The successful benefit model “Job Bike” is now being extended to cars. That means that if employees get a car subscription (Auto-Abo) through their employer, especially an electric car, they can save up to 40% compared to a private subscription.
Offers like JobCar or FINN JobAuto are becoming popular employee benefits that help employers attract talent and keep them long-term. In this article you’ll find out what exactly a JobCar subscription is, what advantages it offers, and which tax aspects need to be considered.
A JobCar is a car subscription for employees, offered by providers such as ViveLaCar and the AMS Group. A similar model is JobAuto by FINN. Through JobCar, employers make a car subscription available to their staff for business - and often also private - use.
Both employer and employee benefit from maximum flexibility and tax advantages. A JobCar combines the benefits of salary conversion with those of a car subscription. Employees can have the monthly subscription fee deducted directly from their gross salary, saving up to about 40% compared to a private car subscription. For employers, JobCar offers a valuable financial benefit, helps with retention, and makes them more attractive as a place to work.
Employees receive a car subscription through their employer under the JobCar model. The usage terms are clearly defined, and private use is often permitted - but must be accounted for in taxes. The subscription usually includes maintenance, insurance, and other services. On the employer side, JobCar is used as a recruiting and retention tool.
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Just like a company car, JobCar represents a non-cash benefit (“geldwerter Vorteil”) that must be taxed. The most commonly used method is the 1% rule, where 1% of the vehicle’s gross list price is taxed monthly as benefit. Alternatively, there’s the logbook method, where exactly which trips are business vs private are recorded.
Electric cars are especially attractive right now because they receive favorable tax treatment and a reduced non-cash benefit. The JobCar is generally acquired via salary conversion to take advantage of those tax benefits.
For Employers:
For Employees:
There are now many providers offering Auto-Abos aimed at employees as flexible alternatives to traditional company cars or as a benefits offering. Providers like ViveLaCar or AMS Group offer the Business Auto-Abo as JobCar; FINN offers a JobAuto; other providers include like2drive, VW Financial Services, and more. Companies can provide employees with everything from small cars to premium models, including many electric cars. Through comprehensive mobility platforms like NAVIT, a JobCar can also be combined with other mobility benefits, such as the Deutschland-Jobticket or bike-leasing.
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Get infoMany subscription providers include electric cars in their JobCar offerings. This is especially attractive for companies: electric cars via subscription make employers more appealing and help improve their CO₂ balance, particularly if they replace conventional company cars with combustion engines.
A key benefit for companies: the non-cash benefit for electric cars is taxed at just 0.25% if the car costs up to €60,000. If it costs more, it’s 0.5%. That’s still much less than what the 1% rule demands. Also, journeys between home and workplace are taxed at 0.03% similarly for electric cars.
To see how much you could save, both employers and employees can use online calculators from providers such as ViveLaCar or the FINN JobAuto calculator. These tools help make the taxable benefit, monthly costs, and possible savings transparent. They show whether the JobCar model makes financial sense in each case.
Whether a JobCar is worthwhile depends a lot on individual needs and conditions. For companies aiming to attract and retain skilled workers, JobCar is a valuable tool. Employees especially benefit from the financial advantages of salary conversion and the simplicity - because everything is included in the monthly fee.
It’s particularly a good solution for those who frequently travel for private and work purposes. A subscription for an electric car can be especially attractive if employees want to use an EV regularly without committing long-term, or just to try a certain model.
JobCar is appealing for employees who use a car regularly. A mobility budget, by contrast, offers much more flexibility. Employees with a mobility budget can spend it on various modes of transport - public transit, carsharing, bikes, etc. Which model is better depends heavily on employee needs and company culture.
JobCar is an appealing employee benefit with tax and financial advantages for both employees and employers. Companies should still keep alternative models like mobility budgets in view, to meet the changing needs of their workforce.
Employers can follow these four steps for a successful implementation of car subscription models like JobCar through salary conversion:
Who pays the costs with JobCar?
Employees get the JobCar via salary conversion. The monthly subscription rate is deducted from their gross salary.
What obligations does the employee have?
If the car subscription is via salary conversion, the employee must pay taxes on the non-cash benefit.
Can employees use a JobCar privately without limits?
That depends on the employer’s rules - but private use is often possible.
What happens to the car if the employee leaves the company?
Usually the car must be returned. Details are set in the usage agreement.
Who covers maintenance and repairs?
JobCar subscriptions are all-inclusive: the monthly fee typically covers depreciation, insurance, taxes, maintenance, inspections, often even tire changes.
What’s the difference between JobCar and a traditional company car?
JobCar is a modern subscription-based model (e.g. by ViveLaCar or AMS Group), while a traditional company car is usually provided via leasing or purchase.
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