How much do I save with a company bike?

Savings depend on your salary, tax class, and bike price. Typically you save 15-40% compared to a private purchase. For an e-bike at €3,000 RRP with a €3,500 gross salary in tax class I, effective monthly costs are around €55-70 instead of the full lease rate of approx. €109. Over 36 months, this means savings of several hundred euros compared to the retail price.

What is the benefit-in-kind for company bikes?

Since 2020, the benefit-in-kind for bicycles and e-bikes (pedelecs up to 25 km/h) through salary sacrifice is only 0.25% of the RRP per month. For a €3,000 bike, that's €7.50 monthly that must be taxed additionally. S-pedelecs (over 25 km/h) are treated like company cars with the 1% rule. If the bike is provided on top of salary (no salary sacrifice), the benefit-in-kind for regular bikes and e-bikes is zero.

What happens when the lease ends?

After the lease term (usually 36 months), you have three options: 1) Buy the bike at residual value (typically 18% of RRP, e.g. €540 for a €3,000 bike). 2) Extend the lease at reduced terms. 3) Return the bike. Most users choose to buy, as the residual value is well below the actual market value.

Is a company bike worth it on a low salary?

Yes, you can still save even on a lower salary, though the tax savings are smaller. From around €2,000 gross salary, company bike leasing is usually worthwhile. Note however that salary sacrifice reduces your social-insurance-liable income, which can have a minor long-term impact on pension and sick pay entitlements.

What is the difference between E-Bike and S-Pedelec for company bikes?

E-bikes (pedelecs) assist up to 25 km/h and are classified as bicycles – no license, no mandatory insurance, and only 0.25% benefit-in-kind. S-pedelecs assist up to 45 km/h and are classified as mopeds – requiring a license plate, insurance, and 1% benefit-in-kind (like a company car). From a tax perspective, e-bikes are significantly cheaper.

Can I use the company bike privately?

Yes, private use is explicitly allowed and encouraged. This is one of the major advantages over traditional company car arrangements. You can use the company bike for commuting, shopping, sports, and leisure – without additional costs or restrictions.

Does salary sacrifice affect my pension?

Yes, salary sacrifice reduces your gross income subject to social insurance. This means you pay less into the pension system, which can affect your future pension entitlements. However, with a lease rate of €100 monthly over 36 months, the impact on your eventual pension is minimal (a few euros less per month). The immediate savings far outweigh this in most cases.

What does the company bike cost the employer?

With pure salary sacrifice (no employer subsidy), the company bike costs the employer nothing – they actually save money, as they don't pay social insurance contributions on the converted amount (about 20% of the conversion amount). The employer only has the administrative effort for the framework agreement with the leasing provider. A voluntary employer subsidy is an attractive benefit that is tax-deductible as a business expense.

Can I claim commute allowance despite having a company bike?

Yes! The commute allowance (€0.30 per km for the first 20 km, €0.38 from the 21st km) can be claimed regardless of whether you use a company bike. This applies to all means of transport. So in addition to savings from salary sacrifice, you can deduct the commuter allowance in your tax return.

How does insurance work with a company bike?

Most leasing providers (JobRad, BusinessBike, Lease-a-Bike, etc.) offer all-inclusive packages that include theft insurance, comprehensive coverage, pick-up service, and wear-and-tear repairs. Costs are typically €5-15 per month depending on the bike value and coverage scope. These costs are usually included in the monthly lease rate.

Company Bike After Lease End: Buy Out, Extend, or Return? | Company Bike Calculator

What Happens at the End of the Company Bike Lease?

The lease contract for your company bike typically runs for 36 months (sometimes 48 months). What happens afterward depends on your contract and your leasing provider. Generally, three options are available: buyout, extension, or return.

Option 1: Buying Out the Bike

By far the most popular option is buying the bike at its residual value. After 36 months, the typical residual value is 18% of the original RRP. For a bike with a EUR 3,000 RRP, that would be EUR 540. With a 48-month term, the residual value often drops to about 10% (EUR 300).

Tax Treatment of the Buyout

The buyout price is taxed as a one-time benefit-in-kind if it is below the actual market value of the bike. In practice, this means you pay tax on the difference between market value and buyout price. Many providers now have standardized buyout offers with clear tax treatment.

Why the Buyout Almost Always Makes Sense

A well-maintained e-bike still has a market value of 40-60% of the new price after 3 years. The buyout price of 18% is well below this. Even with the tax burden, the buyout is financially attractive. Plus, you know the bike and can assess its condition.

Option 2: Extending the Lease

Some providers allow an extension of the lease contract for an additional 12 months at reduced terms. The rate drops significantly, as most of the depreciation occurs in the first 36 months. This option can make sense if you're still undecided or saving for a new model.

Option 3: Returning the Bike

You can also return the bike. In this case, there are no further costs for you. The bike goes back to the leasing provider, who disposes of it. Few users choose this option, as the buyout price is typically so attractive that returning rarely makes sense.

What Happens If the Bike Is Stolen or Damaged?

This is where the insurance included in most lease packages comes in. In case of theft, you typically receive a replacement bike for the remaining term or the contract is terminated. In case of total loss, comprehensive insurance applies. Normal wear (tires, brake pads, chain) is covered by many providers' service packages.

Tips for Lease End

1. Review the buyout conditions early — ideally 3 months before the contract ends. 2. Document the bike's condition (photos, last service). 3. Compare the buyout price with the current market value. 4. Factor in the tax burden of the buyout. 5. Inquire about the possibility of starting a new company bike lease immediately.

Follow-on Leasing: Your Next Bike

Many company bike users start a new lease immediately after buying out their old bike. This way, you continuously benefit from tax savings and always ride the latest technology. The old bike becomes your private second bike or can be sold — the residual value belongs to you. With follow-on leasing, you again benefit from the tax and social insurance savings of salary sacrifice — and get a brand-new bike with current battery and motor technology.

Real Buyout Prices: What Do Users Actually Pay?

In practice, buyout prices vary by provider. JobRad has used a fixed-price model since 2022: the buyout costs a flat 18% of the RRP for 36-month terms. BusinessBike and Lease-a-Bike have similar models, sometimes tiered by term and bike value. For bikes over EUR 5,000 RRP, the residual value is sometimes 15%; for bikes under EUR 2,000, it may be 20%. Check the exact terms in your lease contract.

Tax Optimization at Lease End

A pro tip: if you know you will buy out the bike, plan the buyout for year-end. This way, the one-time benefit-in-kind from the buyout falls in the same tax year as any deductible expenses that can offset it. Also note: the benefit-in-kind from the buyout is taxed together with your monthly salary — so it temporarily increases your taxable income in that particular month.

What If You Change Employers?

If you change employers during the lease term, there are several possibilities: the new employer takes over the contract (ideal), you buy out the contract privately (pay the residual value and the bike is yours), or the old employer maintains the contract until the end of the term (rare but possible). Most leasing providers have established processes for employer changes — inquire early.

Conclusion

The lease end for a company bike offers an attractive opportunity to acquire a high-quality bike well below market price through the buyout option. The tax treatment is clearly regulated and favorable in most cases. Plan your lease end in advance to choose the best option for your situation — and seize the opportunity for follow-on leasing to always ride the latest bike technology.