than cash purchase?

Several reasons play a role. The main part of the savings results from the 1% regulation. Salary conversion eliminates social security contributions and reduces taxable income.

How does the salary conversion work?

The employee decides to convert part of his gross salary into a benefit in kind. This factual reference is the leasing rate for the business bike. No social contributions are payable on this benefit, but only the 1% regulation for the benefit in cash has to be applied. This creates a tax advantage for the employee and the employer. This has been standard practice for company cars for years, now this is also possible with business bikes.

How high are the costs for the employer?

For the employer, the model of the business bike leasing is mostly cost-neutral. Often, however, employers are so enthusiastic about the many benefits that they like to subsidize employees for part of the lease to motivate employees.

How long does the leasing contract last ?

As a rule, the contract lasts for 36 months. But it can also be agreed 48 months.

Can the leasing be terminated prematurely?

If the leasing contract has to be terminated before the end of the contract period, a cancellation offer will be requested from the leasing company. If this is accepted and the transfer fee paid, the lease is terminated prematurely. This option is usually economically uninteresting for the lessee.

What are the differences between tax-deductible and non-tax-deductible employers?

The leasing rates are business expenses. VAT deductible employers may deduct the VAT included in the leasing rates. A business bike is thus significantly cheaper for employees than a cash purchase. For employers who are not entitled to deduct VAT, the savings are accordingly lower.

What are the advantages of the service wheel leasing for non-tax deductible employers?

Since the leasing rates are always business expenses, employers who are entitled to deduct input tax can deduct the VAT included in the conversion amount. The employees participate in this opportunity. For employees who are not entitled to deduct VAT, the savings for employees are correspondingly lower.

Which terms are possible for the leasing?

Most leasing companies offer a term of 36 months for the business leasing. For the self-employed and freelancers it may be advantageous to agree on a term of 48 months.

What happens after the leasing period has expired?

If the lease has smoothly come to an end, the leasing company makes an offer to take over the bicycle to the so-called residual value. This currently amounts to approx. 18% of the original price. If the offer is not accepted by the user, the business bike must be returned to the leasing company.

I already have a company car. Can I still lease a business bike?

Yes. Even those who have a company car can lease a business bike.

Is my business bike insured?

Insurance is compulsory for the leasing of a business bike because the leased object (in this case the bike) serves as security for the underlying financing. The leasing companies offer appropriate insurance. They are an integral part of the contract. The insurance benefits of the leasing providers are consistently so good that they offer the lessee and the user of the bike extended protection at very favorable conditions.

Can i keep my business bike at the end of the leasing contract?

This is possible with all leasing providers. However, certain conditions must be met. The contract period of 36 or 48 months must have run smoothly. There must be no payment defaults or disputes. The leasing companies offer the user a few weeks before expiry of the leasing contract the business bike for sale. The remaining residual value is currently around 18% of the original price.

For tax reasons, a takeover of the business bike at the end of the term may not be fixed in advance. It can not possibly be part of the contract.

Can I also lease a used bike / e-bike as a business bike?

No. Used bikes and pedelecs / e-bikes cannot be leased.

Can I lease a discounted bike / e-bike as a business bike?

Yes. However, the pecuniary advantage is always based on the manufacturer's non-binding price recommendation. Anyway there are costs associated with the leasing variant for the specialized trade, so that severely reduced prices can not be applied in this case. With reduced offers, it is absolutely advisable to make a request in advance at what price the bike can be purchased by the leasing company. Often, a supposedly interesting discount has only a negligible effect on the monthly leasing rate. The payable residual value is not affected at all because it always refers to the original price.

Is it possible to lease a second bike?

Yes, that is possible. However, the employer can put a stop to this by limiting the business bikes to one per employee. For some leasing companies, there are still a few requirements for this to be possible. If you want to lease a bike for the partner, some leasing companies require that they live in a common household with the main lessee. To be on the safe side, it is advisable to obtain a so-called call information from the responsible tax office in order to obtain legal certainty here as well.

Is it true that the employer can participate in the leasing rates?

Yes, that's even common. Many employers like it very much. There are many reasons for this from the perspective of the employer. Motivation of the employees, active health management, relaxation of the parking situation on the company premises, employee loyalty, alternative to the clumsy salary increase and much more.

The employer himself decides on the amount of his participation. This can range from the assumption of insurance costs to the assumption of the full leasing rate.

is every empolyer allowed to offer his employees a business bike?

Yes. All private companies may in principle offer service bicycles. Exceptions exist with employers of the public service. Here you have to ask individually if the possibility exists. It may also be excluded in certain cases by collective labor agreements to provide business bikes.

Is it possible to use a business bicycle to claim the distance charge (income-related expenses) for the trips to work?

Yes! The distance charge for routes between home and workplace is basically independent of the means of transport. It is to be granted with 0.30 € / km (§9 Abs. 1 Nr. 4 EstG). While in a company car the journey must be taxed additionally with 0.03% / km / month of the vehicle list price, this does not apply to the business bike. The situation is different for fast e-bikes (so-called S-Pedelcs, with support up to 45 km / h). These are treated like motor vehicles and must be additionally taxed at 0.03% / km / month.

What happens if the employee is ill for more than six weeks?

After six weeks, the salary payment by the employer ends. Thus, then no salary conversion is possible and the employer takes over the leasing rates.

What happens if an employee leaves the company before the lease expires?

If an employee terminates his employment relationship before the end of the leasing period, the transfer of the business bike ends. The employee is obliged to return the business bike to the employer. On request, an offer can be made to the the employee for taking over the business bike through the leasing company. He can accept, but he does not have to. If the employee then starts to work for another employer, the new employer can take over the current lease and is obliged to do so.

Your question is not listed? Do not hesitate to contact us personally, we are happy to provide you with information:: leasing@e-bikes4you.com or per phone: +49 8033 978 921