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Powered by Lease a Bike

Sept 7

6 min read

To the pump or to pump: the lease bike as a solution for the soaring fuel prices.

“It’s crazy, huh, those fuel prices!” You’ve probably heard someone say it recently. It wouldn’t surprise us, now that prices are around €2.50. The 19 cents per kilometer travel allowance may ease the pain a bit when you're at the pump, but it doesn't take away from the fact that you're paying a part of your journey to work out of your own pocket. Unfortunately, the travel allowance will not rise until at least 2024. 

 

However, the Dutch wouldn’t be the Dutch if we didn’t find a way to lower the costs. A company bike can make all the difference. By leasing a bicycle on a company basis, you can reap all the benefits of the mobility plan.

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The effect of raised fuel prices on the mobility plan

At the moment, everything is more expensive. But there’s still one thing which stands head and shoulders above the rest. Fuel. Looking at the price, fuel breaks record after record. 

 

Because the working from home mandate has been lifted for a while now, more and more people have returned to working from the office again. That does mean, however, that someone with a fulltime job in 2022 may spend about €300,- more on fuel, compared to before the WFH-mandate (Based on 5 working days and a return distance of 20 kilometers).

 

That’s why more and more employers now offer a mobility plan. Lease a Bike, a lease bike provider, already has seen an increase of 55% in visitors on their website. In addition, they have noticed an increase in requests from businesses wanting to get started with company bicycles. Often, these businesses are also willing to make a financial contribution on top of the standard (government) scheme - which shows that they are more than happy to set up a bicycle plan.

 

Business lease car vs lease bike: a world of difference

There’s a world of difference between leasing a car or bike. With a bike, you’re never stuck in traffic, so you can start your morning stress-free, and free of irritation. Maybe you’ll even save some time. Plus, you don’t need to worry about finding a parking spot, or about the parking costs. You can basically always find a spot for your bike. 

 

The biggest difference in costs, however, is due to the rising fuel prices. The average refuel might cost you €125 (based on a fuel price of €2.50 per liter). With a full tank, you might drive 700 km. For that same amount, you can charge the battery of your ebike 368 times – which translates to 33.000 km. Seems like a no-brainer to us!

 

With the new regulations surrounding the bicycle plan in 2020, the (electric) lease bike already became extra attractive and interesting. In addition to saving on the high fuel costs, you’re also doing the environment a favor. The CO2 emissions that each employee saves while cycling are equal to an airplane flying to Paris three times. That’s tough to top. In addition, you work on your health, without having to make extra time available. So it's not surprising that more and more employers and employees are opting for the bicycle plan instead of a new lease car.

 

The employer’s benefits of the bike plan

Making use of the bike plan has its benefits for both the employer and employee. For the employer it’s free to offer a bike plan – and it can be offered outside of the WKR (Expense Allowance Scheme). As an employer, you can save up to 15% on social security contributions. On top of that, you save on the costs that you’d normally spend on travel allowance or a company lease car, for parking or for costs incurred by employees using a fuel card. 

 

You can then re-invest these saved costs in co-financing the lease bike for your employees or in matters that contribute to your sustainability goals. This makes it extra attractive for your employees to take a company bike. That way, you both work towards a better world.

 

The employee’s benefits of the bike plan

As an employee, it’s also beneficial to make use of the bike plan. Let’s say your employer is affiliated with Lease a Bike. In that case, you can lease a bike with a tax advantage of at least 25%. In addition to the tax advantage that you keep from the lease bike scheme (because the fixed monthly rate is deducted from the gross salary), at the end of the contract period you get the option to buy the bike you've leased for about 15% of the acquisition value. So, normally, you’d already ride a bike for less, but now that driving a car is extra expensive, it’s even more a financial win-win.

A smart (and healthy) move

A bike plan is beneficial to both the employer and employee. Financially speaking, you’re even better off due to the high fuel prices. Health is another factor to consider, as taking the (lease) bike to work has its health benefits. That’s something both the employer and employee benefit from as well. Burn fat, not fuel!