How Bike Leasing Works for Employers

Would you like to offer your employees bike leasing as an employer? We provide comprehensive support and have summarized the key aspects clearly for you.

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Offering company bikes through bike leasing in your company is very easy. The NAVIT mobility platform simplifies the administrative processes and ensures that the bike leasing process is not only digital but also tax-optimized.

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Here’s how it works: You and your company enter into a framework agreement with NAVIT and get verified by our leasing partner. Then, we grant you access to the digital platform, where you can access our partner's leasing portal. Finally, it takes just two clicks to bike happiness:

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1. Simply enable registration for employees.
2. Then confirm the bike offer.

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To explain the leasing model in more detail, including its terms and concepts, we have summarized the most frequently asked questions here.

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What is the Leasing Framework Agreement?

The leasing framework agreement forms the basis of the company bike program. It is concluded between the employer and the leasing partner. This contract regulates the conditions such as payment processing, formalities for individual leasing contracts, insurance, data protection, confidentiality, and the ordering process. Note that a framework agreement can only be concluded after a positive credit check.

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How Employees and Employers Can Save with Bike Leasing

Companies can best account for bike leasing through salary conversion. Employees save up to 40 percent compared to a private purchase through existing tax and social security benefits. At the same time, employees benefit from a comprehensive insurance package including full coverage and mobility guarantee. Employers also benefit from significant tax and social security savings through salary conversion, which they can mostly pass on to employees as a “mobility allowance.”

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Company Bike Leasing as a Salary Supplement (0% Rule) vs. Salary Conversion (0.25% Rule)

Company Bike Leasing as a Salary Supplement (0% Rule):

• Leasing rate paid by the employer.
• Additional to salary: Private use, including the commute to work, is tax-free.

Company Bike Leasing via Salary Conversion (0.25% Rule):

• Leasing rate paid through salary.
• No income tax, but a taxable benefit (private use) of 0.25% of the gross list price.

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Do Employees Have to Tax the Private Use Like a Company Car?

In principle, even with a company bike provided via salary conversion, employees must tax the private use as a taxable benefit – similar to a company car. However, a preferential tax rate of only 0.25 percent of the gross list price per month applies to a company bike, instead of the 1 percent rule for company cars. Nevertheless, employees can still claim the distance allowance for trips between home and work, regardless of the means of transportation.

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Can an Employer Support Employees with Allowances?

Absolutely. Employers can fully cover the leasing rates or subsidize the rates partially. The level of subsidy provided by employers is specified in the leasing framework agreement. However, covering the insurance fees is mandatory. If employers cover the entire leasing rate, employees receive the company bike tax-free.

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Introducing company bikes for employees is straightforward for companies, and there are several additional reasons and benefits to partnering with NAVIT:

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100% Effort Neutral

Companies have minimal administrative effort through bike leasing with NAVIT. This can even be offset by social security savings.

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Legally Compliant Contracts

All relevant contracts are constantly reviewed legally and for tax compliance.

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Full Cost Control

Leasing rate, insurance rate, and service rate: All aspects are firmly agreed upon for the entire duration with the conclusion of the individual leasing contract. Between the takeover of the company bike and the start of the leasing rate payments (always on the first of the month), employees can use the company bike free of charge and are fully insured.

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100% Protection through Intelligent Incident Management

In case of disability, termination, inability to work, parental leave, or death of employees: With bike leasing through NAVIT and the leasing partner, employers are fully protected in all cases. All company bikes are taken back by our leasing partner based on a 100% return rate. In case of early terminations or regular expiration of the individual leasing contract, the partner takes care of the free collection and marketing.

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Full Selection

All brands, all bike types: Whether e-bike, pedelec, or cargo bike. With bike leasing through NAVIT, employees have the choice. There are no dealer restrictions, and employees have access to over 6,000 participating partners nationwide.

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Company Bike Leasing as Part of a Comprehensive Mobility Policy

Employee mobility does not have to stop with company bikes. With an additional mobility budget, employees gain easy and complete access to further mobility options, allowing them to switch modes of transport flexibly.

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