A car via salary conversion is one of the current trend topics in HR and fleet management. It lets employers offer a retention benefit that costs them very little. The growing demand shows in the provider market: Ayvens, Octopus Electric Vehicles, VGRD Fleet, Vilocar, and Kazenmaier all launched new offerings between May and September 2026. On top of that come established providers such as SIXT+ and FINN, whose employee products have been on the market for some time. Employers who want to offer a car via salary conversion today are spoilt for choice.
At first glance, the offerings look alike. Almost all of them can be compared to the principle of company bike leasing, and almost all of them advertise savings of between 35% and 60%. On closer inspection, one point separates them that matters more to employers than the monthly rate. On one side are car subscriptions with terms of three to 12 months, on the other leasing contracts over two to four years. This determines who carries which risk when employees resign, go on parental leave, or are off sick for a longer period.
This comparison sorts the offerings by model, term, costs, and employer protection. For an overview of car subscription providers for private and business customers in general, see our car subscription provider comparison.
In Germany, this model is called Gehaltsumwandlung (salary conversion). In the UK, a similar arrangement is known as salary sacrifice.
With a car via salary conversion, the employer takes out a subscription or leasing contract and provides the vehicle to an employee for business and private use. In return, the employee gives up part of their gross salary equal to the monthly rate. The principle is familiar from company bike leasing, which almost all providers explicitly refer to.
A framework agreement between employer and provider governs terms, the ordering process, payment handling, and data protection. A separate car use agreement between employer and employee then governs the use of the vehicle and the amount of salary converted.
The model differs from the classic company car in how it is funded and who is eligible. The employer pays for a company car, which is usually reserved for certain roles. Employees pay for a car via salary conversion themselves, and the employer can in principle offer it to the entire workforce.
The first decision an employer has to make concerns the contract model. It divides the market more clearly than any other distinction.
For employers, the risk of an employee leaving weighs most heavily. In the worst case, a 12-month subscription runs on for a year after someone has left the company. A 48-month leasing contract can, in the worst case, run three years longer than the employment relationship. Leasing providers address this with their own solutions. Vilocar offers Vilosafe for this purpose, Ayvens optional payment protection insurance, and AMS has designed its model so that, by its own account, the employer is never charged for outstanding costs. Among the subscription providers, FINN offers a comparable add-on package with Care+.
For employees, leasing makes sense if they want to drive a specific model for several years. The longer term usually lowers the monthly rate, and some providers allow the car to be bought at the end of the term. Our direct comparison of car subscription vs. leasing shows the differences between the two models in detail.
Providing the car creates a taxable benefit in kind for the employee, which is taxed in the same way as for any company car. Under Section 6(1) No. 4 of the German Income Tax Act (EStG), the basis is the vehicle's gross list price, not the monthly rate. For battery electric vehicles, the 0.25% rule applies up to a gross list price of €100,000, and 0.5% above that. Plug-in hybrids that meet the legal requirements for electric range or CO₂ emissions are taxed at 0.5%, combustion engine cars at 1%. On top of this comes the benefit in kind for journeys between home and the primary place of work.
Read more: For a detailed tax overview of car subscriptions, see our car subscription tax guide.
This explains why the market is so focused on electric cars. For an electric vehicle with a gross list price of €50,000, the monthly benefit in kind for private use is €125. For a combustion engine car with the same list price, it is €500, an amount in the same range as the rate itself. Salary conversion then brings hardly any advantage. Five of the 12 offerings in this comparison are limited to electric vehicles.
Providers advertise three funding models, which affect employers and employees differently. The benefit in kind is the same in all three cases, because it depends on the gross list price. What differs is who pays the rate and how much the taxable gross salary falls.
With pure salary conversion, employees give up gross salary equal to the full rate. The employer has no costs for the vehicle, and no social security contributions are due on the converted amount. Most programmes in this comparison are designed for this model.
With an employer subsidy, the company covers part of the rate and only the remainder is converted. The subsidy reduces the cost to employees without changing the benefit in kind.
With a company car instead of a pay rise, the employer pays the full rate and the salary stays the same. This is the cheapest option for employees and the most expensive for employers, even though, unlike a pay rise, no additional social security contributions are due on the rate.
A fourth option is a contribution from the employee's net salary. Under the German Wage Tax Guidelines (LStR), it reduces the benefit in kind, but none of the programmes examined offer it as a separate model.
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SIXT+, FINN, NUVO, CarCharter, and INSTADRIVE bring an existing subscription fleet. Vehicles are available quickly and terms are short. For these providers, salary conversion is an additional sales channel for a product that is also available to private and business customers.
AMS, Ayvens, Kazenmaier, and Octopus Electric Vehicles come from fleet or employee benefit leasing and apply their contract logic to cars. Longer terms, specific models, and their own solutions for contingency cases are typical.
VGRD Fleet e.loop and Flotte Eins JobCar run through Volkswagen Group dealerships. The local dealership is the point of contact, and the vehicle range focuses on the group's brands.
Vilocar is the brand of a company founded in 2022 that focuses exclusively on the car via salary conversion model.
In addition, benefit platforms pass on individual providers' programmes, for example as one component alongside company bikes, meal allowances, or a mobility budget. They are not listed as separate providers here, because the contract, vehicle, and terms come from the connected provider.
SIXT+ offers the JobAbo with fixed terms of three, six, or 12 months. The subscription ends automatically at the end of the term, and without a follow-on subscription the vehicle must be returned on time. Customers book a vehicle category, and according to the provider there is no model guarantee. SIXT+ states that pausing the subscription and changing models are possible.
The rate includes vehicle tax, maintenance and wear, liability insurance, winter-ready tyres, breakdown assistance, and registration, and for 12-month terms also a basic protection package. Depending on the term, a one-off start or provision fee of between €500 and €1,500 applies, which can alternatively be paid in monthly instalments of between €135 and €180. Employers sign a framework agreement and manage the contracts in a dedicated business portal.
Suits companies looking for short commitments and fast availability through a branch network.
FINN's JobAuto is a car subscription with terms from six months. FINN explicitly distinguishes between its regular business subscription for employees entitled to a company car, where the company pays the rate, and the JobAuto, which is open to all employees and funded through salary conversion.
Subscription prices are subject to provision costs of €1,500, payable once or in monthly instalments, and a €299 delivery fee for the first booking. Insurance, vehicle inspections, taxes, and registration are included. For employers, FINN offers Care+, an add-on package covering unforeseen cases. FINN describes the framework and car use agreements on its website.
Suits companies looking for a multi-brand range with a choice of specific models and short terms.
NUVO, based in Monheim am Rhein, offers car subscriptions for companies with terms from six months, and according to the provider, delivery takes seven to 10 working days. Electric, petrol, and diesel vehicles are available, and business offers range from €699 to €1,799 net per month.
NUVO presents two ways of using the car as a benefit. On its "company car instead of a pay rise" page, the provider calculates that an employer-paid subscription can cost less than an equivalent pay rise. A separate page is aimed at employees who fund the subscription through salary conversion.
Suits companies that want to use the car as an employer-funded benefit in place of a pay rise.
CarCharter is a brand of Fuhrwerk Plus GmbH, with locations in Nuremberg and Cologne. Its fleet product runs for four, six, or 12 months. In the benefit product for salary conversion, the offer extends to leasing contracts with terms of four to 48 months.
The provider describes itself as manufacturer-independent and supplies only new vehicles, many of them within a few days according to its own information. Swapping vehicles during the term is deliberately not offered, so employees keep the car they chose until the end of the contract. Light commercial vehicles are available alongside passenger cars.
Suits companies that want to offer subscription and leasing from a single source and choose the term per employee.
INSTADRIVE offers electric cars only and uses the terms subscription and leasing side by side for its salary car. According to the provider, terms and mileage packages can be adjusted. In addition to new cars, INSTADRIVE also has used electric vehicles in its range.
By its own account, the provider charges no registration or contract fees. The rate includes a protection package, maintenance, all-season tyres, breakdown assistance, and a warranty for the entire contract term. INSTADRIVE applies for the GHG quota (THG-Quote) for the vehicles itself. A calculator on its website shows the effect for employees and employers separately.
Suits companies looking for an all-electric offer without one-off fees that are also open to used vehicles.
Vilocar is the brand of Vilonda GmbH, founded in 2022 and based in Frankfurt am Main, and has been on the market since September 2026. The model is leasing, and the price examples on its website are based on leasing offers from Deutsche Leasing AG with a 36-month term and 10,000 kilometres per year. Over 100 electric models are available, with rates starting at €173 gross per month according to the provider.
The rate includes comprehensive and liability insurance, maintenance and wear, statutory vehicle inspections, registration, delivery to the door, claims management, and GAP cover for total loss. According to Vilocar, there is no down payment. The vehicle may also be driven by others, including new drivers. For job changes, the provider mentions flexible return options and protection packages.
Suits companies that want to offer a wide range of electric cars over a longer term.
AMS is a Berlin-based leasing company that offers company bike and smartphone leasing via salary conversion alongside the JobCar. The programme is independent of the identically named JobCar from Flotte Eins. Employees have a free choice of brand and dealer, and AMS also finances permanently installed dealer accessories.
The focus is on how risk is shared. According to AMS, the employer is never charged for outstanding costs, whether for damage, higher mileage, or early return, and contingency cases are handled solely between AMS and the employee. If the entitlement to salary ends, so does the leasing rate. In addition to standard leasing, AMS offers a two-contract model in which AMS provides the vehicle directly. Employees who want to buy the vehicle at the end must declare this when signing the contract. According to AMS, it then pays flat-rate tax on the price advantage over the market value under Section 37b EStG.
Suits companies that want to hand over the risk of employees leaving entirely and give employees a free choice of vehicle.
Karlsruhe-based Kazenmaier Leasing has offered company car leasing via salary conversion since September 2026, exclusively for electric cars. According to the company, it does not lease plug-in hybrids as a matter of principle.
In the framework agreement, employers specify which employees may take part, up to which vehicle category they can choose, and which maximum conversion rate applies. Preconfigured vehicles from small cars to SUVs are available, and an online portal shows employees the effect on their net salary in advance. Insurance, maintenance, and tyres are included in the rate. Kazenmaier describes itself as a single-source direct leasing provider combining leasing company, protection, and service, without detailing the scope of the protection on its website. According to the provider, taking over the vehicle at the end of the term is not intended. Kazenmaier has not yet published specific models, terms, or sample rates.
Suits companies that want to set clear guardrails on vehicle category and conversion limit.
Behind e.loop is VGRD Fleet, the fleet customer division of Volkswagen Group Retail Deutschland with more than 180 brand outlets. Employers sign a framework agreement with VGRD Fleet, after which employees use electric and hybrid vehicles from the Volkswagen Group. Selection and processing run through a dedicated app that is already in use in the United Kingdom. According to the provider, no down payment is required.
At e.loop, services are set up as modules. Depending on company size and needs, maintenance and wear, tyre service, and various insurance policies covering leasing risks can be added. According to VGRD Fleet, the basic model creates no additional costs for companies.
Suits companies that already work with Volkswagen Group brands and want to put services together individually.
Octopus Electric Vehicles is the electric car division of Octopus Energy and has offered the model in Germany since July 2026, after establishing it in the UK. At launch, 67 electric models from 14 manufacturers were available, including BMW, BYD, Kia, Mercedes, Polestar, and Tesla. Octopus rents the vehicle to the company, and the employer governs how it is provided to employees.
The package covers delivery, comprehensive insurance, maintenance and servicing, statutory vehicle inspections, a tyre package, breakdown assistance, and an annual credit of €250 for public charging. According to Octopus, there is no down payment or provision fee. For employers, the provider mentions protection in the event of resignation, parental leave, job change, or illness. The provider's sample calculation assumes a two-year term with 10,000 kilometres per year, and the website does not mention other term options.
Suits companies looking for a wide range of electric cars without one-off costs that also want to cover charging.
Since May 2026, Ayvens has offered the Benefit Car programme together with its partner eclara. Employees register with an eligible email address, choose their electric car online, and sign digitally. The employer approves the order via the platform and remains the lessee, receiving the payroll data automatically.
The rate includes vehicle procurement, registration and delivery, maintenance and wear with breakdown service and tyres, insurance and claims management, vehicle tax and the broadcasting licence fee, as well as collection and remarketing of the vehicle. If the salary stops, for example due to resignation, parental leave, or illness, Ayvens offers optional payment protection insurance. On top of this come a CO₂ certificate for the company's carbon accounting and support with the internal launch. The website does not state terms.
Suits companies looking for a large leasing partner with support for the launch.
Flotte Eins has sold the JobCar since May 2025 through Volkswagen Group dealerships with 82 fleet customer service centres and around 320 locations. The programme is independent of the identically named product from AMS. Leasing contracts run for 24 months with mileage of between 10,000 and 35,000 kilometres per year.
Maintenance and wear, wheels and tyres, and motor insurance are included. Each company decides which employees get access, the maximum leasing rate, and which models are available. The local dealership remains the point of contact.
Suits companies that prefer a fixed local contact, for example in skilled trades or regionally rooted mid-sized businesses.
Almost every provider advertises a percentage saving. AMS cites an average of 35% compared with a privately leased vehicle. SIXT+, FINN, Octopus, CarCharter, and INSTADRIVE advertise up to 40%, VGRD Fleet up to 50%, and Vilocar up to 60% compared with private leasing. NUVO calculates in absolute figures and arrives at up to €15,000 per employee per year compared with a pay rise.
These figures cannot be compared, because they are based on different reference points. SIXT+ and FINN relate the saving to their own regular subscription rate, Vilocar and VGRD Fleet to private leasing, and Octopus to the full cost of conventional leasing including insurance. NUVO compares from the employer's perspective against a pay rise.
The maximum values apply to a favourable combination of a high marginal tax rate, an electric vehicle, and a gross list price that is low relative to the rate. With a lower income or a combustion engine car, the saving is considerably smaller.
One-off costs, on the other hand, can be compared. According to their own information, Octopus charges neither a down payment nor a provision fee, and INSTADRIVE no registration or contract fees. FINN charges €1,500 in provision costs and a €299 delivery fee, SIXT+ between €500 and €1,500 depending on the term. For a six-month subscription, these amounts make up a noticeable share of the total cost.
For employees on probation or on fixed-term projects, programmes with short terms are a good fit. SIXT+ starts at three months, CarCharter at four, FINN and NUVO at six. A leasing contract over 24 or 48 months rarely makes sense for this group.
If you want to offer the car to the entire workforce, look at employer protection first. With a large number of contracts, resignations and parental leave become the norm. AMS, Ayvens, Vilocar, and FINN offer their own solutions for this, which differ in scope and cost.
Companies with a fleet electrification target will find all-electric programmes at Vilocar, Octopus, Kazenmaier, INSTADRIVE, and Ayvens. With the other providers, the selection can also be limited to electric vehicles, depending on the framework agreement.
For businesses that want a local point of contact, VGRD Fleet e.loop and Flotte Eins JobCar are options thanks to their dealerships. If you want to let employees drive a specific model of their choice for several years with a purchase option, AMS offers the most freedom in model choice. And if you want to use the car as an employer-funded benefit instead of a pay rise, NUVO provides a calculation for exactly this case.
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Get infoIt starts with the framework agreement between employer and provider. In it, the company specifies which employees may take part, up to which vehicle category or rate they can choose, and which powertrains are allowed. Kazenmaier and Flotte Eins explicitly describe these guardrails as part of the framework agreement.
Employees then choose their vehicle, usually via the provider's portal or app, and sign the car use agreement. The employer approves the order, and the vehicle is delivered or collected from a branch. From the first month, the conversion amount and the benefit in kind are included in payroll.
At the end of the term, the vehicle is returned. At AMS, it is returned at an inspection centre of an independent vehicle appraisal organisation, and damage and excess mileage are offset against a reserve built into the rates. With subscription providers, the vehicle is returned at a branch or via a logistics partner.
The car use agreement is the most important document in the entire model. It governs what happens to the vehicle and the salary conversion when employment ends, when parental leave or a long illness interrupts the entitlement to pay, and who pays for damage beyond the deductible. Depending on the provider, this risk lies with the employer, the employee, or an insurer. This allocation should be settled before signing.
For insurance and liability, it is worth checking the deductible, comprehensive cover, and who is allowed to drive the vehicle. Vilocar explicitly allows new drivers, and at AMS, use by third parties is covered. Subscription models often use liability waivers rather than conventional insurance policies.
Because salary conversion affects pay structures, companies with a works council (Betriebsrat) need to clarify its involvement. [VERIFY: co-determination under Section 87(1) No. 10 BetrVG] For lower salaries, the conversion must also not push pay below the statutory minimum wage.
Salary conversion reduces income subject to social security contributions and therefore entitlements to pension, unemployment benefit, and parental allowance.
Read more: What this means in detail and which cases don't count as contingency cases: the most common questions about car subscriptions from HR and fleet managers
For capital market-oriented companies, accounting under IFRS 16 may play a role. AMS states that its model does not create an obligation to recognise the lease under IFRS 16.
Finally, home charging comes into play with electric vehicles. Since 1 January 2026, employers can only reimburse electricity charged at home for a company vehicle tax-free as reimbursement of expenses under Section 3 No. 50 EStG on an exact kWh basis or via the flat electricity rate of €0.34 per kilowatt hour.
If you already offer several mobility benefits, a car via salary conversion adds another contract, another payroll item, and another point of contact. A platform like NAVIT brings car subscriptions and car leasing together in the same interface used to manage the Deutschlandticket, company bike leasing, the mobility budget, and home charging. NAVIT is not a vehicle provider itself and connects partners' programmes.
Mobility policies let you specify whether and how much of an existing mobility budget is credited towards the rate. Payroll-relevant data is prepared per vehicle and month for payroll accounting.
Disclaimer: This article reflects the situation as of 2 October 2026 and does not replace tax or legal advice. The information on providers is based on publicly available information and may change at any time. The tax treatment of salary conversion models depends on how they are structured in each individual case. Please coordinate the implementation with your tax advisor.
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