Bicycle leasing: What's the catch? Advantages, disadvantages, and for whom it's really worthwhile.

"Your dream e-bike for just 70 euros a month" – you'll encounter promises like this everywhere when it comes to company bike leasing. And indeed, the model is attractive to many. But those who look closer will discover pitfalls that are rarely mentioned in the advertising. This article provides an honest breakdown – with everything that entails.

By Vincent Augustin 5 minutes read time

Fahrrad-Leasing: Wo ist der Haken? Vorteile, Nachteile und für wen es sich wirklich lohnt

About the author Vincent Augustin

Vincent founded MYVELO together with Fabian. The two share a long-standing passion for cycling. Together they have cycled thousands of kilometers and fought for victories in the German racing bike league. The idea of founding MYVELO arose from their many years of experience and knowledge of what makes a good bike. Find out more about MYVELO now

Published: July 15, 2026

How does company bike leasing actually work?

The basic principle is easily explained: Your employer leases a bicycle from a provider such as JobRad , Bike leasing , Eurorad or German company bike – and lets you use it for private and business purposes. The monthly lease payment is usually calculated via Salary conversion deducted directly from the gross salary before taxes and social security contributions are calculated.

The bike belongs to the leasing company, not you, for the entire duration of the lease. At the end of the contract – typically 36 months – you can take over the bicycle at a fixed residual value, return it, or conclude a follow-up contract.

The real advantages: This is really true

Tax savings through gross deduction

The key factor: Since the leasing rate is deducted before taxes and social security contributions, the bike costs you significantly less net than the list price would suggest.

Example calculation – E-bike for 4,000 euros, tax class I, gross salary 3,500 euros/month:

position	Amount
Monthly lease payment (gross)	€111
Tax and contribution savings	approx. €41
Monetary benefit (0.25% of €4,000)	+ €10
Actual net burden	approximately €70/month
Total costs over 36 months	approx. €2,520
Takeover price after term (18%)	€720
Total expenses including takeover	approx. €3,240

Compared to a direct purchase, this example saves around 760 euros – real savings of 15–30% are realistic depending on the income tax bracket.

Access to a better bike

Many people cannot or do not want to buy an e-bike for €3,000–€5,000 all at once. Leasing spreads the cost over three years and makes high-quality bikes affordable for everyday use.

Best version: The employer pays for it

If the employer leases in addition to the agreed salary If the employee wears the bicycle without salary sacrifice, the taxable benefit is completely eliminated – the bicycle can then be used tax-free. This is the most attractive model, but also the rarest.

What's the catch? The disadvantages in detail.

1. Your pension will decrease – a little.

Since the lease payment reduces your gross salary, you pay less into the statutory pension insurance. The effect is manageable, but real:

With a monthly payment of 100 euros and a gross income of 3,500 euros, the later monthly pension decreases by approximately... 3–5 euros . It may not sound like much, but for those who lease repeatedly over the years, this adds up to a significant pension gap. The German Pension Insurance has explicitly warned of this effect.

2. Not just pensions – all social benefits are decreasing.

This is the most frequently overlooked point. Because the gross salary decreases on paper, the following benefits are also calculated on a lower basis:

Sick pay (after 6 weeks of continued salary payment)
Parental allowance (based on net income of the last 12 months)
Unemployment benefit I
Short-time work allowance

Anyone planning to take parental leave in the next one to two years should do this before Calculate the costs of concluding the contract. The leasing advantage can quickly be negated by the reduced parental allowance. ⁵

3. Takeover prices have risen – significantly.

For a long time, it was an open secret in the industry: after 36 months, you could buy the bike for a symbolic 10% of the list price. Those days are over.

Provider	Takeover price (previously)	Current takeover price
JobRad	10%	18%
Eurorad	10%	16%

For a €4,000 bike, this means a transfer fee of €720 instead of €400. That still sounds cheap – but it noticeably increases the overall cost and diminishes the advantage over buying outright.

4. You are bound for three years – with no way out

The lease agreement runs for 36 months. Early termination is not permitted. What happens in exceptional circumstances?

Job change: You must return the bike or negotiate a settlement amount. This amount is based on its residual value. plus the outstanding installments – and is significantly more expensive than the regular takeover price at the end, especially if the remaining term is long.

Termination by the employer: You immediately lose the right to use it. Most contracts include a default protection clause so that the employer is not liable – but you, as the employee, are left without a bike.

Prolonged illness: After your sick pay ends, you will no longer receive a gross salary from which the installment payment could be deducted. Depending on your employment contract, you will then have to pay the installment privately out of your own pocket. Labor courts have ruled differently in such cases.

Parental leave: A similar problem exists. Those who don't have a gross income while receiving parental leave benefits may have to cover the loan payments themselves or return the bike early. Some providers offer payment plans – but this isn't standard practice.

5. Low-income earners hardly benefit.

The tax advantage is directly tied to the marginal tax rate: the more you earn, the more you save. Those earning close to the minimum wage or in tax bracket I with low income have significantly less leverage – and simultaneously risk falling below the threshold for tax-free social security contributions through salary sacrifice.

For those in mini-jobs, the model is practically unsuitable, as there is no salary conversion without a social security-liable employment relationship.

6. The bike is not yours

During the rental period, you are a user, not the owner. You may not sell the bike, significantly modify it, or use it as collateral. In case of damage, you have obligations (regular maintenance, insurance), but no ownership rights.

For whom is leasing worthwhile – and for whom is it not?

Especially worthwhile for...

Target audience	Why
High earners (tax class I/III, > €3,500/month)	High marginal tax rate = maximum tax savings
Employees with long-term stable jobs	No job-changing risks, full 36-month benefit
People who want expensive e-bikes	The higher the list price, the greater the absolute tax advantage.
Commuters	Everyday use maximizes the benefits of the leased bike.
Employer contribution without salary conversion	Best scenario: no pension deduction, maximum tax advantage

Less worthwhile or not worthwhile at all for...

Target audience	Why
low-income earners	Small tax advantage, higher risk to social security
Employee about to change jobs	Replacement costs negate the advantage.
People planning parental leave	Parental allowance reduction can exceed savings
Chronically ill / precarious job situation	Risk of lease payments without income
People who want cheap bikes	For bikes under ~€1,500, buying directly is often more worthwhile.
self-employed	This model only applies to employees subject to social security contributions.

The best-case scenario – and how to recognize it

There is a version of company bike leasing that eliminates most of the criticisms: if the employer provides the bike as an additional service on top financed by the salary. Then:

Your gross salary remains unchanged → no pension gap, no reduction in parental allowance
Private use is tax and duty free
You bear no risk in case of termination or illness

Ask your employer explicitly about this before you sign a salary sacrifice agreement. More and more companies are using it as a benefit to retain employees.

Conclusion: Well thought out is half the battle.

Bike leasing isn't a sure thing. The model can be very worthwhile – but only if your personal circumstances are right. The most important questions to ask yourself before making a decision:

How secure is my job for the next three years?
Am I planning parental leave or a longer illness?
What is my actual marginal tax rate?
Can my employer finance the bicycle as an additional benefit instead of through salary sacrifice?
What will the bike actually cost me – including the final purchase price?

Those who answer these questions honestly will make the right decision – whether with or without leasing.

For a concrete calculation of your personal savings, we recommend our JobRad calculator article , which calculates the tax brackets and income scenarios in detail.